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The claim that neoclassical economics is a straw man, is a double edged sword. On the one hand, you are right the economics can't be accused of ignoring obviou
by swatow 12y ago
The claim that neoclassical economics is a straw man, is a double edged sword.
On the one hand, you are right the economics can't be accused of ignoring obvious flaws in neoclassical economics (e.g. various market frictions).
On the other hand, neoclassical economics contains some core truths that fundamentally inform how most economists think. It is a kind of zero'th order approximation to reality for economists (and the first order approximation is "optimal taxation theory"). So I think that mainstream economists do have a common set of beliefs that is strongly influenced by neoclassical theory (someone else in this page mentioned free trade, which is probably the best example of an application of neoclassical theory that almost all economists agree with).
- greggyb 12y agoI don't disagree with the thrust of your post. I'd like to clarify my own position though, as your post makes me feel I was not entirely clear. I claim that the picture the protesters paint of neoclassical economics is a straw man. Perfect markets and enlightened consumers are not an assumption in neoclassical economics, nor are they required to support free trade (to use your own example of an issue with wide agreement).