The Supply and Demand Story: A Dystopian Counter-Factual


Though neoclassical (NC) economists claim that their doctrine is an objective science, the economic system that they present as an ideal benchmark, or counterfactual, against which all actual economies should be measured, a “perfectly competitive free market” (PCFM), reflects a very specific set of values. As has been discussed in previous chapters, the self-representation of NC economics as a science based on a SDM or free competitive market meme is not an irrefutable outcome of natural observation like physics or chemistry but rather is an ideology that elevates particular values above all others. This chapter examines this proposition in greater detail.

The easiest way to show that NC economies is an ideology is to posit a perfect PCFM world. Assume that all wealth is equally distributed and that PCFM’s, including perfect information and perfect enforcement of contract and property rights, reign. Further assume that all legitimate externalities and other market failures, such as...


Social Choice Capitalist Economy Labor Power Productive Investment Quantitative Ease 
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Authors and Affiliations

  1. 1.Benedictine UniversityIllinoisUSA

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