by Despite growing diversity in research, the theory flow of economics, often referred to as neoclassical, continues to dominate teaching and politics. It developed in the 19th century as an attempt to apply the methods of the natural sciences and especially physics to social phenomena, In the search for an “exact” social science, social relationships are abstracted to such an extent that calculations are possible. The neoclassical economics department primarily poses a question: How do rational actors optimize under certain circumstances? This approach in itself is not a bad thing. However, in view of the ecological crisis, we have to ask ourselves completely different questions in society: How can the planetary collapse be prevented? What can an economic system look like that is social,
Topics:
Editor considers the following as important: Uncategorized
This could be interesting, too:
tom writes The Ukraine war and Europe’s deepening march of folly
Stavros Mavroudeas writes CfP of Marxist Macroeconomic Modelling workgroup – 18th WAPE Forum, Istanbul August 6-8, 2025
Lars Pålsson Syll writes The pretence-of-knowledge syndrome
Dean Baker writes Crypto and Donald Trump’s strategic baseball card reserve
Despite growing diversity in research, the theory flow of economics, often referred to as neoclassical, continues to dominate teaching and politics. It developed in the 19th century as an attempt to apply the methods of the natural sciences and especially physics to social phenomena, In the search for an “exact” social science, social relationships are abstracted to such an extent that calculations are possible. The neoclassical economics department primarily poses a question: How do rational actors optimize under certain circumstances? This approach in itself is not a bad thing. However, in view of the ecological crisis, we have to ask ourselves completely different questions in society: How can the planetary collapse be prevented? What can an economic system look like that is social, fair and ecological?
The necessary emission reduction should always be achieved by pricing CO2 – other control options remain subordinate to this approach.
The dominance of neoclassical can be seen, among other things, from the fact that these questions are structurally marginalized in the current debate. The societal discussion about dealing with climate change is dominated by market economy instruments. Be it the demands of Fridays for Future, the recommendations of the special report of the Council of Experts on the assessment of macroeconomic developments or the legislative proposal by Alexandria Ocasio-Cortez known as Green New Deal : The necessary emission reduction should always be achieved by pricing CO2. Other control options, such as regulatory law, remain subordinate to this approach.