Economics Assignment Arguements
Added on - 21 Apr 2020
Running head: COMPARING THE ARGUMENTS MADE BY RADICAL ANDNEOCLASSICAL ECONOMISTCOMPARING THE ARGUMENTS MADE BY RADICAL AND NEOCLASSICALECONOMISTName of the StudentName of the UniversityAuthor’s Note
1COMPARING THE ARGUMENTS MADE BY RADICAL AND NEOCLASSICALECONOMISTIntroductionThe essay focuses on the comparison between the key arguments made by both theradical economist and neo-classical economist. The term ‘radical economics’ has been used forlabeling the work as well as ideas of the political economist who mainly takes left wingviewpoint on the economics discipline (Feiwel, 2012). On the other hand, neo-classicaleconomics is defined as another dimension of economics that focuses on determination ofproducts, distribution of income and output in the marketplace through demand as well assupply. Income-constrained consumer and profits by organization mediate the determination ofproducts through utility maximization.Similarities and differences between the approaches made by neo-classical and radicaleconomistRadical economics refers to a collective term for those individuals who are vital ofprescriptions and ways of neo-classical economics. Radical economist are generally split intothree types of group, which includes-High profile radical economist who provides illustrations about capitalism, stagnationand catastrophe for the peopleThe second group of economist who occupy eclectic position on both stagnation as wellas crisisThe third group of economist are basically focused in academic rather than policy group.These economist are vital as their ideas reflects underpinnings for social thinking.
2COMPARING THE ARGUMENTS MADE BY RADICAL AND NEOCLASSICALECONOMISTRising discontent of neo-classical economics has introduced radical economics that mainlyrelies on the Keynes ideas. The radical economists usually argues that finance as well as bankingare not in control and should be reined in. They also points out that austerity not only preventsrevival of capitalism but also is considered as burden on people of working class (Foster &Yates, 2014). On the contrary, neoclassical economist argues that the people makes subjectivejudgment about the total satisfaction received by consumer from the products and services.Moreover, they also pointed out that the present economic system provides optimal productioncondition and specific rules for such circumstances where the allocation of scarce resources isdone between the competing ends.Although radical views of radical economist are diverse, few ideas about the wrong notion ofneoclassical economics unites them together. It has been argued by radical economist that radicalposition consists of three basic points that includes-Radical economists are of the view that several socio-economic problems could be solvedthrough restructuring of the existing society (Henry, 2012). They also argue that workersalienation, poverty, environment destruction etc are directly obtained from generalfunctioning of capitalism.These economists also argue that there have huge inconsistencies between theoriesadopted by neo classical economist and real experiences.Radical economist observes society as specific integrated social system that exists inhistorical situation (Lawson, 2013). They are of the view that mainstream or neo-classical economics generally accepts institutions including market as well as considerseveral proposals to reform these institutions.