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Neoclassical economics begins with the premises of private property and self-interest. Whatever the structure and distribution of property rights, it assumes the right of owners—whether as owners of land, means of production or the capacity to perform labor—to follow their self-interest. In short, neither the interests of the community as such nor the development of human potential are the subject matter of neoclassical economics; its focus, rather, is upon the effects of decisions made by individuals with respect to their property.
Logically, then, the basic unit of analysis for this theory is the individual. This individual (whether a consumer, employer or worker) is assumed to be a rational computer, an automaton mechanically maximizing its benefit on the basis of given data. Change the data and this "lightning calculator of pleasures and pains" (in the words of the American economist Thorstein Veblen) quickly selects a new optimum position.1
Raise the price of a......
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Title: Ideology And Economic Development
Approximate Word Count: 1033
Approximate Pages: 5 (250 words per double-spaced page)
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