12/05/2019

overthrow neoclassical economics

"My personal moonshot is that I wish to be a leader in overthrowing neoclassical economics. A better approach would focus on mental-cultural factors and rapid evolution.

As I see it, neoclassical economics is characterized by two essential propositions.

[1] Production is a process that employs two primary factors — labor and capital.

[2] The distribution of returns to labor and capital reflects their respective contributions to the production process.

There are many economists, particularly on the left, who reject (2) in favor of theories of distribution that stress the role of political power. This criticism may have merit. But my criticism is more fundamental than that. I reject (1) as a useful description of the contemporary economy."