An Analysis Of The Theories Of Neoclassical And Political Economy And The Practicality Of Each.

1547 words - 6 pages

Paradigms of NeoclassicalAnd Poltical EconomyIn our society today, there are great disparities between different groups of people. The gaps exist between those in every segment of the world, from those of different religions or nationalities, those of rich or poor families, to those who may or may not be educated. The ways in which economics and societies intermingle dictates virtually every part of our lives, from what we wear and eat, to what we do and think. To explain these phenomena, there are two main theories: Neoclassical, and Political Economy.The Neoclassical approach is based on how goods and services are exchanged, and that relationship with supply and demand. Neoclassicism defines a successful market as one with many buyers and sellers, thereby creating competition. The idea being that with sufficient competition the economy will be controlled by market forces, which in turn will disallow corporations or individuals from influencing it. This model does, however, rely on a number of inconsistent variables. For instance, one of the assumptions made by Neoclassicists is that economic actions are undertaken by rational individuals using all available information to maximize their personal utility. This model is also largely based on "laissez faire" philosophy, which is effected by adjustments or manipulations of economies by governments or other external factors. It holds that such intervention is inefficient, and thus disrupts the economy in such a way as to raise prices for individuals, thus lowering their utility.This model also illustrates a classic split between the rich and poor, as some of its assumptions rely on the law of demand, substitute goods, and equilibrium. These are concepts which make sense in theory, but in terms of direct application to the economy and the actions of consumers, are slightly abstract. With the law of demand, it seems obvious that, when the price on a given good increases, that substitutes are sought. For instance, when the price of California wines increases, average consumers seek a substitute by purchasing French wine, whose price remains steady. Yet, this example applies to only some of society. The counter example of this is that, even though gas insurance prices have been climbing, the price of a new Ferrari continues to rise, and even though supply goes up, the demand remains the same. There are alternatives, such as a lowly Porsche, but because of the ability to ignore prices, the wealthy do not need to be rational, so their economic behavior is often highly irrational. Furthermore, under the Neoclassical model, discrimination is supposed to be avoided because it raises costs for everyone. Yet as we saw in 'Rosie The Riveter', after World War II, even though women were less expensive to hire, and equally, if not more capable than men, they were denied employment, resulting in lower profits and higher prices for all. Though there remain other discriminatory issues regarding the wages and rights...

Find Another Essay On An Analysis of the theories of Neoclassical and Political Economy and the practicality of each.

Economics, Politics and (International) Political Economy: The Need For a Balanced Diet in An Era of Globalisation

6749 words - 27 pages three.Globalisation, the state and national politicsFrom a neoclassical economic perspective, government--especially the welfare state in the post-World War II era--is inefficient. Thus, beyond the provision of basic public goods, such as the role of law and external security, the dismantling of the public economy must come sooner or later in an era of globalisation. Much economic analysis fails to recognise the manner in which domestic political institutions

The Role of IMF in the International and National Political Economy of Nigeria and Cameroon

2435 words - 10 pages The Role of IMF in the International and National Political Economy of Nigeria and Cameroon The financial system in the international scale has been very impressive in the struggle to develop the economy of the world. With the integration of the economy of the world through Foreign Direct Investment (FDI) to interfere in the activities of an economy has been imperative among others (Havnewk, 1997). Overtime the idea that richer countries taking

An analysis of the economical, political and psychological causes of homelessness

2427 words - 10 pages in structural and individual factors such as economic instability, political barriers and psychological disorders.This issue will be studied through a disciplinary analysis. It will focus on the economical, political and psychological causes of homelessness. In addition, certain theories and concepts will be analyzed to increase the understanding of this social issue.The first discipline that will be integrated is economics. The related theory

The Canadian Divorce Act: The Practicality of an Age-Old Document in Modern Day Society

1126 words - 5 pages still that one spouses, and they do not have to pay the other spouse in order to keep it . Occasionally, each spouse's contribution to the net worth of the family is really unequal. In this case, an order of unconscionability is given. The order allows the spouse making a much greater contribution to receive more than half of the net family property, without having to give an equalization payment . The matrimonial home belongs to both spouses and

An Analysis of Theories

1036 words - 5 pages There are many theories that cover specific moral believes. The following theories relate either to the consequentialists that belief that, “the rightness of an action depends on the amount of good it produces,” or the non- consequentialists that belief that, “the rightness of an action does not depend entirely on its consequences” ( Vaughn, 2010 , 67 ). My belief is, that life is a mix of both beliefs and their conjoining theories. Also, I

Neoliberalism: a social, political and economical concept that is based, among others, on classic liberalism and the neoclassical theory and its purpose is minimizing the influences of the state on...

3904 words - 16 pages following amongst the intellectuals that had rejected them during the early Enlightenment. State interventionism increased towards the end of the 19th century; in the United States the Progressive Era saw an accelerated movement to re-institutionalize government controls over the economy. With an intellectual and political foundation in place, the onset of the Great Depression and the rapid industrialization of the Soviet Union increased support for

Practicality of Disarmament

3866 words - 15 pages nations with the permanent and organic system of international political institutions. This attempt was an outcome of the world war." In the post-World War II period, there were discussions at several levels with a view to the limitation and control of armaments. Efforts ranged from continuous talks at the United Nations to such discussions among nuclear powers from the SALT era to the START era and it still continues...What is Disarmament

An analysis of the three main characters in Tennessee Williams's A Streetcar Named Desire and the importance of survival to each

704 words - 3 pages Tennessee Williams definitely created very interesting characters when he wrote A Streetcar Named Desire. The main characters oppose each other in style, in speech, in lifestyle and in culture, but one thing they all seem to have in common is an inexplicable void in their life, an unhappiness and a great sense of incompleteness. The four main characters see their survival as very important and throughout the play it is evident how they undermine

The Life, Works, Theories, and Analysis of Plato

1809 words - 7 pages interested.Around 428 BC, Ariston and Perictione had a child, Plato. Ariston, who descended from the early Athenian kings, and Perictione, who was related to Solon the early lawmaker, were a wealthy and aristocratic family. Prior to Plato reaching adulthood, his father Ariston died. Perictione decided to remarry an associate of the statesman Pericles, Pyrilampes.Plato fought in the Peloponnesian war from around 409-404 BC, but did not want a military career

Theories and their Differences: Analysis of Robert Dahl’s Who Governs, and Robert Michels’ Political Parties

2114 words - 9 pages that the similarity between these two generally ends there. In point of fact, the purpose of this paper is to critically asses Robert Dahl’s Who Governs, and Robert Michels’ Political Parties to exhibit the dissimilarities of their respective theories. In Who Governs, Dahl takes aim on New Haven, Connecticut, as a test case of the degree to which the American political system, at least on the local level, is undemocratic because of its

Describe the porter's diamond model and show how each of the five factors influence the attractiveness of an Industry

3644 words - 15 pages barriers to leaving an industry are high (e.g. the cost of closing down factories) - then competitors tend to exhibit greater rivalry.Now let's go deeper to each and every factor'sI. RivalryIn the traditional economic model, competition among rival firms drives profits to zero. But competition is not perfect and firms are not unsophisticated passive price takers. Rather, firms strive for a competitive advantage over their rivals. The intensity

Similar Essays

An Analysis Of Nozick And Held's Political Theories

1976 words - 8 pages . In particular, Nozick has had a major influence on the analysis of personal identity, as well as the analysis of political right-wing contributions. So, in order to understand why Held introduces claims against the current system, it is essential to consider her social and political views and compare those with the contractual political theories, supporting that the government should serve as a moralizing tool for the community first. While the

The Practicality Of The Social Contract

2193 words - 9 pages sacrifice certain liberties to a government or similar authority. As Rousseau explains, the contract begins when “Each of us places his person and all his power in common under the supreme direction of the general will” (148). Essentially, it is an agreement between the rulers and the ruled that produces a stable political state. John Locke’s The Second Treatise of Government and Jean-Jacques Rousseau’s The Social Contract are both enlightenment works

Passion And Practicality Of Jane Eyre

1896 words - 8 pages Passion and Practicality of Jane Eyre        Charlotte Bronte's Jane Eyre is a coming-of-age story about an unconventional woman's development within a society of strict rules and expectations. At pivotal moments in Jane's life, she makes choices which are influenced by her emotions and/or her reason. Through the results of those choices, Jane learns to balance passion and practicality to achieve true happiness.   Jane is a

The Political Economy Of Globalization Essay

1180 words - 5 pages can reject or accept any notion of globalization. Globalization has surely made an impact to both developing and developed nations, only causing them to adapt to these circumstances. In “The political economy of Globalization”, Layna Mosely exemplifies the various change and influences made by globalization. Globalization has lifted political boundaries; this is a result of “deliberate decisions by political leaders to embrace more open