Neoclassical and Socialist Economics: Against Market and Economic Liberalism

Although it appears that neoclassical economics support competitive markets, private property, and limited government and oppose socialism, in practice, however, by emphasizing on mathematical models and static equilibrium in a deterministic way, reach the same conclusion which can be achieved by socialism. In fact, both approaches instead of advocating free operation of economic agents and market process concentrate on equilibrium point and equality of price and marginal cost. Neoclassicals assume the equality of marginal cost and price unrealistic, and market socialists make such equality by giving orders to firms’ managers. The practical conclusion of both approaches is to disregard the nature of economic liberalism and role of entrepreneurship in market process. Therefore, we can conclude that neoclassical and socialist approaches oppose liberalism and economic freedom.