Nipawin - Tuesday, August 28, 2001 - by: Mario deSantis


"there appear to be so many violations of the condition under which competitive equilibrium exists that it is hard to see why the concept survives, except for the vested interests of the economics profession and the link between prevailing ideology and the conclusions which the theory of general equilibrium provides" -- Paul Ormerod




Under the all pervasive neoclassical economics, as we watch CTV News, owned by the media conglomerate CanWest, we are reminded at least every fifteen minutes of every day, of the wonder of the financial markets and of the latest winners and losers among the biggest corporations.




Our neoclassical economists don't believe in people since they consider people as just a human resource to be allocated proficiently in the free competitive market place. Instead, our neoclassical economists believe in the general equilibrium theory that the free market is the best medium to allocate scarce economic resources. Within this general equilibrium theory all the market forces are free to direct the economy and as a consequence, as the market strives to reach its general equilibrium we experience the voluntary choice for the few and privileged to make more money with money, and the voluntary choice for the most of us either to work harder and harder or to live in poverty.




If for any reasons the economy falters and the GDP numbers are not sufficiently going up, then our neoclassical economists are ready to blame the governmental interventions in the market place. But no matter the GDP numbers, the free market forces cause corporations to become fewer, bigger and more powerful. Therefore, the market becomes the oligopoly of these big corporations with the consequential further loss of our freedom of expression and the inability to participate in the market.
  Related social and economic articles published by Ensign
  The Death of Economics, by Paul Ormerod, John Wiley & Sons, page 66, 1997