The Great Simplification with Nate Hagens cover image

Unlearning Economics: Jon Erickson, Josh Farley, Steve Keen, & Kate Raworth | Reality Roundtable #03

The Great Simplification with Nate Hagens

CHAPTER

The Neoclassical Economics of Demand Curves

The real weakness with neoclassical economics is that it doesn't work internally anyway. Students will be drawn to dividing what they call a Hixian compensated demand curve, which necessarily slopes down some time in their first year. If you allow more than one individual with different preferences or more than one good with different characteristics, you can no longer derive a downward-slapping market demand curve. That's the real flaw with the theory. I actually recommended going read a paper by Samuelson,. and by the way, it wasn't Samuelson has said science advances one tree in a little time, it was Max Plank.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner