Metaphysical Presuppositions of Neoclassical Economics

The extent to which neoclassical economics reflects a set of subjective values of enlightenment thinkers, instead of objective facts, and the context in which it operates are usually neglected by scholars. We argue that it is not the articulation of consumer choice problem which is important for neoclassical economics, rather it has a two-fold agenda: (i) to provide a technology in order to legitimize capitalist social order according to liberal values and thereby, (ii) justify the liberal ideals of political philosophy. Thus, we strongly reject the claims of its value-neutrality. Liberal society (as legitimized by neoclassical economists) is represented by a model in which each individual exists in an isolated cell of self-interest maximization connected to the rest of society only through the voluntary relationships based on exchange of goods and services. Self-interested individuation and social harmony are seen as mutually reinforcing and, hence, harmonious. The body is seen as the primary instrument dedicated to the only legitimate objective of accumulation for its own sake. On the basis of such a model, perfect competition finds justification as a system that most nearly meets the desire for accumulation. The formation of government to organize society is undertaken by the infallible general-will of the citizens of a society. The government is supposed to provide a neutral framework within which people can pursue their own preferences based on their own conceptions of the good. The questions of ‘right preferences’ and ‘origin of production technology’ are deliberately kept aside. Policies are advocated to move the actual world to the ideal world of perfect competition.