Neoclassical Economics and Capitalism

  • Chandana Ghosh
  • Ambar Nath Ghosh


This chapter presents the core of neoclassical microeconomics starting with the theory of consumer behaviour and ending with welfare economics. This core of neoclassical microeconomics yields the result that, if allocation of resources is left to market forces, there will take place an optimal or efficient allocation of resources. This result constitutes the basis of the economic policies being followed by the capitalist countries including India today. This chapter develops a critique of this theory and explains why it favours the rich at the expense of the poor. It specifies what the goal of economic policies in a civilized society should be and provides an alternative definition of optimal allocation of resources.


Neoclassical microeconomics Efficient allocation of resources Economics of the rich 

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Chandana Ghosh
    • 1
  • Ambar Nath Ghosh
    • 2
  1. 1.Economic Research UnitIndian Statistical InstituteKolkataIndia
  2. 2.Economics DepartmentJadavpur UniversityKolkataIndia

Personalised recommendations