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Working Paper No. 55, An Inquiry Into The Assumptions And Tenets Of Neoclassical Economics That Lead Towards Income Inequality, Katharine Nester
Working Paper No. 55, An Inquiry Into The Assumptions And Tenets Of Neoclassical Economics That Lead Towards Income Inequality, Katharine Nester
Working Papers in Economics
This inquiry seeks to establish that key assumptions foundational to Neoclassical Economics contribute towards income inequality. A consideration of the Neoclassical interpretation and assumptions of the laissez-faire approach to market economies opens the inquiry. I examine the economic outcomes that result when the assumptions underpinning the Neoclassical application of laissez-faire are false, as they often are in the real world. The inquiry then turns to the theories and natural “laws” as advanced by Vilfredo Pareto (1848-1923) and John Bates (J. B.) Clark (1847-1938), which were built upon the Neoclassical adaptation of laissez-faire and became canon in the Neoclassical school. Finally, …