[Marxism] Why were resources expunged from Neo-Classical Economics - Wolf at the FT

Ismail Lagardien ilagardien at yahoo.com
Fri Jul 23 07:43:02 MDT 2010


Why were resources expunged from neo-classical economics?
July 12, 2010 10:38am | Share
Update: Read Martin Wolf’s conclusions on the debate
Something strange happened to economics about a century ago. In moving from 
classical to neo-classical economics — the dominant academic school today — 
economists expunged land — or natural resources. Neo-classical value theory — 
based on marginalism and subjective valuation — still makes a great deal of 
sense. Expunging natural resources from the way economists think about the world 
does not.
In classical economics, land, labour and capital were the three factors of 
production. With neo-classical economics, the standard production function had 
just two factors of production: capital and labour. Land — by which we mean the 
totality of natural resources — was then incorporated into capital.

http://blogs.ft.com/martin-wolf-exchange/2010/07/12/why-were-resources-expunged-from-neo-classical-economics/#more-456


      


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