Three Core Economic Theories Which Deceive
Channel: Asad Zaman
Date: 2023-04-24

{bit.ly/AZcecp4} This 4th part of "Current Economic Crisis in Pakistan" explains how three core theories of modern economics have no connection to reality. Rather, these theories are designed to justify capitalism, to show that it is just, equitable, and efficient. The three theories are utility maximization for consumers, profit maximization for firms, and supply and demand as the determinant of price. The first theory justifies selishness and greed as rational behavior, while last hides the power of firms to set prices and wages, gouging consumers, and exploiting laborers.