Neoclassical economics depicts capitalism as idealized parody or fairy ballet

Evidence

While the processes we have discussed so far highlight the real warlike nature of competition among capitalists, neoclassical economics has preferred to embrace a gross abstraction, a perfect world of equilibrium in which firms act harmoniously, guided by the invisible hand of the market. As Anwar Shaikh, a prominent economist who has had a profound impact in revitalizing the tradition of classical political economy, puts it, “The capitalism they [neoclassical economists] end up depicting is a parody, purged of all that is dark and destructive, its warlike competition reduced to a fairy ballet.” Elsewhere Shaikh emphasizes, “All the basic tropes of orthodox economics—perfect competition, rational expectations, perfect knowledge of the consumer, no interactions among consumers or firms directly, general equilibrium, optimality, efficiency—all of these concepts are based on this notion of the representation of capitalism as ideal.” — Clara E. Mattei, Escape from Capitalism, 137

Categorization

• DEFINE: Gives the contrast between real competition (warlike, coercive) and perfect competition (harmonious abstraction) that underpins the book’s whole polemic.
• XREF: connects to: Neoclassical economics replaced class analysis with individualistic merit narratives — Clara E. Mattei, Escape from Capitalism: An Intervention, 30; Insect metaphors for human collectivity obscure capitalism’s human costs. — Nick Couldry & Ulises A. Mejias, The Costs of Connection: How Data Is…, 478; Modern economics replaced the class-conflict lens of classical political economy with individualist harmony — Clara E. Mattei, Escape from Capitalism, 30

Broader Connections

• Neoclassical economics replaced class analysis with individualistic merit narratives #expands (0.75) — Clara E. Mattei, Escape from Capitalism, 30
• Insect metaphors for human collectivity obscure capitalism’s human costs. #expands (0.75) — Nick Couldry & Ulises A. Mejias, The Costs of Connection, 478
• Modern economics replaced the class-conflict lens of classical political economy with individualist harmony #expands (0.75) — Clara E. Mattei, Escape from Capitalism, 30