Essay 1: Review of
“The illusion of the Epoch: Neoclassical Economics as a Case Study”
Studi e Note di Economia, 14(1): 27-44
Jade Massimi
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When defining The Neoclassical theory of economics, one can describe it as existing
independent of societal relations, independent of time and place, and thus, being of
universalist nature. This also describes the “illusion” being spoken of which can be
explained as completely independent of any other relationship, therefore natural in origin
yet still effective when applied to relationships. When stating “relationships” human
relationships are not the focus, because evidently the human relationship is unnecessary for
this economic theory as this theory would be relevant even when there is not one human to
human relationship or communication (as stated in the article).
To some the “illusion” John F. Henry speaks of may mean truly universal applicability, no
matter what time frame the natural law that has been stated will continue to apply to future
economies, modern or alike. The stating of the natural law is one aspect that seems a bit
uneasy due to the fact that it is based on the general ideology of whoever stated the law
which would then be affected by the bias of that person, or driven by the aim of their work.
A hypothetical description of the illusion is that even though the natural law definer may
reflect a bias or change the direction of the final result it is still said to apply universally, as
long as it is being applied to man. An example from the text stated in similar words:
Though society does not exist, all are “men” thus, all economies are the same. Another
Idea stated in the article to support these opinions is “…all men’s impulses, when
motivated by legitimate self-interest, fall into a harmonious social pattern..” They become
“absolute truths.” The main purpose of making the illusion is to create a system that
eliminates humans completely, that works for any economy regardless of a time period. As
stated in the text: “Akin to natural law, rests on a hypothetical
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Individual undertaking subjectivist calculation; exist independent of societal relations; is
independent of time and place, thus of a universalist nature.”
To address the system of theory that is disconnected from the ‘changing’ reality of society
or economy, the concept of supply and demand is a good example. While it is true that the
relationship and behaviors that the supply and demand curves express are those of humans,
