Critiques of Conventional Economics

Nabil El Maghrebi (), Abbas Mirakhor (), Tarık Akın and Zamir Iqbal ()
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Nabil El Maghrebi: Wakayama University
Zamir Iqbal: Islamic Development Bank

Chapter Chapter 2 in Revisiting Islamic Economics, 2023, pp 77-112 from Palgrave Macmillan

Abstract: Abstract A brief critical history of political economy and an overview of the science and dogma of neoclassical economics reveals that there are fundamental flaws in the assumptions underlying economic theory. Consumer sovereignty is not consistent with the notion of resource scarcity, as acceptance of the latter logically precludes the former. The rationality postulate holds also a sacrosanct status in neoclassical economics as an empirically irrefutable metaphysical proposition by virtue of ubiquitous self-interest behaviour. Self-interest is taken as self-evident by virtue of the assumptions of economic rationality and resources scarcity, which are, in turn, ascertained as true by virtue of human experience and knowledge from acquaintance. Methodological monism does not admit, indeed, value judgements or references to alternative worldviews, religious beliefs, and moral convictions. Suppressing inconvenient worldviews and ethical beliefs does not promote progress in a subject that is of importance to all humanity. In the absence of a proper understanding of human nature and economic uncertainty, economic theory would have nothing to offer but arid do-nothing policy recommendations.

Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:pal:psibcp:978-3-031-41134-2_2

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DOI: 10.1007/978-3-031-41134-2_2

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