this post was submitted on 06 Jul 2023
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Voluntary exchange is a fundamental assumption in classical economics and neoclassical economics which forms the basis of contemporary mainstream economics.[1] That is, when neoclassical economists theorize about the world, they assume voluntary exchange is taking place. Building on this assumption, neoclassical economics goes on to conclude a variety of important results such as that market activity is efficient, that free trade has net positive effects and that markets in which economic agents participate voluntarily make them better off. Notably, neoclassical economists—baseding the assumption of voluntary exchange—deny the Marxist definition of the exploitation of labour as a possibility within neoclassically defined capitalism.
So in an neoclassic definition that doesn't reflect real world conditions?
A definition cannot he said to match or to not match real world conditions.
Like if I define a square as a quadrilateral with equal sides, that’s independent (orthogonal, even, pun intended) of whether any quadrilaterals with equal sides are around.
I don’t think it makes any sense to talk about whether a definition reflects reality. That’s not really what a definition is. They can’t be true or untrue.
Statements are true or untrue, but for a definition the concept of truth or falsity doesn’t make sense.