Critique of Marginalism

Critique of marginalism challenges the idea that economic decisions are made solely based on small, incremental changes (marginal adjustments). Critics argue this approach overlooks broader factors like social influences, long-term planning, and power dynamics that affect choices. They suggest that focusing only on immediate, marginal benefits or costs can ignore the complexity of real-world economic behavior, which is often shaped by cultural, institutional, and psychological factors. Thus, marginalism may be too narrow to fully explain how individuals and society make economic decisions, especially in complex or non-quantifiable situations.