Critique of neoclassical economics

Critique of neoclassical economics points out that it often assumes people have perfect information, rational decision-making, and markets always reach equilibrium. In reality, factors like emotions, misinformation, power imbalances, and external shocks influence economic outcomes. Critics argue these assumptions oversimplify complex human behaviors and ignore inequalities, environmental impacts, and market failures. This can lead to policies that don’t fully address real-world issues, making neoclassical models less reliable for understanding and managing actual economies.