Economic Rationalism

Economic rationalism is the belief that people make decisions based on logical reasoning and self-interest, often guided by economic principles. It suggests that individuals and businesses weigh costs and benefits to maximize their welfare. This approach emphasizes markets, competition, and minimal government intervention, arguing that free markets lead to efficient outcomes. Critics, however, highlight that it can overlook social factors, emotions, and inequalities in decision-making. In essence, economic rationalism focuses on how rational calculations shape economic behavior and policies, impacting social and economic systems.