Paradigms of Neoclassical and Political Economy

In our society today, there are great disparities between different groups of people. The gaps exist between those in every segment of the world, from those of different religions or nationalities, those of rich or poor families, to those who may or may not be educated. The ways in which economics and societies intermingle dictates virtually every part of our lives, from what we wear and eat, to what we do and think. To explain these phenomena, there are two main theories: Neoclassical, and Political Economy.
The Neoclassical approach is based on how goods and services are exchanged, and that relationship with supply and demand. Neoclassicism defines a successful market as one with many buyers and sellers, thereby creating competition. The idea being that with sufficient competition the economy will be controlled by market forces, which in turn will disallow corporations or individuals from influencing it. …