Neo Classical Economy

In the mainstream society, industry and corporations tends to rely on the method of supply and demand. Neo-classical economics have become the mainstream ideology of many people especially big conglomerates. They believe the more they use and make, the more profits they get. There are many assumptions neoclassical economics rely on such as that individuals maximize utility and firms maximize profits and people act independently on the basis of full and relevant information. Throughout the years, many believed in this system. Why? Because they believed that maximizing on production will raised profits. Although many companies would call these their strengths, it is more to be believed as a weakness. It is a fact that the supply and demand is very high in today's society but what we do not realize is how would we be able to keep sustaining the materials that is being addictively used over these years. This is a very critical issue that needs to be tend to. We see that big companies will do anything (cut more trees, pollute more of the air and water) just to keep up with the supply and demand but they do not see that our future is in an immense effect.

Unlike Neoclassical economics, Ecological economics tend to think other wise. They see that the beliefs of supply and demand as a very close minded approach and highly supports sustainable development. Ecological economics believes that the environment is the main reason us people are living today. If we don't have the environment, we definitely will not survive. Economists main concern is our societies future and its environment around it. Issues concerning that if we keep exploiting the environment without a proper method of maintaining it then our future is at bleak. However the drawback on the ecological economics is that in our society today, many believe that Sustainable development is not being done at all. In fact, the reverse is happening due to high demand of environmental needs. This I believe that the needs are being exploited for individual economic reasons. Wealthy people are wealthier off from increasing environmental degradation but at the same time, poverty is increasing due to being forced to exploit their countries natural resources.

In my own view, Neo-classical economics does not work at all, it may seem to be but we have to think ahead and envision what our future will look like if we keep ignoring the facts that is occurring