Late Neoclassical Economics as Neoliberal Neurosis

Abstract

This commentary reflects on the potential of Madra's Late Neoclassical Economics for comprehending neoliberalism. Extending Madra's work, it presents an ideology critique of late neoclassical economics (LNE) as articulating a social fantasy of harmonious market order that enables neoliberal proponents to structure their reality against the Real of Capital. Madra's exposition of LNE's orientation around the theoretical problematic of neoclassical humanism enables consideration of neoliberalism as informed by an obsessional neurotic logic, whereby subjects postpone encountering the Real via repeated ideological modifications to preserve their fantasy against traumatic incursions. Exploring the conditions of possibility for functioning markets, LNE reinforces the fantasy of market order through theoretical innovations rationalizing increasingly intensive measures to realize it. Thus, symptoms bleeding through gaps between the Symbolic reality of neolibealism and the Real of Capital are disavowed as market and cognitive failures, foreclosing critical engagement with capitalist dynamics. This is illustrated through examining the new institutional economics of development as disavowing the violence of capitalism.