8. Neoliberalism and Homo Oeconomicus

Question 1

What were the two ideal-types of capitalist subjects, according to Max Weber?

Answer 1

1) The protestant
2) The adventurer

Question 2

What is neoliberalism?

Answer 2

An economic and political ideology that emphasizes the virtues of free-market

Question 3

In which century did neoliberalism rise? And what had dominance back then?

Answer 3

20th century, dominance of Keynes, communism, and nazism

Question 4

What are the principles of neoliberalism? And name the characteristics

Answer 4

1) Competition
-> The government must impose competition in order to guarantee efficiency
2) Entrepreneurship
-> Homo oeconomicus as the model of individual behavior
-> Individuals as entrepreneurs of their own lives

Question 5

Give 2 examples of the competition principle

Answer 5

Example 1: privatizing public transport
Example 2: scientific research

Question 6

What are the limits of the homo oeconomicus?

Answer 6

1) Cognitive biases
-> Systematic distortion of reasoning leading to irrational choices
2) Information deficits
-> The future is largely unknowable

Question 7

Give two examples of the cognitive bias

Answer 7

Example 1: confirmation bias
Example 2: implicit racial/gender bias

Question 8

What are the problems of profit?

Answer 8

• Under conditions of perfect market competition and rationality, there is no profit
• Market pressures push back profitability back to zero