The neoclassical economics theory has proven to be durable and the most popularly taught school of modern-day economics. The theories stressed in neoclassical economic teachings fit like a custom-made glove in a world that is increasingly globalized and democratized. Neoclassical economics theory focuses on the micro and individual level of the market, rather than the broader and macro system of economics. As a result, the classic chicken-or-the-egg riddle is asked when looking at the relationship between neoclassical economics theory and individualism in a society: Is it the principles of free market individualism and independent economic influence that shapes the democratization and focus on the individual in a society, or is it open political institutions as well as shifts in cultural attitudes that breed neoclassical economics?
Neoclassical economists invert what has long been assumed by economists and sociologists: while other economists argue that individual behavior is influenced by surrounding economic institutions and social norms, neoclassical economists conclude that to understand a country’s economy requires an understanding of its people. The dimension of individualism attached to the
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