Connection between Neoclassical Economics and The Economic Policies of Term Paper

Connection between Neoclassical Economics and The Economic Policies of the President Obama, Psychological Aspect - Term Paper Example This paper is focused on connection of Obama’s proposals and neoclassical economics. A conclusion about Obama’s irrational behavior is made. Consequently, this paper discusses the nature of irrational behavior in economics with regard to current and old behavioral theories in economics. There is also an attempt to continue this kind of research and conduct another study of a broader context. Obama’s Proposals lead to maintaining a neoclassical economic goal: ‘one can improve his/her well-being through increased income to acquire more possessions’ Economic Proposals of Obama concern all social spheres of human life and increase the income of the society in order to reach greater well-being. Public disregard to Obama’s policy and conservatives’ hostile attitude to his politics might be explained by the fact that irrational behavior is less known to the public. Obama’s political course directed on increase of taxes, limitations of small businesses to hire more people; high energetic expenditures through Cap and Trade. FDR and the New Deal were of the main focus for Obama. Further clarifications of Obama’s Proposals may be clarified in accordance with Stigler who claims that economic theories should be considered in accordance with three parameters: congruence with reality, generality, and tractability. Obama’s Proposals partially comply with these parameters. On the one hand, the supporters claim that figures provided by Obama’s government are unrealistic. On the other hand, it is evident that some positive results are reached. Consequently, in the basis of his proposals were realistic assumptions which resulted in realistic predictions. It is possible to consider Obama’s proposals in the paradigm of hedonics theory