Neoclassical economics, as conceptualized by Nate Hagens, underscores a framework where economic outcomes are dictated by the interplay of supply and demand, operating through rational actors seeking to optimize utility and profit. This paradigm assumes that individuals act with full knowledge, resources are unlimited, and markets are in equilibrium, efficiently allocating resources. Hagens critiques this model for its oversimplified assumptions, ignoring the complex interplay of energy, ecological constraints, and human behavior, which are critical for a sustainable economic future. In his view, the neoclassical approach lacks integration of biophysical realities and tends to disregard factors such as energy inputs, environmental degradation, and the finite nature of natural resources, which are essential for a holistic understanding of economic systems.

See also: economic growth, fossil fuel, ecological economics, population growth, financial system