A Comparison Between Mainstream Economics and the Economics of Choice
This document provides a non-exhaustive comparison between mainstream economic theory and the Economics of Choice model, which challenges some mainstream cornerstones.
The Economics of Choice model is rooted in the fundamental relationship between time spent at work, natural resources, and the opportunity to pursue happiness. We spend time transforming natural resources into capital, and additional time using that capital to transform additional natural resources into the goods and services that we consume. The opportunity to pursue happiness increases when we successfully spend time increasing productivity or reducing the time it takes to produce goods and services. Two equations summarize the Economics of Choice model. The first equation relates short- and long-term economic growth to how people spend their time. The second equation relates the capacity to consume to labor productivity and relative income.