Neoclassical economies operate in the notion that consumers are rational. Marginal utility is always considered to be better. It also contends that more the production the better it is for the society. They also assume that the utility factor of the consumers is always rational. Individuals in the society have unlimited needs but the income is limited. Consumption and marginal utility are both interrelated. In the case of Marxism the basic assumptions that have been made are Bourgeois class and the proletariat class is the two kinds of classes in the society. Production is controlled by the capitalist. They in turn control the workers for their sustenance. Income of the nation should be distributed equally. The work wages are determined by the subsistence level of living.
In current times, there is more importance given to the benefits of globalization. There is high competitiveness that has been increased owing to the factors of globalization. In this notion, the production of goods has been celebrated. Self interest has been validated and has been regarded as the key to the growth. However the Marxism theory states that the people in the societies are dependent on the human value. This importance to labor and people in the societies are not considered in the other theories. This inherent gap addressed in this theory shows that this theory of economics cannot be dispensed for other ideologies. Some key aspects that have been probed in the Marxism economies have not been considered in the liberal capitalistic economies. Rationalist stand states that true relationship and the impact of the different theories on the economies are based on the sensory observation of the people. There are immense chooses available to the people and they focus on only one aspect. When the people are confronted with choices there is a problem of choosing between two epistemological theories or rather two theories of truth. In the case of Neo classical economics it states that competitiveness and the means of production are the pragmatic approach in dealing with the situations. The people who advocate for the causes of Marxism in the societies attribute to the fact that these ideologies in the societies are more real because they factor in the human value and the exploitation of workers. They contend that this aspect is more desirable. For each of these theories there are a set of standards and measurements that prove that the ideologies held by both sides are true. However there are some gaps or vulnerability in each of these theories that is answered by the other theory. Ironically alternative theories have their own issues and vulnerabilities that would cause detriment in the societies. People are forced to choose between two kinds of realities of truth of the situation. In this there is a need to develop a newer absolute standard that answers to the requirements of the situation.