Is the most unproductive firm the foundation of the most efficient economy? Penrosian learning confronts the neoclassical fallacy

Edith Penrose’s The Theory of the Growth Firm provides an intellectual foundation for a theory innovative enterprise, which is essential to any attempt explain productivity growth, employment opportunity, and income distribution. firm also antidote absurdity that has been taught by PhD economists millions college students over seven decades: most unproductive efficient economy. dissemination this ‘neoclassical fallacy’ mass audience began with Paul A. Samuelson’s textbook, Economics: An Introductory Analysis, first published in 1948. Over decades, neoclassical fallacy persisted through 18 revisions Samuelson, Economics its countless ‘economics principles’ clones. This essay challenges hegemony economics exposing illogic foundational assumptions about how modern economy operates performs. To get beyond fallacy, must be trained ‘historical transformation’ methodology integrates history theory. It serves as both distillation what we have learned from study guide need learn reality ‘present history’ unfolds.