John Keynes And Friedrich Hayek - 901 Words

John Keynes and Friedrich Hayek where two of the most influential economic minds of the 20th century. Each of these men’s ideas had a great impact on the economy of numerous countries and helped countries find economic success different times. Keynes and Hayek had opposite ideas on what created a working economy that would be successful and avoid economical depressions like that of the United States great depression and the European depressions that resulted from the two World Wars. Keynes believes that the best way to maintain a strong economy was to have government micromanage any and all aspects of the economy. He believes that in order to maintain full employment of citizens, countries must spend money to create jobs and to help struggling companies. Hayes believes that this was not the answer and would only result in more problems. Hayes felt that a market will be able to take care of its self and in order to ensure this government needed to avoid intervention to allow for a free economy to develop. During the time of war Keynes ideas were more successful because the government was able to make a large quantity of jobs for people through goods needed for the war. Since Keynes ideas were so widely used and accepted at this time, Hayek’s ideas were rejected and considered bad because the purposed to do the opposite. After the â€Å"good 30 years† Keynes economic ideas began to show flaws through inflation and unemployment rates. This issue resulted from the restrictionShow MoreRelatedThe Economists Economic Theory Essay770 Words   |  4 PagesEconomics 2 December 2016 The Economists What is the best way to earn money. To entrust on someone else like the government or yourself? Two economists, John Maynard Keynes and Friedrich von Hayek had two contrasting views on how the government should handle the market. Keynes believe on the government controlling the market while Hayek wanted the government to stay away from it. Hayek’s economic theory is right because it focuses on us as citizens to have responsibilities towards our money.Read MoreEssay on John Maynard Keynes Versus Friederich A. Hayek603 Words   |  3 Pagesof the of the early twentieth century, John Maynard Keynes and Friedrich A. Hayek, hold very different economic viewpoints. Keynes is among the most famous economic philosophers. Keynes, whos theories gained a reputation during the Great Depression in the 1930s, focused mainly on an economys bust. It is where the economy declines and finally bottoms-out, that Keynesian economics believes the answers lie for its eventual recovery. On the oth er hand, Hayek believed that in studying the boom answersRead MoreKeynesian Theory And Aggregate Demand1499 Words   |  6 Pageseconomists to ever live, John Maynard Keynes and Friedrich August Hayek. 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John Maynard Keynes an English economist believed that government has responsibility to intervene in an economical crisis whereas, Friedrich Hayek an Austrian-born economist and philosopher believed that the government intervention is worthless and dangerous. According the book, The General Theory of the Employment, Interest and Money, Keynes argues that the level of employment is not determined by the price of labor butRead MoreKayne vs Hayek1370 Words   |  6 PagesChanya Udomphorn ID# 5380040 Macroeconomics Mr. Rattakarn Komonrat Keynes vs. Hayek Macroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of the whole economy. Macroeconomists study aggregated indicators such as GDP, unemployment rates, and price indices to understand how the whole economy functions. They develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflationRead MoreFriedrich a Hayek1632 Words   |  7 PagesRunning head: FRIEDRICH HAYEK 1 Friedrich August Von Hayek Donotra Woods Post University FRIEDRICH HAYEK 2 According to Hayek (1994, p. 168) â€Å"Probably it is true enough that the great majority are rarely capable of thinking independently, that on most questionsRead MoreKeynes Vs Hayek Essay804 Words   |  4 PagesKeynes Versus Hayek The relationship between economists John M. Keynes and Friedrich A. Hayek is quite complex. Both had influential roles in economic studies, emerging after World War II and during the Great Depression era (BBC). It’s important to note that both of these economists had opposing views when it came to economic theories and policies. Briefly summed up, Keynes theories were in support for government involvement in the economy (EconedLink). In contrast, Hayek argued that the governmentRead MoreMy Economic Philosophy1004 Words   |  4 Pagesitself and that government shouldn’t interfere. The most prominent founder of libertarianism is Friedrich August Hayek. Hayek was born in Austria in 1899. He fought in the First World War and lived in Austria during the Nazi Party’s rise to power. He later moved to Britain where he became a professor at the London School of Economics for eighteen years. In the nineteen twenties and thirties, Hayek was concerned with the way social planning was controlling individual’s actions. He believed that