Commanding Heights Essay - Shan Rajan Dr Ferreira Economics October 2 2015 Commanding Heights Essay Compare and contrast the economics theories of Hayek

Commanding Heights Essay - Shan Rajan Dr Ferreira Economics...

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Shan Rajan Dr . Ferreira Economics October 2 , 2015 Commanding Heights Essay Compare and contrast the economics theories of Hayek and Keynes . Throughout history , societies and governments have searched frantically for ways to keep their economies on a rising path , and to keep them stable . In the 1900’s two economists emerged , each which his own economic theories . Our recent economics history is based on different countries implementing these theories and analyzing each ones pros and cons . Friedrich Hayek was a free market economist and John Maynard Keynes was in favor of strong government regulation in the economy . Countries have tested both economic theories , and Hayek’s theories have proved to have the most positive outcomes . John Maynard Keynes was an academic from Cambridge University . During World War I , he became an advisor for the British government . He helped them plan how their economy would function during war . The main gist of Keynesian Economics is that government involvement is essential in order to keep the economy running . Government spending is absolutely crucial for job creation . Spending from the government will increase the spending power of the citizens of the country . With the increase of monetary flows in households , money can
flow back into the economy and the people will purchase more goods and services . The end of the Great Depression instilled Keynesian economics in many developing nations as the standard model . Frederick Von Hayek was born in Austria and fought in the first World War .

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