macro compare and contrast (Audrey Kearns1) (Audrey Kearns1) (Audrey Kearns1) (1).docx - John M Keynes and Friedrich Hayek had very contrasting ways of

Macro compare and contrast (Audrey Kearns1) (Audrey Kearns1) (Audrey Kearns1) (1).docx

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John M. Keynes and Friedrich Hayek had very contrasting ways of approaching government spending. To put it simply, Keynes felt that government spending needed to be increased, while Hayek felt that the government needed to stay out of the market. In my opinion; Keynes had a bit more of a socialist approach, which is an ideal society for me, while Hayek took more of a capitalist approach. With such differing views on how to help the economy, the two gentlemen didn’t quite see eye to eye. I am going to compare and contrast their theories and describe why each man feels the way they do about them.John M. Keynes chose to approach government spending in quite a favorable way. He feltthat the proper way to help repair the economy was to increase government spending by way of public works. The government could, for example, start building more roads to give Americans jobs. This would give the people money to spend which would help to keep the economy flowing. Full employment was necessary to for a successful economy, he felt. His message was simple, “you cannot cut your way out of a slump, you have to grow your way out”. (BBC.

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