Hayek vs. Keynes

Topics: John Maynard Keynes, Great Depression, Ludwig von Mises Pages: 2 (959 words) Published: April 29, 2013
Hayek Vs. Keynes
Friedrich Von Hayek and John Maynard Keynes were very credited economists of the early 1900’s. They both had different ideas on how the government should run regarding capitalism. While Hayek believed that the government should have a laissez-faire type of policy, Keynes did not. He believed that the government should not be involved less and that if anything it should be involved more. Hayek proclaimed his views through a book titled The Road to Serfdom and Keynes’ were expressed through The General Theory of Employment, Interest and Money. Keynes had a better idea on how the government should be involved in the economy. There should never be zero government involvement in this aspect of America. The main view of John Maynard Keynes was shown through his book, The General Theory of Employment, Interest and Money where he challenged Neo-Classical economic paradigm. He believed that laissez-faire was not appropriate for capitalism and that government spending was an essential economic policy for the depressed capitalist economy in order to recover its vitality. He thought that there was no self-correcting property in the market system to keep capitalism growing. His views are correct in my eyes. Government spending is a great way to boost the economy in an attempt to get out of the Great Depression. The economy was not going to just come out of this and be completely fixed on its own. It takes work; and is the way Keynes saw it. He did not agree with the things other economists said, especially Friedrich Von Hayek. Hayek’s beliefs were shown through his book, The Road to Serfdom. He supported the free market and laissez-faire capitalism. He also wrote that the government has a role to play in the economy through the monetary system and that government intervention in markets would lead to the loss of freedom. He was very much against government intervention and even went so far as to say, “too much government means too much government power. Too...

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