Go to http://www.youtube.com/watch?v=d0nERTFo-Sk and watch this fabulous video made by some fun-loving economists. After you watch it, and you may need to watch it a couple of times, do the following
1. Identify who the two central characters are
2. Describe each man's basic belief about how the government should approach recessions
3. Identify at least two SPECIFIC things each man talks about doing to improve the economy.
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1- Keynes and FA Hayek
ReplyDelete2- Keynes thinks that the market should be steered and FA Hayek says that the market should be set free
3- to improve the markets Keynes says keep spending to get the market better and especially government spending, he says saving is destruction for the economy
- Fa Hayek says that if you keep spending money you don't have it causes debt , savings come first if you want to invest (send money), the cause of the market bust he says is the bad investments people made then causes inflation and no one can pay back the money on their house cars etc , he also says that money is confused with loanable funds then invested in morgaes people cant pay off ( causing debt)
-rh
1.)John Maynard Keynes and F.A. Hayek, the two greatest economist of the 20th century.
ReplyDelete2.) Hayek wants to set markets free so laisse affaire and limited government intervention. He also blames low interest rates. Keynes wants to steer markets through government regulation, which is opposite of Hayek. He blames the animal spirits.
3.)Keynes likes government spending and specifically stimulus packages. he doesn't like saving, but more spending. He also supports public works like digging ditches and stimulus through war.
Hayek wants a free market economy with people investing and saving. He supports capital investments and low interest rates
1) John Keynes and F.A. Hayek
ReplyDelete2) Keynes wanted to steer the markets and have people spend their money in order to stimulate the economy. Hayek desired the opposite of Keynes, He wanted people to save their money and set the markets free.
3) Keynes wanted people to go out and spend their money instead of saving it. He also supports stimulus packages created by the government. Hayek supports low interest rates. He also wanted people to save their money and invest in things wisely.
John Keynes - control or steer the economy in the direction he and others like him think best or animal spirits; if the economy is getting low, more government spending is needed to lift it back up
ReplyDeleteF. A. Hayek - he wants the market to have no interference or set free; low interest rates, human action and motivation need to be taken into account, real saving to invest, market coordinates time and interest, the boom (highest point in national spending) is what one should be worried about, mal-investments are the problem, capital is key, beware of inflation and low interest rates set by the federal government
1. F.A. Hayek and John Keynes
ReplyDelete2. Hayek wants free markets. Keynes prefers to let the government control the economy.
3. Keynes suggests increasing stimulus and people spending in the economy with consumption, investment, government prices, and government exports/imports. Hayek, however, wants people to save to invest and readjust falling prices and unemployment
1. F.A. Hayek and John Keynes
ReplyDelete2. Keynes likes government control, Hayek wants free markets.
3. Keynes wants to increase the stimulus package whereas Hayek wants to have people save and invest there money to boost unemployment.
1. F.A. Hayek & John Keynes
ReplyDelete2. F.A. thinks Free Markets for recession and John Keynes thinks government should control
3.Keynes says people should spend more instead of not. Hayek wants people to save and invest.