Modern Western Civ
15 June 2015
Hayek vs Keynes: Economic Policies John Keynes and Friedrich Hayek were famous economists which had far left ideals and the other had a flavor of conservatism. Such men were opposites when it came to the economy and how they should be run and managed. Of course the lef picked Keynes theory while which the other side chose the ladder believed to work best for their economy.
Hayek was the founder of the Austrian School who believed that markets should operate freely and that the economy should have a laissez faire approach. That there should be elimination of state interference, monopolies and total control . While Keynes view was a total
180 degrees from that. That there should be some regulation on how the economy should run by the use of monetary, fiscal and physical means. Hayek’s opinion of his rival’s policies were socialistic while Keynes own opinion that a free flowing economy would spiral out of control.
After World War II European governments mostly in the west took to the Keynesian approach as governments believe that it was their duty to maintain such an economy that was stable overall. It soon shifted to Hayek’s ideas after the 1980s with the weakening and dissolvement of the Soviet Union and then governments realized that they could blend the two together as it would lead to the Great Recession that recently had passed.
It is interesting to see a shift over what