The Economists Economic Theory Essay - 770 Words

Jovanny Ibarra Mr.Nasr Economics 2 December 2016 The Economists What is the best way to earn money. To entrust on someone else like the government or yourself? Two economists, John Maynard Keynes and Friedrich von Hayek had two contrasting views on how the government should handle the market. Keynes believe on the government controlling the market while Hayek wanted the government to stay away from it. Hayek’s economic theory is right because it focuses on us as citizens to have responsibilities towards our money. To be utilized fully in a decentralized market system with free competition and pricing.(1) Then to be able to save money rather keeping money being spent from Keynes’ belief. First, Friedrich Von Hayek was an economist born in Austria. His work was involved with business cycles, the term of periods of growth and decay. Capital theory and monetary theory.(2) He believed that if the government were to stay away from the market, then the business cycles would be removed or at least won’t be having recession. Then there also the problems governments had with the economy such as depressions. If the citizens would had authority towards it, then the money would’ve been spent in different things such as today. U.S spending money on the military rather than education. Hayek accused Keynes of insufficient attention to the nature of capital in production. (3) Meaning the labor that is used for making business. How these investments are being used for keep up with aShow MoreRelatedClassical and Neoclassical Economists: Adam Smith and John Maynard Keynes1289 Words   |  6 PagesIn order to understand how economics really work in today’s age we must think about how those economic ideas, revolutionary theories of many economists, that helped to shape the economic structure as we know it now, through many individuals and school of economic though that has existed through the ages. These schools are â€Å"the mercantilists, the physiocrats, the classical econo mists, Marxian economics, the neoclassical economists and the monetarist economics. For this essay I will only refer toRead MoreMacroeconomic Theories Of Macroeconomics And Classical Economics999 Words   |  4 PagesMacroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. 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