ECON101- Great Debates: Keynes vs Hayek.docx

Great Debates: Keynes vs Hayek This week we had a very interesting discussion. This week we watching a very fascinating rap video which was titled “"Fight of the Century": Keynes vs. Hayek Rap Battle Round Two.” We al ...

Great Debates: Keynes vs Hayek This week we had a very interesting discussion. This week we watching a very fascinating rap video which was titled “"Fight of the Century": Keynes vs. Hayek Rap Battle Round Two.” We also read some materials which were titled, “Great Debates In Economics: Keynes vs Hayek.” Both the reading materials and rap video was very interesting to read and watch. I think I gained a great amount of knowledge through this week’s discussion and it was very fun and good to learn more. In the reading material titled “Great Debates In Economics: Keynes vs Hayek,” talked about Keynes and Hayek and how they compared and contrasted to one another which led to the great debates in economics. Keynesian economics was developed by British economist John Maynard Keynes. According to Keynes economic theory, higher government expenditure and low taxation result in increased demand for goods and services. This, in turn, can help the country achieve optimal economic performance, and help any economic recession. Keynesian economics harbors the thought that government intervention is essential for the economy to succeed, and it believes that the economic activity is influenced heavily by the decisions made by both the private and the public sector. Keynesian economics places government spending to be the most important in stimulating economic activity; so much so that, even if there was no public spending on goods and services or business investments, the theory states that government spending should be able to spur economic growth. Hayek’s theory of economics evolved around Austrian theory of business cycles, capital and monetary theory. According to Hayek, the main concern for an economy is the manner in which human actions are https://www.coursehero.com/file/35401194/ECON101-Great-Debates-Keynes-vs-Hayekdocx/ This study resource was shared via CourseHero.com coordinated. He argued that markets are unplanned and spontaneous in that markets evolved around human actions and reactions. Hayek’s theories considered the reasons as to why markets failed to coordinate human actions and plans thereby sometimes adversely affecting economic growth and people’s economic prosperity such as causing high levels of unemployment. One of the causes for this that Hayek brought to light was increase in the money supply by the central bank, which in turn increased prices and production levels that resulted in low interest rates. He argued that such artificially low interest rates could cause artificially high investment, resulting in high investment in long term projects in comparison to short term projects causing an economic boom to turn into a recession. Both theories were very interesting to read about and very fascinating as well. The rap video was fun to watch as well. The rap video was a cool and fun way to describe the two economic theories between Hayek and Keynes. Both of their arguments were presented incredibly good. The video was funny and it gave a new look and also gave me a very good understanding of the Keynes and Hayek theories. Overall this discussion was very fun this week. We learned a lot in a very cool and fun way. It was interesting to learn these new theories from these great economists in history. Hello Shelby, I liked your discussion post a lot. I thought you did a lot of good things in your discussion post. I thought you had a great summary of what the reading assignment was. I personally thought the Keynes vs Hayek theories were very interesting to read about. I thought I learned a lot through this discussion. Also I feel like you did a good job reacting to the rap video that we watched it was very good. I thought the Keynes theory was very interesting. According to Keynes economic theory, higher government expenditure and low taxation result in increased demand for goods and services. This, in turn, can help the country achieve optimal economic performance, and help any economic recession. Keynesian economics harbors the thought that https://www.coursehero.com/file/35401194/ECON101-Great-Debates-Keynes-vs-Hayekdocx/ This study resource was shared via CourseHero.com government intervention is essential for the economy to succeed, and it believes that the economic activity is influenced heavily by the decisions made by both the private and the public sector. The Hayek theory was also very interesting as well. Hayek’s theory of economics evolved around Austrian theory of business cycles, capital and monetary theory. According to Hayek, the main concern for an economy is the manner in which human actions are coordinated. He argued that markets are unplanned and spontaneous in that markets evolved around human actions and reactions. Hayek’s theories considered the reasons as to why markets failed to coordinate human actions and plans thereby sometimes adversely affecting economic growth and people’s economic prosperity such as causing high levels of unemployment. Overall I thought you had a lot of good things in your discussion post. Keep up the good work! https://www.coursehero.com/file/35401194/ECON101-Great-Debates-Keynes-vs-Hayekdocx/ This study resource was shared via CourseHero.com Hello Isaac, you had a very good discussion post. I thought you did a very a good job analyzing the materials we had read this week. You had your discussion post very organized as well. You made separate paragraphs for the different topics that you talked about in your post was very good as well. I liked your quote in your opening paragraph, “Both provide very important and influential theories that helped shape our country's fiscal and monetary policies, economic strategies, and resolutions to various economic troubles such as the recession.” I thought it was a very good introduction to your discussion post. I thought both the theories were very influential to my knowledge to read about. According to Keynes economic theory, higher government expenditure and low taxation result in increased demand for goods and services. This, in turn, can help the country achieve optimal economic performance, and help any economic recession. Keynesian economics harbors the thought that government intervention is essential for the economy to succeed, and it believes that the economic activity is influenced heavily by the decisions made by both the private and the public sector. Hayek’s theory of economics evolved around Austrian theory of business cycles, capital and monetary theory. According to Hayek, the main concern for an economy is the manner in which human actions are coordinated. He argued that markets are unplanned and spontaneous in that markets evolved around human actions and reactions. Overall you had a very good discussion post and you analyzed the materials for this week very well. Good job, and keep up the good work.