Economic Theories and Theorists Essay

Two major economic thinkers of the of the early twentieth century, John Maynard Keynes and Friedrich A. Hayek, hold very different economic viewpoints. Keynes is among the most famous economic philosophers. Keynes, who's theories gained a reputation during the Great Depression in the 1930s, focused mainly on an economy's bust. It is where the economy declines and finally bottoms-out, that Keynesian economics believes the answers lie for its eventual recovery. On the other hand, Hayek believed that in studying the boom answers would be provided to lead the economy out of the bust that was sure to follow. Hayek backed the Austrian school of economics.

Classical Liberalism is against government interventionism in all realms of life. They believe that everyone should be treated equally regardless of income. This differs from reform liberalism, as they want government intervention to guarantee equality of opportunity. This is made possible by progressive income tax, government regulation on big business, and social welfare. In My opinion Classical Liberalism is superior as its fair and easier to implement than reform Liberalism.

Liberalism, in general, was an ideological movement that emerged out of the ideas of the Enlightenment and the Industrial Revolution in the early 19th century. It embraced the ideas of individualism which were established in the Renaissance and Reformation era. The Renaissance period sparked a belief in the importance of the individual in society. It helped promote the beliefs of classical liberalism which gradually formed into the liberal ideology of the 19th century. Individuals that were waiting to get their individual rights and freedoms were allowed to finally gain liberty and power through this period of time. Classical liberalism developed

Imagine that you have decided to open a small ice cream stand on campus called "Ice-Campusades." You are very excited because you love ice cream (delicious!) and this is a fun way for you to apply your business and economics skills! Here is the first month's scenario--you order the same number (and the same variety) of ice creams each day from the ice cream suppliers, and your ice creams are always marked at $1.50 each. However, you notice that there are days when ice creams remain unsold but other days when there are not enough ice creams for the number of customers.

Using the data and your own economic knowledge, assess the case for financing universities mainly through charging fees to their students.

Classical liberalism allow an individual to use primary social value of liberty in the political culture that extent until liberties of the others disturbed. Classical liberal ideas often form the basis for opposition to the use of government to attain social and personal objectives. They stress reliance on private the free market to determine the best outcomes rather than the private initiatives [1].

during the 1920s calvin coolidge had a free market system of economics which was ideal for a good economy boom but it was not managed. eventually the wealth was accumulated by business owners and millionaires. When the stock market collapsed herbert hoover believed it would clear up and it did a

The following paper will explore the book, The Road to Serfdom, by F.A. Hayek. I challenge that many of Hayek's assumptions are still valid today even though his book was written in 1944. Hayek's assumptions regarding 1) the government's rule of the law, 2) the concept of government-directed economic activity that includes artificial separation of economics and politics, and 3) the notion that the unscrupulous and uninhibited are likely to be more successful, are still true in today.

Classical Liberalism is an ideology with its focus on individual liberty with a limited government. The belief that an individual should have the freedom to pursue and be responsible for their own life. It stems from an idea that humans, as a whole, are generally good in nature, and that people should have rights apart from the government. These rights include the right to pursue happiness, the right to financial success, or even failure, and the right to free speech and freedom of religion. Individuals have equal opportunities in life, but not equal materialistic beginnings or gains. You had the right to own land, but it was up to the individual to obtain it.

Economic systems are organized way in which a state or nation allocates its resources and apportions goods and services in the national community. An economic system is slackly defined as country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. There are three types of economic systems exist, they are command economy, market economy, and mixed economy. Command economy is also sometimes called planned economy. The expectations of this type of economy is that all major decisions that related to the construction or production, distribution, commodity and service prices are all made by the government. However, in market economy, national and state governments play a

Classical liberalism is the transition from focusing on government to focusing on the rights of individuals. This transition came about during the time of the Enlightenment in the eighteenth century. The Enlightenment period was when man started to have more faith in his own reasoning. People began to look for evidence on their beliefs themselves and to find proof on these beliefs, so that they could come up with their own opinions on things. One way that they did this was by going back and rereading Roman and Greek texts and retranslating these texts. This new way of thinking also caused the Protestant Reformation to occur. Some of the most influential Enlightenment writers were John Locke, Thomas Paine, Thomas Jefferson, and the people of France’s National Constituent Assembly.

As has been mentioned previously, Hayek had an entirely different approach to economics. There have been arguments made that Hayek’s arguments are more related to politics rather than economics, although politics and economics tend to go hand-in-hand. Contrary to Keynes arguments, Hayek believed that artificially low interest rates would only lead to artificially high investment only causing greater issues that would turn an economic boom into a recession (Econedlink). According to the PBS segment on “Commanding Heights”, Hayek had some major concerns about inflation. Hayek believed that inflation was malign and had the potential to weaken a society and democracy (PBS Commanding Heights). Hayek argued that markets are unpredictable and relatable to human influences.

Classical liberalism is an ideology that is usually unfavorable to using authority of the state other than ensuring rights and liberties. Government and individuals agree to protect people’s rights and allow for maximum freedom. Laissez-faire focuses on the liberty of an individual and the lack of social equality. Laissez-faire capitalism is where people are unrestricted to invest in what the prices of services will be, what the produce will sell at. In a modern welfare-state capitalism has influenced our understanding of the terms of the social contract because they practice a system of mixed capitalist that have rules by the government for businesses and marketing.

According to economist Bryan Caplan, by the late twentieth century, a split had developed among those who self-identify with the Austrian School. One group, building on the work of Hayek, follows the broad framework of mainstream neoclassical economics, including its use of mathematical models and general equilibrium, and brings a critical perspective to mainstream methodology merely influenced by the Austrian notions such as the economic calculation problem and the independent role of logical reasoning in developing economic theory.[33]

2. Classical liberalism says that the state should only take over an institution to ensure that citizens can freely benefit from that particular institution’s services. Classical liberalism does not require the thorough enforcing of law and order to reach economic progress and equality.