Fear the Boom and Bust:http://www.youtube.com/watch?v=d0nERTFo-Sk
and Part II of the Epic Battle at:
Fight of the Century: http://www.youtube.com/watch?v=GTQnarzmTOc
Identify at least 3 points from either Economist that you agree with. List the point and the video that it came from. Don't copy your classmates responses.
128 comments:
I agree with the economist Hayek, if the government continues to spend money when people are trying to save it, America will end up in debt. I agree that putting money in investments won't always fix the problem and that the economy is more complex than that one equation the Keynes uses. If the government keeps spending money is obviously not free. People will be motivated to get their money back by seeking employment.
Sarah Sultan
Period 4
Swati Kundra - 1st Period
I identify most with Keynes.
1. By keeping the Aggregate Demand growing, the economy will boom. - "Fear the Boom and Bust"
2. Saving will not help, it will only destroy the economy. -"Fear the Boom and Bust"
3. WWII cut the depression short due to all the spending that occurred. - "Fight of the Century"
I agree with the economist Keynes more due to these three points
1) The total of consumption, investment, and government spending (along with net exports although not mentioned in the video) does equal to the the GDP that keeps the economy growing - from "Fear the Boom and Bust"
2) Business is driven by "animal spirits", all businesses want to gain profit in the best way possible by not spending a lot in resources which causes the "boom and bust" cycle- from "Fear the Boom and Bust"
3) All of the spending on WWII for military and warfare caused the GDP in the economy back home to drop dramatically with unemployment rate close to 0%, so the economy didn't thrive at all in that sense - from "Fight of the Century"
-Anne Dang, 4th period
I agree with Keynes because:
1) Keynes believes that if the consumers start spending money, it will make the economy
grow.-"Fight of the Century"
2) Keynes states that taking action in times of depression is important rather than waiting
for it to fix itself.-"Fight of the Century"
3) He also believes that the government should boost aggregate demand at times like
depression.-"Fear the Boom and Bust"
Harshada Kulkarni
1st Period
I agree with Keynes
1. Keeping the economy going with circular flow is important in keeping it sustained(Fear the Boom and Bust).
2. Saving money only serves to destroy the economy, because the economy isn't going anywhere(Fear the Boom and Bust).
3. An uncertain future makes it difficult for free markets to be a stable economic practice(Fight of the Century).
Elwin Mathew
Period 1
1. "Saving is destruction" If we are not spending then our economy will go down as our GDP will decrease as consumers are not buying anything. (Fear the Boom and Bust)
2. "Boom turns to Bust as intrest rates rise" People really think they are getting more money and start spending but in reality the value of their money decreases leading the Boom to Bust. (Fear the Boom and Bust)
3. War does nothing but destroy. Our country should not engage in this activity just to spark the economy. (Fight of the Century)
Sophie Wedgeworth
Period 5
I agree most with Keynes due to his beliefs that:
1. The government must intervene during times of economic depression. Unlike previous thought, the economy cannot just “fix itself”. It needs governmental intervention. “Fear the Boom and the Bust”
2. That raising aggregate demand will promote economy prosperity. The more people spend, the more supply is needed. In the end, the overall GDP will benefit. “Fight of the Century”
3. His take that saving is not beneficial for the economy if the government just keeps on spending. “Fear the Boom and the Bust”
I agree with Hayek because he states that:
1. That government should just get out of the way to handle economic downturn as government interference would only slow down the free market fixing itself. "Fight of The century"
2. Since the economy is essentially we the people, the growth of the economy is relied on production of what people demand, not the government. "Fight of the Century"
3. Spending so much money like Keynes argues for will eventually just put us in a mass debt thus saving is a better option. "Fear the Boom and Bust"
Jestin Raju
4th period
I agree more with Keynes because:
1. Saving money will not spark the economy and that saving more will not increase investment (which would help the economy). "Fear the Boom and Bust"
2. Spending money, whether its by consumers or by the government, helps to drive the economy. "Fight of the Century"
3. World War II, despite the terrible consequences it had, helped end the Great Depression. This is a really good example of how spending can really help to get the economy going. "Fight of the Century"
Natalie Romero
2nd period
Tanmay Shah
Period 2
Hayek and Keynes present equally important points. Hayek's ideology of laissez faire policy is in fact true since supply and price level always balance themselves out. Therefore, in the long run the graph of LRAS is linear and vertical. On the other hand, Keynes' principle also hold true with given circumstances. If an economy is in a long term recession or economic depression then government involvement could revive the economy quickly. Because government controls the supply of money in the economy they can generate higher amount of circulating currency to boost a dampened economy. In my opinion, Keynesian economic principles justify AS and AD through a macroeconomic perspective. As a result, I agree with his policy ideas.
1. Government intervention is a must if the economy lacks proper stimulus, such as lack of circulating money, to boost national economic performance. "Fight of the Century"
2. World War II has a positive impact overall, despite the casualties and social conflicts which arose from the warfare, because it lifted the global economy out of depression. "Fight of the Century"
3. AD and GDP are the most crucial numbers to a nation's economy because it shows total output by a nation. "Fear the Boom and Bust"
Aolin Yang
Period 5
I agree with Keynes because:
1. Like he said, WWII government spending got the economy running again, so that after the war, the economy kept going. The free market did not save itself. "Fight of the Century"
2. When the economy is in a recession, there needs to be a "spark" that keeps the engine going, which is government spending. "Fight of the Century"
3. Savings will only stall the economy, not keep it alive. "Fear the Boom and Bust"
I Agree with Keynes because
1. Spending on war increases GDP. "Fight of the Century"
2. More oversight is needed or else we will get burned."Fight of the Century"
3. Safe intervention can count into depression. "Fight of the Century"
Michael Chan
4th period
I agree with Keynesian economists who argue that government should steer the economy in the right direction (video one). They make a good argument about how classical ideals toward the economy have largely failed in the past, such as with the Great Depression when the economy did not bounce back like classical economists hoped it would. Instead, the continuous laissez faire policy led to persistent unemployment, growing to an all time high of 25%, due to sticky wages (video one). Another point made is that holding money and waiting to spend it will only hurt the economy. Since aggregate demand is the total spending, a large way to get the economy to grow is to increase this demand and, therefore, spending (video one).
Julianna Hastreiter
Period 5
Ali Noorani Period 1
I most identify with Keynes, because in Fight of the century he says that we should spend more money to help the economy and raise GDP. I also believe along with Keynes in Fight of the century that the economy needs a spark to be able to go in the right direction. Also, a third point he makes in Fight of the century that I agree with is that state intervention can counter depression.
I agree with Hayek because.
1. As he states in Fight of the Century, we use scarce resources even more when there is a war, especially for building tanks or other weaponry.
2. As Hayek states in Fear the Boom and Bust, malinvestments can severely wreck our economy, as they are wrong investments in the wrong lines of investment.
3. Lastly, as Hayek states that even though we have many people who participate in wars against other nations, we may have full employment, but the nation's resources will be directed towards the many soldiers, but nothing left for the civilians.
-Rithvik Bommareddy, 4th Period
Housna Kadrie
Period 2
I agree with Keynes because
1. Keynes stated that to get a nation out of depression government must boost aggregate demand. He says that government spending is how to get a nation out of depression. From "Fear the boom and bust"
2. Keynes says that saving does not help the economy, rather we should spend. He says spending is the way out because if you give someone money they can spend it on something else and distribute the wealth to others. A dollar spent has more than a dollar effect. From "fear the boom and bust"
3. A little money spent can cause the economy to flourish, it just needs some money spent to get it running. He says that we can not do nothing and wait for the economy to come back by itself. Something must be done. From "Fight of the century"
I agree with Keynes because...
1. A government can recover the economy from depression if it increases government spending and consumer buying power.
2. Recession can occur if demand falls. if demand increases then there would be an expansion which means an increase in GDP.
3. Government fiscal policy can help maintain aggregate demand at a constant level of full employment.
Ayana Mathew
4th Period
I agree with Hayek,
a) Governments should not interfere with market issues because they resolve themselves as prices all move towards equilibrium.
b) Full employment is not possible because opportunity is scarce and cannot be forced, we cannot break the window just to make sure that the repair man has a job.
c) The goal of people in a capitalist system is the accumulation of wealth and distribution of work, thus measures of austerity imposed by the government are bad because they stop consumers from consuming as much as they want driving demand down.
Kedar Pandya - 2nd Period
Keynes's ideal of government intervention in economics is most realistic and is most similar to the government we have today. Thus, I agree with Keynes more than Hayek because...
1. When the government uses countercyclical fiscal policies during expansion and contraction periods, it is true how saving money offsets the practices of trying to create a more predictable economy from the fiscal policies. Saving provides more income to the buyer, but saving decreases consumption, and thus decreasing aggregate demand of the economy. If no one buys anything, then the GDP would significantly drop. (Fear the Boom and Bus)
2. It is true that we are not spending enough to cut down the unemployment, and I also agree that it's impossible to spend as much in peace time compared to war times like he said in 2nd video. If there is a draft, indeed the unemployment would be near zero, and that helps the economy. (Fight of the Century)
3.Government regulation is needed because the free market is very easy to fail, and the government should control the economy to the extent to make sure that it does not. Hayek's belief that no recessions would occur if firms followed his principles is illogical because the business cycle will always fluctuate, and using fiscal policies can help make a more predictable economy to prepare for recessions and expansions. (Fight of the Century)
Jun Hin Loi
Period 4
Ashish Singh
Period 1
I agree with Hayek on the idea that the market is organic and is not on a set cycle ("Fight of the Century"). I also agree with Hayek on the point that entrepreneurship produces long lasting growth ("Fight of the Century"). One point I agree on with Keynes is the belief that sticky wages caused the Great Depression in 1929 ("Fear the Boom and Bust").
Waseem Khalil
P4
I agree with Keynes
1) Laissez-faire economy did not work. The government needed to intervene and cause aggregate demand to rise artificially. - Fear the Boom and Bust
2)"So if the flow is getting low, it doesn't matter the reason. We need more government spending, now it's stimulus season." - Fear the Boom and Bust
3) If the economy is low, we need to intervene to get it to rise rather than just let the complex world do it's thing. - Fight of the Century
Pamela Gheriafi
Period 4
I agree with Hayek
Real savings help people invest in the future and spending instead of saving might boost aggregate demand but they will be malinvestments . "Fear the Boom and Bust"
The boom will turn into bust and inflation rates are going to rise. It will also lead to devalued capital. "Fear the Boom and Bust"
Capitalism is about profit and loss. "Fight of the Century"
I identify most with Keynes.
1. If you keep the Aggregate Demand growing, the economy will boom. - "Fear the Boom and Bust"
2. Saving money won't help it will only destroy the economy. -"Fear the Boom and Bust"
3. WWII cut the depression short due to all the spending that occurred in getting war materials into the hands of American Soldiers . - "Fight of the Century"
Jordan Jacobson
Period 2
I agree most with Keynes.
1. Boosting the aggregate demand increases the GDP
2.Keynes believed steering the economy is necessarily in times of depression
3. Spending increases the economy more than low interest rates do
Epstein Jacob
Period 4
Kyuri Baag
Period 4
I identify most with Hayek.
1) Savings and consumption are not real through Keynes's theory. Even resources will turn out to not be that much. So the boom eventually becomes bust because interest rates will rise. In the end, the prices signals turn out to be false and we are left with devalued capital. ("Fear the Boom and Bust")
2) Keynes's equation that relies heavy on too much aggregation does not consider how people actually act and feel motivated. Even though Keynes's theory sounds effective, the end result is nothing but debt. ("Fear the Boom and Bust")
3) We need stable rules and real market prices to let prosperity emerge and to cut crisis short. ("Fight of the Century")
Jyotis Joy
Period 5
I identify most with Hayek
1. During times of depression, government should not try to restore full employment but should lower taxes, reduce spending on goods and services, and encourage private entrepreneurs.
2.when the economy is down, the government should get out of the way and let the private businesses bring it back up on their own accord more efficiently and quicker than government intervention.
3. bad investments wreck the economy
Shiv Patel
Period 2
I identify more with Keynes.
1) The government can stimulate growth through government speding during times when the economy is bad in order to boost aggregate demand, such as when the U.S. government did due to the Great Depression, when the free market economy did not fix itself (Fear of the Boom and Bust).
2) We must spend money to increase our capital because if we keep money in our pockets, it will not grow, thus hindering the economy from growing (Fear the Boom and Bust).
3) More government involvement is needed in the economy to ensure the legality and the reduction of corruption, if we want to prevent a situation like the Great Depression from reoccurring (Fight of the Century).
Janice Wilson
Per.5
I identify more with Hayek
1. Keynes' theory conceals the mechanics of change and his supposedly "simple" equation ignores human action and motivation, but it continues as a justification for bailouts and payoffs by politicians with secret schemes. (Fear of the Boom and Bust)
2. Wars only destroy the economy because there is no multiplier and consumptions shrinks as rare resources are used for military artillery.(Fight of the Century)
3. Jobs are a means, not the end in themselves because people work to live better, to put food on the shelves. Real economic growth means the production of what people demand. (Fight of the Century)
I agree with Hayek.
1. Hayek says that to understand recession, you have to analyze the boom and bust concept.This concept allows stability and well being-in the economy, which is better than the fluctuations of the business cycle. ("Fear the Boom and Bust")
2. A lowering of interest rates gives the illusion of more credit, which leads to an increase in inflation.("Fear the Boom and Bust")
3. The economy is a result of people's decisions, and the actions of real people cannot be simply controlled by the government. ("Fight of the Century")
Raoof Ali
Period 5
Erin Randle
Period 5
I agree with Keynes.
1. World War II did cut the depression which proves we need more government spending.
("Fight of the Century")
2. Free markets are prone to fail and wee need more discretion so state intervention can count against the depression. ("Fight of the Century")
3.When the economy is down people do usually wait until somethings happens which is not the best solution. They should be out spending. Which Keynes explained. ("Fear the Boom and Bust")
I agree with Hayek;
1. Although the war, seemed good for the economy it actually wasn’t most of our resources went into building weapons of mass destruction while little went into consumer goods to feed the population. Full employment in the war lowers production in other places such as clothing.(“Fight of the Century”)
2. Diagnosising some some sectors being unhealthy isn’t a health indicator of the economy because some sectors are healthy and doing fine.We just have to let the economy organically fix itself instead of trying to spark it.(“Fight of the Century “)
3. We shouldn’t bail out companies that go bankrupt or are losing money. To let the economy work. We must let there be a loss instead of the cost of saving broke companies and the government being manipulated by these companies.(“Fight of the Century”)
Mia Harris
2nd pd
Josie Henry
Period 4
I agree with Hayek more than Keynes because of his statements made in the videos.
1.There was no multiplier during World War II, consumption just shrank as scarce resources were used for machinery. That is not prosperity. ("Fight of the Century")
2. Real savings come first if you want to invest, the market coordinates time with interest.("Fear the Boom and Bust")
3. Real growth means the production of what people demand, that is entrepreneurship. ("Fight of the Century")
Anna Mayzenberg
5th Period
I agree with Hayek more than Keynes
1. Keynes' theory ignores human action and motivation in that it works theoretically but it does not necessarily play out the way that he expects, because people like to save. (round one)
2. We can never get rid of the ginormous amount of government debt that we live with and that constantly grows if we continue to use spending to boost the economy when it is low. (round one)
3. The economy cannot be regulated by something simple like a "circular flow," as it is very complex and things change frequently. You cannot simply decide on one theory and argue that it applies to everything effectively. (round two)
Ambareen Virani
Period 4
I identify more with Keynes.
1. Keynes' theory helped get the economy out of depression. (Fight of the Century)
2. Keynes' theory calls for action while Hayek's theory is a waiting game for the economy to reach equilibrium. (Fight of the Century)
3. Spending money is essential as it will help grow our capital and economy. (Fear the Boom and Bust)
Rendon Reinarz
5th Period
I agree with Keynes
1. After the stock market crash in 1929, the economy did not bounce back like it always had. People continued to wait because they believed the free market would eventually have to recover, but it never did until people started spending again.
2. Keynes argues that spending helps stimulate the economy which is true. During World War II, the economy was forced to start spending in order to produce weapons, machinery, and technology. This increase in spending and productions is what ultimately pulled the United States out of the Great Depression.
3. The economy cannot always steer itself. When laissez-faire failed, government intervention was needed to stimulate the economy. The government helps keep the economy from falling deeply into recessions.
I agree with Keynes more
1. Spending money is what helps the economy. (broken glass example round 1)
2. Governments spending is the spark that can get the economy moving, because waiting will just prolong the economic downtime. (Round 2)
3. By having the government and central bank stimulate the market, demand is created for a nation's resources, helping a depressed economy back to full employment. (Round 2)
Lauren Chamberlin
5th Period
I agree more with Keynes
1. Keynes mentioned how in the Great Depression to end it there needed to be that spark of spending in money to revitalize it, and that makes sense because the economy at the time was not fixing it. It took the start of WWII for the depression to end. (Fight of the Century)
2. Saving money is also a huge cause for the issues in the economy as Keynes argues. By not allowing circulation of money in the economy, it only hurts and leads towards economic downturn whether big or small. (Fear the Boom and Bust)
3. Keynes argued that free markets are prone to failure, so in those times of depression/ recession there needs to be a safeguard of government spending to help the economy as it falls. (Fear the Boom and Bust)
Jeff Kue
2nd period
I agree with Hayek more than Keynes because:
1. Based upon how the economy has functioned and crashed over the many years, the one lesson that we have learned is that the importance of free market. The economic ideology of Adam Smith since the beginning of the study of economics has always been focused on the idea of very limited government action. (The debate continues)
2. In the video (part 2) they both bring up very interesting points about how how the world wars affected the economies. While Keynes brought up the point that it took massive government spending during the war, Hayek emphasized how it was also based upon the spending of the free market and that the “economy is organic”
3. Hayek emphasizes how although we preach about free market, the fact that we bring pay out the companies which are failing is a quality of the economy which we should not do. Limited government interference makes more sense to me, as the logic of fighting against the free market just does not sound like a good idea to me.
Both economists make excellent points, yet the underlining truth of free market will always rule out government interference, and thus Keynes’ argument.
Jenina Bianty
5th
I agree with Keynes.
1. Workers' earnings that doesn't adjust to the economy is part of what influences the high unemployment rate (fear the boom and bust).
2. Savings will not help the economy but rather hurt it as there is no vitality in the market (Fear the boom and bust).
3. State intervention is necessary if the economy is trapped in a depression.(Fight of century).
I agree with Hayek because:
1. He states that if people create the market prices they deem reasonable and set rules that will stabilize the economy, then the economy will rise, which reflects off of Laissez-faire. (fight of the century)
2. Hayek makes a point that through government assistance, they are just spending just to get the economy going, but not towards the most demanded supplies. (fight of the century)
3. He explains that if government intervenes with too much spending, it will reduce motivation that will ultimately lead the economy to debt because people are not working as hard to earn money while the government continues to support the economy. (fear the boom and bust)
Matthew Yee Period 1
Camille Trusclair 1st period
I agree with Keynes and his theory.
1. The Great Depression truly only came to an end because of the Second World War, which boosted the economy with government spending. (Fight of the Century)
2. Because the G is in the equation to find the real GDP of the economy, increasing government spending would increase aggregate demand. (Fear the Boom and Bust)
3. Saving money in our economy makes the economy worse in the future. Lowering interest rates would encourage spending, which is good for the economy. (Fight of the Century)
Jacob Rice 1st period
I agree with Keynes.
1. Wars are a big boost in our economy because the government spends the most during those times. (Fight of the Century)
2. Fiscal and Monetary Policies are needed in the government to help with government spending because if you increase this, you increase aggregate demand. (Fear the Boom and the Bust)
3. With sticky wages in the economy during recessions, waiting for the economy to fix itself would not help and it would worsen the economy in the long run. (Fear the Boom and the Bust)
I agree with Keynes economic theory-
1. Keynes mentioned the fact that the end of the Great Depression was caused by the increase in government spending during war. This shows that increased government spending in turn can stimulate the economy. (Fight of the Century)
2. Keynes says that saving money can in turn harm the economy, because there is less money in the economy, with less spending. Furthermore, more spending revitalizes the economy. (Fear the Boom and Bust).
3. Increased AD= Increased GDP. This fact can be seen through various economic models. (Fear the Boom and Bust)
Taryn Gheen
Period: 5
Cassie De Leon 4th period
I agree with Hayek more
1. While Keynes talks about spending more in order to boost aggregate demand, Hayek states how capital structure is more important. All the spending that Keynes says is just how new money will become confused with real, actual funds, which is just inflation growing. Hayek also states how this will cause savings to be low, consumption to be too high, and resources aren't enough. (Fear the Boom and Bust video).
2. I also agree with how Hayek says how we should save in order to invest or else it could result in a depressed economy. All the price signals would not have been true from all the spending and will also result in devalued capital. (Fear the Boom and Bust video).
3. I also agree with how Hayek says spending is not free. He also gives insight on how he desires real growth and how political incentives aren't great influences on people. We need stable rules and actual market prices in order for prosperity to come. (Fight of the Century).
I agree with Keynes
1. Saving money is bad for the economy. Spending money stimulates it. (Fear the Boom and Bust)
2. Government spending benefits the economy as seen in WW2 government spending that ended the Great Depression. (Fight of the Century)
3. Government intervention in necessary, because the future economy is uncertain, therefore free markets will fail on their own. (Fight of the Century)
Marcus Ellis
Period 1
I agree with Keynes
1. Increasing consumer spending, income, and government spending will help our economy grow. (Fear the Boom and Bust)
2. The start of the WWII caused the depression to end. (Fight of the Century)
3. Keynesian's theory helped us get out of 2008 recession. (Fight of the Century)
Jibin Philip
2nd Period
I agree mostly with Hayes because,
1) The economy does not have one solution, as Keynes keeps on claiming that it is spending. Spending is only helpful to the economy when that spending benefits all the people, but a lot of the time the government gains benefit and people continue to stay unemployed. The world is complex and during times of depression and regression, there isn't one solution, Keynes plan might have worked during his time, but just like Hayek said, it doesn't guarantee success later. (FIGHT OF THE CENTURY)
2) When there is government intervention, things tend to go wrong. (FEAR THE BOOM AND BUST)
3) Because of the business cycle, spending a lot can actually lead to a fall in the future, especially because no one actually knows where the point of increasing government spending lies. So saving isn't a bad idea, because then you always have investment, and if a depression occurs, then the value you saved can save you yourself. ( FEAR THE BOOM AND BUST)
Meryem Pecen
1st Period
Hayek*
Lauryn Weller
4th period
I agree with Keynes
1. As we can see in the example of the Great Depression, you can not always just sit around and wait. Instead you need to take action and have a plan and Keynes does this. He believes in boosting aggregate demand by increasing the spending of many groups to help the economy bounce back in its feet and grow. (Fear of the Boom and Bust).
2.Keynes also believes in the idea that saving is not beneficial to the economy because it prohibits the natural circular flow of the economy allowing it to expand and grow, while spending stimulates it. (Fear of the Boom and Bust).
3. In addition, spending and changing the down ward motion of the GDP also decreases the number of unemployment which then helps many Americans and business around the nation ending in an overall positive impact to our economy as a whole with more people putting in. ( Fight of the Century).
I agree with Hayek that:
1.)When there is an excess of spending, it does not produce a positive outcome, because the only ones benefitting are those who are higher in class (the few at the top).- Fight of the Century
2.)When spending, it does not equally benefit all sectors but makes only certain sections if the government healthier. -Fight of the Century
3.)When the country is going through war, full employment does not necessarily mean that all demand is satisfied.- Fight of the Century
Ashel Jaimon
Period 4
I agree with Heyek
1. Economic boom starts with expansion of credit. (Fear the Boom and Bust)
2. When inflation is growing, savings aren't "real", and consumption is up as well. (Fear the Boom and Bust)
3. If we don't steer the prices, they'll go crazy. (Fight of the Century)
Kevin Yu
2nd Period
I agree with Hayek because
1. The only way for the economgy to reutrn from a recession is through adequate spending as well as a reuturn to sustainable production line, where boom-era type of products are removed since they only give in easy money.
2. He also decides that Keynes's equation doesn't factor in things such as human action and motivation as all it really does is forget about who makes the investment and how much inflation controls everything.
3. Lastly since almost all the new money the government created has gone to shore up the balance sheets of irresponsible bankers. The Banks now has a stockpile of idle cash while other business suffer and new one cannot sprout.
Jono Joseph 5th
Michelle Phan
5th Period
I agree with Keynes
1. Keynes argued about how necessary it is for the consumer to increase their own spending and the government spending in order to keep growing our economy, therefore saving money is bad for the economy, because there is less money going meaning less income for people. (Fear the Boom and Bust)
2. Keynes talks about how increasing government spending is the reason why the Great Depression was able to end because if the government did nothing and just waited for the market to naturally bounce back, it would take forever. Also with sticky wages, waiting for something to happen would just worsen the economy, so government interference is necessary. (Fear the Boom and Bust)
3. The economy does better when we are spending more, which only occurs during wars, but when it did it showed since WWII cut short the depression. The spending on war made unemployment close down to 0% and increased GDP.
Natalie Dye, 5th period
I agree with Hayek because:
1. Economists can be biased in their Keynesian models and make the data fit the model. Additionally, data points that do support Keynes like World War II can be argued because it only improved the economy because people were drafted and food was rationed but we were not actually thriving.
2. Savings are good for the economy and individuals because of interest rates. The economy is organic, not artificial, which means it is run by people and what they demand.
3. Government provided goods only cause debt which cause them to print more money and borrow more which only increases the debt into a never ending cycle. Bad because inflation is confused for real money.
The Keynesian approach seems more practical in our economy.
1. It is Keynesian economic policies that have helped the economy out of the Great Recession.This proves that government intervention is indeed effective in stimulating economic growth. ( Fight of The Century.)
2. Economic downturns have appeared time and again throughout the history of economics. This has almost always caused the industry to cut production and lay off workers, resulting in less than full employment-output. The Hayekian theory that lower wages would keep outputs constant does not seem to be the case. Instead, government policies are what usually what helps the economy. (Fear the Boom and Bust)
3. It is clear that WWII has resulted in the post-war prosperity of the United States. More spending during this time period is the reason behind this expansion. This also supports the Keynesian theory that more economic output is generated through increased spending. (Fight of the Century.)
Rakesh Johny
Period.1
Dominic Kochen 1st Period
While both economists approaches can be found valid in some points, I agree more with Hayek than Keynes for a few reasons.
1. He points out that increased government spending and government programs create incentives that cause people to avoid working. Programs like welfare used to stimulate the economy can promote laziness and the economy can only be boosted so much by its own programs.
2. Hayek argues that mal invested practice causes for busts in the economy. This is very true and can be observed in the 2008 housing market crash.
3. Hayek claims that WW2 did not benefit the economy's employment rates and people were merely forced to join the draft and fight for the country. He also points out that while the unemployment was almost zero they had to ration food and other things because so many people were fighting that they didn't have enough people at home providing the necessary resources.
Luke Matthews - Period 2
I agree with Keynes because:
1. Spending money is what helps grow the economy(broken glass ex)
2. By having the government and central bank stimulate the market, demand is created for a nation's resources, helping a depressed economy back to full employment.
3. Governments spending is the spark that can get the economy moving, because waiting will just prolong the economic downtime.
Radhika Daru
period 5
I agree with Hayek because:
1. He brings up the good point that people need to save money in order to better invest in the future as it is because of poor investments that the economy has downfalls. (Fear the Booms and Busts)
2. Hayek also brings up the idea that the economy is not a simple cycle as Keynes would have people believe, but rather a complex system, and, in order to truly boost the economy, we as the general people must break free of any cyclic behaviors that the constant spending of money as Keynes suggests would create and instead save money. (Fight of the Century)
3. Further, Hayek points out that the problem with constant government spending to boost the economy, the keypoint of Keynes' logic, is that the new money pumped into the markets is falsely perceived as real spending power by the general public, thus leading to inflation, which eventually leads to consumption rates to high for production to match, which raises interest rates severely, thereby inevitably hindering and hurting the economy rather than aiding in its recouperation. (Fear the Boom and the Bust)
Kriti Bansal
Period 5
I agree with Hayek because:
1. He says that the truth is that the economy can thrive due to multiple reasons. Whilst the data from WW2 favors Keynes, the economy only improved because people were drafted and food was rationed. It can therefore be inferred that Keynesian models can be biased as economists. (Fight of the Century)
2. Hayek also points out that Keynes equation forgets to take into account how much inflations controls everything. It doesn't factor in some extremely important factors such as people's motivation and their actions. These factors can really change how an economy functions.(Fear the Boom and Bust)
3. Government spending and involvement doesn't guarantee the improvement of the overall economy. Often some sectors of the economy benefit more than others, and often an unintended consequence is that people become lazy and don't have an incentive to work towards. (Fight of the Century)
I personally agree more with Hayek than Keynes.
1. Laissez-faire economy is more efficient than a government regulated economy.
2. The people make up the economy, hence the economy being organic. There is no need for a "mechanic" to fix the economy. we will adapt and become more efficient on our own as time passes by(evolution).
3. As shown through the world war 2 example, full employment does not necessarily mean that the economy is prospering, as during ww2, full employment led to rationing of supplies and drafting for the war.
I agree with Keynes b/c
1. the economy will boom if the Aggregate Demand is allowed to grow
2. saving money won't spark the economy or increase investment
3. an increase in demand would increase GDP because it would cause an expansion
Sarika Vura
1st Period
I believe that Keynes doctrines are the closest to correct, but the lack of qualifications to his statements keep him from being imperically correct.
1) Keynes principle of demand management is ideal for limiting the effects of recession, but failure to balance the national debt during expansions (because politicians are too stupid and selfish to do anything for the benefit of the country) will eventually be rectified when no one will allow the government to borrow money. Basically, Keynes’s principles have destroyed the government’s credit and may cause an extreme recession, war, etc. when the government fails to meet its financial needs. “Fear the Boom and Bust”
2) It is also true that production decreases as demand decreases. This trend is likely due to the perception of scarce resources among consumers. “Fear the Boom and Bust”
3) I agree with Hayek on the principle that ongoing deficit spending will be the long term destruction of an economy. “Fight of the Century”
Matthew Whaley
Period 4
Jackson Stanley | Period 4
I agree most with the Keynesian stance on Economics, because:
1.) Waiting by the government and saving by the people during economic depression will only make monetary conditions worse (Fear the Boom and the Bust).
2.) In the Great Depression, the reason for persistent unemployment was "sticky wages," while Hayek claims that lowering wages temporarily is fine, even necessary, during periods of recession. If one doesn't actively raise aggregate demand through methods like government spending/stimuli, relying on the unpredictable nature of people (as unfortunately, they do not all have good hearts like Hayek assumes) and "setting the economy free" will ultimately fail (Fear the Boom and the Bust).
3.) While the economy cannot be defined as simply as the car/engine metaphor Keynes presents, his reference to the necessary "quick spark" is accurate. In fact, Keynes' theory has an an element of freedom in it as well, but the urgency to have some stimulus begin that process is too significant to simply ignore. I would very much like to believe that the economy and its people should be left to discover "how it can serve one another," but the cold truth is that some people are self-focused in their endeavors. (Fight of the Century).
Elizabeth Stech
Period 4
I agree with Keyne's claims.
1) Saving money inhibits the growth of the economy. ("Fear the Boom and Bust")
2) The government should intervene in times of economic trouble and drought. ("Fear the Boom and Bust")
3) The unpredictability of the economy points to the idea that free markets are not ideal. ("Fight of the Century")
Kale Wicks
Period 4
I personally identify with Keynes, based off the fact that Hayek's idea of having no government interference and leaving everything to free market economy is less likely to have impact. If an economy is in a harsh depression with no way of getting out due to inability to produce there's (almost) no chance of it to get itself out without any help from the government.(And if it did, it most likely would lead to anarchy as we see a lack of need for the gov.)
However I do agree with Hayek in that:
1 - Keynesian economics is extremely short sighted. Without careful consideration of the future it's very likely that the same problem will happen again.(Fear the Boom and Bust)
2 - We also can't depend on events like war to produce more economic opportunity.(Fight of the Century)
3 - Keynesian economics will eventually lead to a loss in the strength of our currency through repetition. The value of our dollar is part of what makes us such a global economic presence. If that were to lose it's value we would lose support and allies as a nation on a global scale.(Fear the Boom and Bust)
Alvin Yolanda Ewaldo
Period 1
Although Hayek made some great points, I agree most with Keynes
1) Spending is a motor that drives the economy (Keynes - Fight of the Century)
2) The government should aid the economy when it's experiencing a downfall where it needs its help (Hayek - Fear the boom and bust)
3) Inflation can also mean that the consumers are spending (Hayek - Fear the boom and bust)
I agree mostly with Keynes' beliefs:
1. World War II helped end the Great Depression because it reduced unemployment greatly. (Fight of the Century)
2. Saving does not promote growth. (Fear the Boom and the Bust)
3. Spending more helps the economy and encourages growth. (Fight of the Century)
Crystal Obaretin
Period 1
Jubin Joseph
Period 5
I agree more with Keynes.
1) The government can creaate growth through government spending in times when the economy is suffering to boost aggregate demand. An example of this would be what the U.S. government did during to the Great Depression, as the free market economy did not fix itself (Fear of the Boom and Bust).
2) We must spend money to increase our capital because by keeping money in our pockets, the economy will not grow. (Fear the Boom and Bust).
3) More government involvement is needed in the economy to ensure the reduction of corruption, in the case of wanting to prevent a situation like the Great Depression from reoccurring (Fight of the Century)
Danni Hertel
Period 1
While I agree and disagree with points made by each economists, I agree mostly with Hayek.
1. Hayek believes that savings benefit the people of the economy and the economy itself because interest rates help it. Because the economy is ran by the demand of people, it cannot be made into one thing or another.
2. World War II was an example of how full employment does not mean that the economy is growing and flourishing. During the time of World War II, rationing of supplies and drafting people into the army were the consequences of full employment.
3. To keep from having a depressed economy, people should save and invest as opposed to spending money, which could have a consequence of a devalued capital.
I agree with Keynes because:
1. When the economy is crashing we shouldn't just wait for it to repair itself. We should increase C,I,G, and Xn in order to increase GDP.(fear the boom and bust)
2.Instead of saving we should spend and increase circular flow to keep the economy strong.(fear the boom and bust)
3. World War 2 brought an end to the great depression as spending increased and unemployment decreased.
Period-1
Shane Samuel
1st Period
Although both Keynes and Hayek presented valid points, I agree more with Keynes
- Keynes is correct in the fact that the world revolves around money and if the flow disrupted in any form of way, it would eventually lead to depression (depending on the circumstances), Therefore we need more government spending (stimulus). So, we must forget about saving for that would ultimately lead to our destruction because it is a paradox of thrift, for that growth of money will never lift and will ultimately effect capital investment, income, and growth. That is why state should fill the gap with stimulus that are both monetary and fiscal. (Fear the Boom and Bust)
-The spending of war did indeed “goose” GDP in efforts to contribute to the war by proving supplies. (Fight of the Century)
-The future's uncertain, our outlooks are frail, that’s why free markets are so prone to fail. In a more volatile world, we need more discretion, so state intervention can counter depression and help boost the economy. (Fight of the Century)
I agree with Keynes because:
1. When the economy is contracting we shouldn't just wait for it to mend itself. We should increase C,I,G, and Xn in order to increase GDP.(Fear the Boom and Bust)
2. Saving does not promote growth. (Fear the Boom and the Bust)
3. An increase in demand would increase GDP because it would cause an expansionary phase of a buisness cycle
William Anderson
period2
Madison Panetti
Period 5
I agree more with Keynes
1. Saving hinders the economy. People have to spend money so that the money they put into the economy gets redistributed. (Fear of Boom and Bust)
2. The government must intervene in times of economic depression. The economy can not just fix itself without any action. (Fear of Boom and Bust)
3. WWII helped end the Great Depression because it put people to work to meet the lever of production needed to fight the war. (Fight of the Century)
Raina Abraham
5th Period
I agree more with Keynes
1. the prosperity of US after World War II led to expansion which goes along with his theory (fight of the century)
2. there should be government involvement when there is dought in society (fear the boom and bust)
3. waiting for the economy to resolve its problems when it is in a recession will lead to more negative consequences (fear the boom and bust)
Aylin Sanchez
2nd Period
In my opinion I agree with Hayek because:
1. If the government interferes, that would leave them with debts - Fear the Boom and Bust
2. Real savings come first if you want to invest - Fear the Boom and Bust
3. If every worker was staffed in the army and fleet, we’d have full employment and nothing to eat - Fight of the Century
I completely agree with Keynes because Even though the government is in large debt we are still one of the fastest growing economies in the world. Showing that that isn't always that bad in government spending will always lead to economic growth. Examples are 1) The recession ended in 09. 2) And the World War II ended the great depression due to large government spending in the military and advertising for the war. 3) And eventually if people are Saving, people will stop the economy from growing. It's called the fear the boom and the bust.
Jonathan Ngo, 2nd Period
Jamie Chaffer
1st Period
I identified more with Keyens
1. Boosting Aggregate Demand helps a failing economy "Fear the Boom and Bust": Keynes vs. Hayek Rap Battle"
2.Governmet Spending helps the economy "Fear the Boom and Bust": Keynes vs. Hayek Rap Battle"
3.Letting the economy fix itself does not work and it needs a little push (aid from the government) to get going again "Fight of the Century": Keynes vs. Hayek Rap Battle Round Two"
I agree with Hayek because:
1. People should work to live a better life, and real growth in the economy means production of what people demand. They shouldn’t depend on the government to help them financially.
2. Spending is not free, and too much is wasted when the government increases spending, this will only lead to a greater amount of debt for the country.
3. You must save to invest, not by printing more money, because this will eventually lead to a bust in the market.
Alexis Chan
5th period
Bill Bradley
4th period
Keynes is correct
1. If the government increases Aggregrate demand the economy will be brought out of any recession
2. People should not save money because it causes a drift as he said.
3.the increase of Consumer input investment and government spending increases GDP as stated
Sena Pecen P.5
I identify most to Keynes.
1. Gdp or AS will dramatically decline if the demand decreases
2. therefore Aggregate Deman is most important factor in an economy
3. During recessions government must intervene to help economy
I agree with the economist, Keynes, because of these three points:
1. He believes that if consumers start spending money, it will boost and help the economy grow.-"Fight of the Century"
2. Safe intervention can count into depression. "Fight of the Century"
3. An increase in demand would increase GDP because it would cause an expansion.
Steve Raju
5th period
Alan John//5th period
I agree with Keynes rather than Hayek because:
1.) We cannot be complacent and try to let the economy fix itself. The economy needs government intervention for it to run in favor of the population. (Fear the Boom and Bust)
2.) The flow of money is what allows for a freely moving, dynamic economy. Holding money in savings account does not benefit the overall economy (Fear the Boom and Bust)
3.) Government involvement in actions such as economic policies can severely reduce the magnitude of economic shocks such as a crisis of depression (Fight of the Century)
I agree more with the arguments made by Hayek because
1. the effects of one's actions is far greater than its range of vision. The intended effect of action of the government may not always be the resulted effect- the over manipulation of government is bad which is why we should cut out all government interference in the economy.
"Fight of the Century"
2. spending should not be impulsively done but rather saving small amount sover tome to help us bounce out of recession
"Fear the Boom and Bust"
3. prices, wages, and interest rates are flexible
"Fight of the Century"
Priya Thomas
2nd period
Roshan Mathew 1st period
I agree more with Keynes due to the following reasons
1.government stimulation and actions in the economy compensate for the fear that people generate during recessions- Fear the Boom and Bust
2. spending should be encouraged because it enacts the circular flow market as aggregate demand overall accelerates, regardless of how it happens the flow of economy occurs with spending- Fear the Boom and Bust
3.spending during the war helped save our economy so overall spending is always the solution- fear the boom and bust
Period 2
I agree with Hayek more b/c:
2. Focusing on the short term fails to truly eliminate the factors that go on to make recessions (Rd. 2).
2. Giving losing sectors in the economy chances by bailing them out disenfranchises other sectors that are doing well (Rd. 2).
3. Cash traps are and should be made from bad banking systems rather that being the effect of a recession with no government spending (Rd. 1).
I agree with Keynes over Hayek
1. The constant circulation of money helps keep the economy moving. Government spending helps whrn consumer spending falls. Fear the Boom and Bust
2. Government spending helps make up for when citizens save. saving only hurts the economy and keeps it from growing. Government spend helps counteract that. Fear the Boom and the Bust
3. War time brought america out of the depression because it increased production and moved towards full employment. Fight of the Century
Mitchell Arwine. period 4
Tejiri Okukpe
Period 1
I identify most with Keynes.
1. I agree that spending helps the economy, and saving stops the economy from growing (Fear the Boom and Bust)
2. The government should be involved more in the economy to prevent recession and destruction (Fight of the Century)
3. Government spending helps the economy grow as seen in WWII (Fight of the Century)
Matthew Reyes
Period 1
Although there were valid points made by both economists and some flaws in each of their ideologies, I must agree with Hayek. It is evident that the economy we have now, which follows Keynesian values, is resulting in a rise of inflation and a decrease in the value of our currency, driving the business cycle. I personally believe that if we set proper guidelines and let the economy thrive as a truly capitalistic economy, we would possibly not have to worry about upcoming, inevitable recessions. Despite the possibility that the change in governmental intervention could lead to revolts and a large recession, it could possibly prevent all future recessions as a whole.
1.) "[The] focus on spending is pushing on a thread. In the long run, it is the theory that is dead." ("Fear of the Boom and Bust")
2.) "Let's not repeat what created our troubles." ("Fight of the Century")
2.) "I want real growth, not just a series of bubbles. Stop bailing out losers and let prices work." ("Fight of the Century")
I agree with Keynes because
1. The beginning of the World War II would bring an end to the depression
2. saving money won't give a bump to our economy or it would not create an investment
3. sparking the aggregate demand will give a bump to the GDP
Alan Cummins
4th Period
I agree with Hayek more than I agree with Keynes.
1. As interest rates and the cost of production rise, the economy takes a downturn. "the boom turns to bust as the interest rates rise with the cost of production" - FA Hayek (from Fear the Boom and Bust)
2. By printing more money and through monetary policy, the government could cause the economy to bust into a depression. "You must save to invest, don't use the printing press Or a bust will surely follow, an economy depressed" - FA Hayek (from Fear the Boom and Bust)
3. Employment was close to full at World War II because of the draft and if every worker was in the armed forces, production of food/necessities would fall because there would be no workers. "If every worker was staffed in the army and fleet, We'd be at full employment with nothing to eat" - FA Hayek (from Fight of the Century)
I agree with Hayek's belief that the government should avoid intervention with the economy because the arguments he makes about the wastefulness and uncertainty of government spending seems to more accurately depict the economy than Keynes' idea that government spending will solve everything. The following points from the videos argue Hayek's points:
1. The economy is much more complex than a cycle and equation. An increase in government spending is not going to "fix" the economy without any repercussions, such as a large debt (Fear the Boom and Bust).
2. The economy is most effectively stimulated with "real growth" by the production of goods based on the demands of the people, not from a "spark" from government spending (Fight of the Century).
3. During recessions, there are only some sectors of the economy that are suffering. Since it is quite unpredictable where money from government spending will go, money going to thriving sectors would be wasted since it is not fixing the roots of the problems in the economy (Fight of the Century).
Erik Shoga
Period 2
Personally I agree with Keynesian economics, but I think Hayek does bring up some good points.
1."Don't keep money in your pocket or that growth will never lift." Keynes (Fear the Boom and Bust) It is true that excessive saving is not going to help the economy in any way shape or form. If the economy is failing, then saving more and hiding away money only serves to stagnate the flow of money, goods, and services; AKA the economy.
2."We could've done better had we only spent more, too bad that only happens when there's a world war. You can carp all you want about stats and regression. Do you deny World War II cut short the Depression?" Keynes (Fight of the Century) War may be a terrible thing, but the fact remains: it stimulates and boosts the economy. It did get us out of the depression and while that may have been a hard time for the country, we did have an economic boost.
3."Creating employment's a straightforward craft, when the nation's at war, and there's a draft. If every worker was staffed in the army and fleet, we'd have full employment and nothing to eat." Hayek (Fight of the Century) However, it is true that the statistics about the benefits of war are slightly skewed. When viewing the facts from war, you have to take into consideration the lower numbers of available workers and lower numbers of needed resources.
4."The economy's not a class you can master in college, to think otherwise is the pretense of knowledge." Hayek (Fight of the Century) Unfortunately, this is true. Nothing is simple enough to be fully learnt in a classroom. You have to go out and experience something to truly be able to learn about it. Knowledge without experience is like trying to use theories to control the world. But theories without practice does not account for the unpredictability of the real world. To fully implement something, you have to also account for what might go wrong.
5."People aren't chessmen you move on a board at your whim-their dreams and desires ignored. With political incentives, discretion's a joke. Those dials you're twisting? Just mirrors and smoke." Hayek (Fight of the Century) The government could do with a healthy amount of clarity and transparency. In this day and age, politicians are not exactly the most trustworthy of people. To be able to reach the top is such a cut throat and shady world, requires the ability to bend the rules and have more depth than an honest person would have.
Nathanael Tan
Period 1
I agree more with Hayek
1. During World War II, many people were employed, but while that sounds like it boosts the economy, it actually doesn't help at all. If all of the employed workers are manufacturing resources for the war, then nothing is being made to enhance society. (Fight of the Century)
2. The economy can't be governed by one simple system. It is complex and we can't generalize how the economy works so Keynes simple plan doesn't work.(Round Two)
3. The government shouldn't interfere with the economy because many problems fix themselves and government interference would just complicate recovery. (Fight of the Century)
Bryan Ta
4th Period
Even though both economists have valid points, I more so agree on with Keynes because...
1. When the economy is greatly struggling, the government should intervene and help the issue. The economy cannot simply repair itself on its own. The economy needs a spark and the government can provide that. (Fear the Boom and BUst)
2. Keynes point that saving stops the economy from expanding and spending causes the economy to agree is something I agree with. (Fear the Boom and Bust)
3. Keynes theories were proven correct when the great depression ended in WWII. Not only that, his theory helped the U.S. get out of the recession that occurred in 2008. (Fight of the Century)
Cameron Walker
Period 4
Sang Kirsten Ebueng
Period 2
I agree more with Hayek because he see's the economy as far more complex than equations and a circular cycle.
1. "People work to live better, to put food on the shelves" (fight of the century). People aren't motivated to spend or save by political incentives as much as one may think. More often, people are working for a variety of reasons that cannot be categorized.
2. Keynes argued that it doesn't matter where government spending is directed, as long as spending is occurring. Hayek argues that that isn't necessarily true (fight of the century). Some sectors of the economy could be doing just fine, so it does matter where government money is directed in order to stimulate the economy. If money is going towards thriving sectors of the economy, it would be a waste.
3. Hayek argues that booming economies is when it is most unstable. Investment in capital goods during a boom makes the downfall/bust even worse (fear the boom and bust).
Charli Escobedo
Period 4
I side with Keynes due to the fact that he believed that the government should boost the aggregate demand during times of depression, also that war only destroys the economy and the money spent increases the GDP, and as well as low interest rates do not increase the economy as much as spending does.
Ben Madry 1st period
I agree with keynes
1. spending will help the economyg row, saving will hurt the economy and halt it.
2. his theory helped the U.S. get out of a recession in 2008
3. entering WWII helped get out of the Great Depression
Zoheb Khawaja 5th
I agree with more of Hayek's ideas.
1. From "Fear the Boom and Bust" Hayek states that Keynes' aggregate demand equation does not value human action and motivation and that there's too much aggregation.
2. Mentioned in "Fear the Boom and Bust" Hayek says that capital structure is key and malinvestments wreck the economy.
3. In "Fight of the Century" Hayek argues that jobs are the means and people work to live better and provide for themselves and that real growth is production of what people demand.
Sainath Krishnamurthy
Period 4
I agree with Keynes.
1)Stabilization of the Banking Industry
As witnessed during the 2008 to 2009 recession, instability in the American economy led to banks and other lending institutions tightening up on lending. Without access to funding, small business start-up and growth halted, and the real estate industry suffered as mortgages were difficult to obtain. When the government steps in to guarantee loans, lenders are more confident in providing the capital needed in both the business and consumer markets. (Boom and Bust)
2)Higher Employment Levels
In recessionary periods, employment drops off and unemployment rates soar as businesses cut back on the size of their workforce. Lack of employment then decreases consumer demand for products and services as families tighten their belt. Thus, a dangerous downward spiral is created. When the government steps in to financially stimulate businesses, those companies begin to hire once again. When the government invests in public works projects, they directly increase employment. With both methods, the downward spiral is halted. (Fight of the century)
3)Moderation of Interest Rates
In an overly-stimulated economic cycle, the demand for loans to increase consumption and investment outstrips lenders' abilities to provide them. This causes increases in interest rates, fueling inflation. Under Keynesian theory, government spending in such a market is curtailed, lowering the overall demand for loans and cooling off interest rates and, ultimately, inflation. (Boom and Bust)
Amber Montemayor
2nd pd
I agree with Keynes more than Hayek.
1. Both monetary and fiscal policy can positively impact an economy by boosting aggregate demand and, in turn, GDP (Fear the Boom and Bust).
2. Increasing government spending and consumption can help the economy during recessions. For example, the Great Depression of 1929-1939 (Fear the Boom and Bust).
3. State intervention is necessary if economy economic activity is steadily declining over a period of time (Fight of the Century).
Though Hayek would be correct the majority of the time with Laissez-Faire, Keynes is right the rest of the time. The rest of the time is when the economy is struggling and that is most important.
1. The economy is like a stalled engine, it needs a spark (rap battle round 2). a failing economy will not correct itself in a depression that was made due to speculation among other reasons. The stock market crash of 1929 was a result of speculation which led to increased trading, and ultimately, lost money. The government must get involved to give that "spark".
2. spending of any type is good for the economy (rap battle round 2). The economy is based on spending and buying, if there is no spending then there is no buying. if there are no jobs or source of income then there is no spending and no buying and the economy stalls or falls, just like in any depression or recession.
3. The Recession of 2008 and 2009 would have been a lot worse if Keynesian economics were not utilized (rap battle 2). If the government were not involved, it could have eventually been as bad as the great depression. the only reason the recession stopped was because of government spending.
Robert Slaybaugh
Period 4
Sahil Shah
Period 2
I agree with Keynes
1. The recession ended in 09...this would've been worse all the estimates prove it. (Fight of the century)
2. World War 2 cut the depression (Fight of the century)
3. Its like an engine thats gone dark. We just need a spark. Spending is the juice that gets the economy going (Fight of the century)
Sanyoni Desai
5th Period
I agree with Hayek's economic ideologies despite the strong ideas express through Keynesian economics. Keynes argues that the economy needs government intervention to drive it in time of depression or booms. However, Hayek counters that argument by explaining how controlling the economy has adverse effects that could result in more damage than positive outcomes.
1. Hayek explains that by adding greater capital investment and having a hands on economic policy by the government to boom the economy would result in a bigger economic downfall than the natural downfall rate. "Fear the Boom and Bust"
2. Keynes argues that war time spending by the government progresses national economies. He describes World War II as a positive movement to prove his point; however, Hayek points out that it brought disaster and destruction on a far greater level despite the economic boom which would identify war as a counter productive economic movement. "Fight of the Century"
3. Finally, Keynes proposes that rise in aggregate demand caused by government spending, consumer spending, investment by firms and companies and international trade boosts the economy. Hayek points out the fallacies of Keynes' ideology by explaining that consumer spending is not a constant value and its fluctuation does not necessarily constitute in economic downfall. Hayek also explains that these factors are not the only factors which contribute to the aggregate demand in the economy. Factors such as time and consumer biases play a role in the fluctuations in the market.
In conclusion, Keynesian economics is flawed, despite its complete explanations of the economy, because they are applicable in very specific scenarios. On the other hand, economy is a self sustaining entity which would stabilize if left alone due to economic competition, price level shifts, and change in supply and demand.
Stephen Kelly
Period 4
I agree with the views of F.A. Hayek more than with Keynes. Hayek disagree with the theory of Keynes about the Economy being a engine following a "circular" cycle of money.He believed the economy was much more complex and overspending from the government would lead to depression (2nd video).Also Hayek brought up a point that although the growth and spending From WW2 is what ultimately brought us out of the depression and brought the country into a period of economic growth, it did nothing to improve society with jobs and multiple resources going into weapons of destruction(2nd video). Lastly, Hayek stated that we we just cant ignore the long-run of economic growth because at some point the economy will slow, leading to recessions and that we should take the economy back into the power of the people and let us decide our own course(2nd video).
Denise Doyle
Period 5
Although Keynes has good points, I agree more with Hayek.
1. Hayek states that real growth means production of what people demand (round 2). Increase in aggregate demand and stimulation of economy stems more from what society needs and less from where the government spends its money.
2. Keynes compares the economy to a car engine, in which government spending is the spark needed to start the engine back up. Hayek negate that idea and states the the economy is nothing like a car engine, but rather is organic (round 2). Hayek makes a good point in that the economy is more complex than a one step plan to start an engine, it is many components needed to make the economy healthy.
3. Real savings come first if you want to invest (round 1). People have to save in order to invest, printing money during a boom lowers the value of the dollar and makes the bust even more detrimental to the economy.
Jerry George
Period 2
I side with Keynes over Hayek more because I agree that
1. The government should boost aggregate demand during times of depression.
2. During recessions increasing government spending can help boost the economy.
3. Spending helps the economy while saving hinders economic growth.
Yash Parmar
Period 5
I agree with Keynes
1. Government has to be a part in fixing the economy- Keynes
2. Increased government spending leads to higher AD
3. Need monetary and fiscal policy.
Shweta Mathews
Period 4
I agree with Keynes because:
1. His argument that government spending will get countries out of recessions is valid. Throughout history, many of the western countries have shown characteristics of the Keynesian model, and many of them have adopted his view regarding government spending and have attempted to boost the economy through spending increases and tax cuts (Fear the Boom and Bust).
2. Keynes believed that in order to boost the economy we need to boost the aggregate demand. He believed that aggregate demand was the most vital economic measure of a country (Fear the Boom and Bust).
3. World War 2 played a prominent role in ending the Great Depression. Fight of the Century).
I agree with Keynes because:
1. In order to get the economy moving, government spending is the key aspect that will help it flourish.
2. Lowering interest rates will increase consumer spending which is vital for our economy.
3. As a result of World War II, unemployment decreased and spending increased. World War II marked the end of the Great Depression
Aleena Mathew, 1st period
I agree with Keynes
1. Government spending must occur if the economy wants to move
2. We need to spend money to help the economy rather than save it up
3. War time spending is what saved us, so more spending will help the GDP grow which helps the economy
Kenneth Easo 4th Period
Wesley Cherry
Period 4
I agree with Keynes beacuse:
1) saving money hinders economic exansion. Alternatively, spending increases capital and aids economic expansion. (Fear the boom and bust)
2) Keynes theories on government spending have already been validated as they werre used to help pull the United States out of the great depression (fight of the century)
3) the economy cannot fix itself without help from the govenment (fight of the century)
Emily Tran
Period 2
I agree with Keynes because
1. We should spend more instead of saving to get the economy going (Fear the boom and bust)
2. in times of recession, government spending is key to fixing the economy in those times (Fight of the century)
3. World. War II pulled the US out of the depression due to government spending (Fight of the century)
I agree with Hayek more than Keynes because:
1) He is against unemployment benefits. This means that the people should stop relying in the government to give when benefits when they are lazy to not find a job. (Article)
2) People should put in more hard work and work longer hours to achieve a better life than the life be given to them. People should put in more work and longer hours so that they can achieve a better lifestyle than a better lifestyle given to them. (Battle of the Century)
3) That we should fear the boom because the low interest rates and cheap money soon becomes bust and they hurts the government more that anything because it is hard for the government to bounce back from a bust.
Abin Manuel
5th Period
I agree with Keynes because:
1.The government needs expansionary spending in order to get the government moving (fear the boom and bust )
2. Keynes theory helped the U.S out of the 2008 recession ( fight of the century )
3. War, for examples like world war 2, is an example of when government spending got us out of a slump. (fight of the century)
Kyle okeke period 2
Daniel Martin -5
I agree with Keynes because :
1. A government seeking that government expansion must spend more instead of saving more.
2. Spending money , rather then saving, actually helps the economy. You might think differently when it comes to your own pockets.
3. Saving hinders the growth of an economy
Naomi Samuel
Period 5
I agree with Keynes.
1. According to Fiscal Policy and Keynes, in order to reach a better place economy, government spending needs to be done.
2. Although it seems incorrect, spending money actually helps the economy while saving it can hurt the economy.
3. When the government has to spend money without a choice, like a war, it can actually benefit the economy. Many people would typically think that a war would hurt a country, but when the government spends money, it actually can improve and stimulate the economy.
Jeremiah John
Period 2
I agree with Keynes because:
1. In order to get the economy moving, money needs to be put in to kickstart it. It is like “priming the pump” which helps in getting the economy up. By using the money we would normally save it will help to get it back to us.(Fear the boom and bust)
2. When recession hits, government spending helps to bring the economy back to where it was when the people can not.( fight of the century)
3.When the US government encountered WWII, the economy seemed to go up and out of the depression due to the benefits of government spending. ( fight of the century)
Rayomand Hormuzdi
Period:1st
I agree with Hayek because:
1.Every time you are "priming the pump" or making the government use fiscal policy you keep adding more and more debt until we come to a point where we can no longer pay off are interest, therefore destroying are economy.(Fear the boom and bust)
2.War seems like a good idea in forcing almost everyone to work but this leads to high employment and little to no food because most of the employment are the solders in the army.(Fight of the century)
3.The economy's not a car, there's no engine to stall, no expert to fix it, there is no "it" at all. The economy is us, we don't need a mechanic. Put away the wrenches, the economy's organic.(Fight of the century)
1. Hayek says that to understand recession, you have to analyze the boom and bust concept.This concept allows stability and well being-in the economy, which is better than the fluctuations of the business cycle. Fear the boom...
2. A lowering of interest rates gives the illusion of more credit, which leads to an increase in inflation.Fear the boom...
3. The economy is a result of people's decisions, and the actions of real people cannot be simply controlled by the government. FIght of The Century
Kevin Sani
Period 1
Kevine Jaimon 5th Period
I agree with Keynes because he said:
-with aggregate demand being allowed to expand, the economy can hit a boom
-preserving money won't benefit to the economy
-a boost in demand would escalate the GDP, causing an an expansion
Isabel Zhou 5th Period
I agree with Keynes because
1. A government should uses aggregate demand to their advantage as it can recover the economy from depression since it increases government spending and consumer buying power.
2. World War 2 brought an end to the great depression as spending increased and unemployment decreased
3. Saving does not promote growth
Tom Joseph 4th Period
I agree with Keynes because
1. The government should steer the economy in the right direction when it needs help.(Fear the Boom and Bust)
2. The economy improves and grows when we spend more money. (Fight of the Century)
3. Saving money prevents the economy from thriving. (Fear the Boom and Bust)
Alwyn Joseph 5th Period
I agree with Keynes because
1) Saving money and not spending money is worse for the economy
2) When the government of the U.S. spent money during WW2, it brought the country out of recession
3)Lowering interest rates will increase consumer spending, which is necessary for expanding an economy
I agree with Hayek
Due to 1) When he claimed that people are not chess pieces that are controlled.(fight of the century)
2) That expansionary isn't successful due to the increase of inflation when there's a decrease in interest rates( fear the boom)
3) That war does increase GDP yet if everyone is a soldier there would be no food on tables in the US. (fight of the century)
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