How can John Maynard Keynes version of capitalism be compared to
Adam Smith's? Both are considered to be the molders and theorizers of the
economic era. They are both very different in thinking, one complex the
other basic, in there specific time history.
John Maynard Keynes has had much of the worlds economic theories
based on his beliefs in his most important work The General Theory of
Employment, Interest, and Money. During the Great Depression, Keynes, to
secure a stable economy, promoted the use of government intervention.
However, the idea was said to be deranged be President Roosevelt, he was
against spending tax payers money to allow the nation to get into a national
deficit. Another theory of Keynes was that the inflation and unemployment
were necessary to keep the economy balanced. It can be understood by the
fact that too much inflation expresses signs of low unemployment for the
nation. Even so, if the unemployment rate is too high then the inflation
percentage will pull down the economy to a low percentage too. Because of
President Roosevelt decline to use the theory of Keynes until it was too
late, his theory was not really confirmed. In spite of that, while his theory
was being applied the economy slowly, but surely started to rise. At last,
when World War II came along it caused a mass production which boosted
the economy from slipping down any future, and allowed companies to rise
up from bankruptcy.
Adam Smith was one of the earliest of our economists that Robert L.
Heibroner talks about. Its seems to me like he was the person that presented
capitalism to the English government. Smith was alive during the time that
Britain had a hold on the American colonies. It was Smith that directed the
King and Queen, and recommended The Crown's abuse of the colonies
would help the homeland and be successful and g...