Adam Smith vs. John Keynes

Length: 2 Pages 589 Words

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 Continue...

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Because of President Roosevelt decline to use the theory of Keynes until it was too late, his theory was not really confirmed. Even so, if the unemployment rate is too high then the inflation percentage will pull down the economy to a low percentage too. Since the south was agriculture and the north industrial, this helped the nation to prosper on its own and maintain economic balance for while. Anyhow, Americans became free after the war and strangely enough followed the principles of Smith. He also guided the monarch to advise the colonies to pay taxes, which later caused the start of the American Revolution. Keynes seemed to be easier to understand and everything he said seemed to make more since to me. fact that too much inflation expresses signs of low unemployment for the nation. Adam Smith was one of the earliest of our economists that Robert L. Because of there beliefs, these men will have forever have left their mark on the world of economic history. So the colonies were abused and England, because more successful. He was trying to promote that there should be free enterprise in the midst of the people to keep the economy balanced and successful. Smith's theories also consisted of the belief that government should not get involved with the businesses. Its seems to me like he was the person that presented capitalism to the English government.