Economics 101: Hayek versus Keynes

Among the standard-bearers in the field of economics are two giants of innovation: Nobel Prize economists John Maynard Keynes (pronounced Canes) and Friedrich von Hayek (pronounced HI-yek).

Keynes (1883-1946) founded the philosophy of a nation spending its way out of economic downturns. As an economy sours, Keynes proposed, government ought to interfere in the marketplace and infuse the economy with government-created jobs and make money more available by printing more dollars and let them circulate.

Hayek (1899-1992) argued that no single person or government entity ever has complete knowledge about consumer habits and preferences and, as such, no government is ever well situated to attempt to control an economy. Keynes is viewed by liberal supporters as an advocate for big government. Hayek is viewed by conservative supporters as an advocate for free markets.

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