Friedrich August Hayek, a friend of Keynes, proposed the idea of a non-intervening governments towards the issue of, wait for it......economics. It is basically a Laissez-faire (French for let do) economy or in my words "Dude, chill, don't mess with me". Hayek is saying government is part of the problem not the solution. If the government messes around the economy with its regulations and rules, the markets will not properly restore itself. Also when companies start producing jobs and goods again, it is going to be a boom again.
My question to this argument is how can you jump start an economy when both consumers and producers have no money to spend? How can you restart your economy when banks won't lend money to people because they might not be able to pay it back? Is money gonna suddenly appear out of nowhere? I mean let's take this into perspective, whose going to spend money if people can't. The answer is government. Government has the largest pool of capital wealth to get people back to work. Case in point, FDR and the New Deal, if the great man didn't enacted the New Deal then the US would not only recover from the great depression but they will become the superpower in the following decades. Also, what about the huge disparity between the haves and have-nots? This economic disparity will create extremes, anarchy and things will fall apart. Poverty and Excess will be common while Just Enough will become a rarity, if any. Government is established to promote the well-being of the people, subjected to the people and nothing else.
(A great man)
"Too much capitalism does not mean too many capitalists, but too few capitalists"
- G.K Chesterton
I'm sorry I wrote so much but I get passionate with the Social Sciences.....I really wanted to write more but it was going to be too much...
Next up: MDG updates! Yehey!
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