John Maynard Keynes
Introduction:
I am John Maynard Keynes and I am most famous for creating the branch of economics known as Keynesian economics.
My Biography:
I was born in June 5th 1883 and died on the 21st of April 1946. I was brought up in a middle class family and was educated in Eton and King's college at Cambridge where I studied economics. I had a variety of interests ranging from arts, probability and politics. I had written several book my most famous of which was 'The general theory of Employment, Interest and Money'.
My views on economics:
Introduction: during my time, my views were seen as controversial yet revolutionary. During the time the traditional view of economics was dominant which involved the idea that the market would always react rationally and the government did not need to interfere in the market in the case of a recession as it would always be self corrected. My views were very different from this, as I believed that in fact a recession could prolong indefinitely and the government must bring the economy out of recession. I also believed that the economy is unpredictable.
Irrationality of the economy: The economy is made up of people which all have a set of animal instincts and will effect the economy based on how they view it. I describe this as the animal spirit. This animal spirit is why the economy is so unpredictable as people do not always react rationally to a situation especially when peoples view of the economy is pessimistic which will cause the animal spirit of the economy to become low. Depending on the state of the economies animal spirit will effect the way people react in the economy.
The downward spiral theory: I believe that because of the animal spirit of the economy an economy may become stuck in a recession. In the case of a recession the animal spirit may become low as peoples view of the economy becomes pessimistic. Normally monetary policy would stimulate the economy as reducing interest rates would encourage more investment. But if the animal spirit of the people in the economy is low investors may not feel that their investment will be successful as their view of the economy is pessimistic. Producers may also reduce output as they may believe that demand will fall as a result of a recession which will lead to further unemployment and in turn lower demand which will cause more unemployment. This downward spiral may continue without government intervention.
Government role in the economy: The government must sometimes intervene in order to pull the economy out of recession as animal spirits during this time will be low and would be discouraged from investing even with the reduction of interest rates and so the government must spend money on projects in order to increase employment and this will lead to higher tax revenue for governments.
World economy: Through out my career I have always believed that all countries must cooperate for the greater good. It is important that all countries cooperate economically so we can work towards a better future. I also believe that it is not right that countries should dictate austerity measures for other economies and that all countries should work towards economic equality.
Are people inherently self interested: I believe that all people within an economy are to some extent driven by animal instincts as I have mentioned before and therefore people are indeed self interested and the best ways to avoid those from trampling on the rights of others in order to benefit themselves is to do the following:
1. Keep the spirits of the people high. As I have mentioned before if animal spirits fall low producers may feel discouraged from increasing output leading to further unemployment, leading to less demand and so on. This downward spiral can cause a huge amount of discontent amongst people leading to their self interested instincts to kick in, giving the people incentive to trample on the rights of others in order to fulfil there own needs. In order to avoid this we must keep animal spirits high so that the people do not have the need to trample on others to satisfy there needs.
2. However keeping animal spirits high does not always keep solve the problem entirely. Government intervention is also necessary for example when large corporations violate the rights of their workers in order to reduce costs. So government intervention is also necessary to ensure the rights of people are protected.
How to deal with the current environmental situation: I believe that the only way for humanity to solve the current environmental situation is to work together. Many developing countries must resort to more efficient yet environmentally unfriendly methods of production to stay competitive to against the more established economies which are capable of either sacrificing some productivity for less efficient yet more environmentally friendly production methods. In order to avoid this problem we must work towards economic equality which will require sacrifices from the more developed economies as the only way to achieve economic equality is for developed economies to reduce their total export and allow developing economies to grow. We must also raise animal spirits in the environmentally friendly technology market to encourage more demand in this market and to encourage more research into environmentally friendly technology. Governments must do this by subsiding the use of environmentally friendly technology and spend money on their own green projects. Governments must also spend money on implementing environmentally friendly technology into their infrastructure which will raise the demand for green technology in turn raising, increasing incentive for more producers to join the market and by subsidizing the use of technology will keep price low for buyers while keeping revenue high for suppliers. Governments can remake the money through increased tax revenues as there is an increase in employment for the environmentally friendly technology market.
Where I believe human society will be in the next 100 years: I have always believed that all economic powers must work together towards economic equality for the better good which will require great compromises by more powerful economies. I hope in the next 100 years we would have reached such a level as this would improve the lives of billions of people throughout the world. I believe that the great economic powers of the world will finally make the necessary compromises which include the reduction of competitiveness in terms of their exports allowing weaker countries to fill their trade deficits and become more economically stable. Although this will require a great amount of sacrifices in part of the worlds established economies but in the end it is a necessary one.
Videos explaining my ideas:
Here are two videos explaining my ideas. One of them is documentary by BBC and another is a rap song with myself and Frederic Von Hayek:
I am John Maynard Keynes and I am most famous for creating the branch of economics known as Keynesian economics.
My Biography:
I was born in June 5th 1883 and died on the 21st of April 1946. I was brought up in a middle class family and was educated in Eton and King's college at Cambridge where I studied economics. I had a variety of interests ranging from arts, probability and politics. I had written several book my most famous of which was 'The general theory of Employment, Interest and Money'.
My views on economics:
Introduction: during my time, my views were seen as controversial yet revolutionary. During the time the traditional view of economics was dominant which involved the idea that the market would always react rationally and the government did not need to interfere in the market in the case of a recession as it would always be self corrected. My views were very different from this, as I believed that in fact a recession could prolong indefinitely and the government must bring the economy out of recession. I also believed that the economy is unpredictable.
Irrationality of the economy: The economy is made up of people which all have a set of animal instincts and will effect the economy based on how they view it. I describe this as the animal spirit. This animal spirit is why the economy is so unpredictable as people do not always react rationally to a situation especially when peoples view of the economy is pessimistic which will cause the animal spirit of the economy to become low. Depending on the state of the economies animal spirit will effect the way people react in the economy.
The downward spiral theory: I believe that because of the animal spirit of the economy an economy may become stuck in a recession. In the case of a recession the animal spirit may become low as peoples view of the economy becomes pessimistic. Normally monetary policy would stimulate the economy as reducing interest rates would encourage more investment. But if the animal spirit of the people in the economy is low investors may not feel that their investment will be successful as their view of the economy is pessimistic. Producers may also reduce output as they may believe that demand will fall as a result of a recession which will lead to further unemployment and in turn lower demand which will cause more unemployment. This downward spiral may continue without government intervention.
Government role in the economy: The government must sometimes intervene in order to pull the economy out of recession as animal spirits during this time will be low and would be discouraged from investing even with the reduction of interest rates and so the government must spend money on projects in order to increase employment and this will lead to higher tax revenue for governments.
World economy: Through out my career I have always believed that all countries must cooperate for the greater good. It is important that all countries cooperate economically so we can work towards a better future. I also believe that it is not right that countries should dictate austerity measures for other economies and that all countries should work towards economic equality.
Are people inherently self interested: I believe that all people within an economy are to some extent driven by animal instincts as I have mentioned before and therefore people are indeed self interested and the best ways to avoid those from trampling on the rights of others in order to benefit themselves is to do the following:
1. Keep the spirits of the people high. As I have mentioned before if animal spirits fall low producers may feel discouraged from increasing output leading to further unemployment, leading to less demand and so on. This downward spiral can cause a huge amount of discontent amongst people leading to their self interested instincts to kick in, giving the people incentive to trample on the rights of others in order to fulfil there own needs. In order to avoid this we must keep animal spirits high so that the people do not have the need to trample on others to satisfy there needs.
2. However keeping animal spirits high does not always keep solve the problem entirely. Government intervention is also necessary for example when large corporations violate the rights of their workers in order to reduce costs. So government intervention is also necessary to ensure the rights of people are protected.
How to deal with the current environmental situation: I believe that the only way for humanity to solve the current environmental situation is to work together. Many developing countries must resort to more efficient yet environmentally unfriendly methods of production to stay competitive to against the more established economies which are capable of either sacrificing some productivity for less efficient yet more environmentally friendly production methods. In order to avoid this problem we must work towards economic equality which will require sacrifices from the more developed economies as the only way to achieve economic equality is for developed economies to reduce their total export and allow developing economies to grow. We must also raise animal spirits in the environmentally friendly technology market to encourage more demand in this market and to encourage more research into environmentally friendly technology. Governments must do this by subsiding the use of environmentally friendly technology and spend money on their own green projects. Governments must also spend money on implementing environmentally friendly technology into their infrastructure which will raise the demand for green technology in turn raising, increasing incentive for more producers to join the market and by subsidizing the use of technology will keep price low for buyers while keeping revenue high for suppliers. Governments can remake the money through increased tax revenues as there is an increase in employment for the environmentally friendly technology market.
Where I believe human society will be in the next 100 years: I have always believed that all economic powers must work together towards economic equality for the better good which will require great compromises by more powerful economies. I hope in the next 100 years we would have reached such a level as this would improve the lives of billions of people throughout the world. I believe that the great economic powers of the world will finally make the necessary compromises which include the reduction of competitiveness in terms of their exports allowing weaker countries to fill their trade deficits and become more economically stable. Although this will require a great amount of sacrifices in part of the worlds established economies but in the end it is a necessary one.
Videos explaining my ideas:
Here are two videos explaining my ideas. One of them is documentary by BBC and another is a rap song with myself and Frederic Von Hayek:
BBC documentary:
Rap with me and Frederic Von Hayek:
Insert your pitiful comments here:
Dear John M. Keynes,
When you answered the question "are people inherently self interested" you said the government intervention was just a possibility. Why not have it as the norm? If the government controlled everything, there wouldn't be a risk of people being discontent and instead have a content society where the government controls everything. Your enemy, Karl Marx
When you answered the question "are people inherently self interested" you said the government intervention was just a possibility. Why not have it as the norm? If the government controlled everything, there wouldn't be a risk of people being discontent and instead have a content society where the government controls everything. Your enemy, Karl Marx
Dear Karl Marx
If the government attempts to control everything people will surely become discontent and so the government should only intervene if there is market failure or in this case when peoples rights are violated.
Your opposing economist who actually created economic theories which actually work John M. Keynes.
If the government attempts to control everything people will surely become discontent and so the government should only intervene if there is market failure or in this case when peoples rights are violated.
Your opposing economist who actually created economic theories which actually work John M. Keynes.
your argument is totally invalid ! The more the government get involved in the economy, the less efficient it would be!!!!!!!! - your enemy F.A. Hayek
Dear F.A Von Hayek
Well Like I've said before people are not all rational and thus can make mistakes, the housing crash of 2008 is an example of this showing how markets can act irrationally. The crash of 2008 is because governments got less involved as they decreased regulations and this caused companies to act irrationally which led to the global financial crash. But I do believe that governments should not impose too much control as in many circumstances the free market is more efficient but once again they do make mistakes and the government is needed to correct them.
Your enemy John M. Keynes
Well Like I've said before people are not all rational and thus can make mistakes, the housing crash of 2008 is an example of this showing how markets can act irrationally. The crash of 2008 is because governments got less involved as they decreased regulations and this caused companies to act irrationally which led to the global financial crash. But I do believe that governments should not impose too much control as in many circumstances the free market is more efficient but once again they do make mistakes and the government is needed to correct them.
Your enemy John M. Keynes
Dear John M. Keynes
I do agree with you at some points as we are both promoting capitalism but I do not think the government intervention is a good idea since innovations by entrepreneurs would be less if the government intervenes. This means that the economic development would not be maximised.
- Joseph Schumpeter
I do agree with you at some points as we are both promoting capitalism but I do not think the government intervention is a good idea since innovations by entrepreneurs would be less if the government intervenes. This means that the economic development would not be maximised.
- Joseph Schumpeter