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There are generally 2 school of economical thoughts in a democratic society. One is known as the Keynesian economics and the other is Austrian School. The former is conceptualised by the British economist, John Maynard Keynes, who believed that government must intervene to finagle inflation and stabilize the parsimony, cushioning booms and busts in the process. Opposing this idea, Fredrich Hayek, an Austrian, back up a free market mechanism and believed in nominal government encumbrance. In his opinion, the market forces leave behind always sense of equilibrium out and price is the best emblem to communicate to businesses for determination making (to produce more or less). Government intervention like price setting would hence interfere with the signal and produce inefficiency in the market. The documentary began with this difference in ideas and did head to evaluate the effects and outcomes of these 2 school of thoughts with real examples. In my opinion, a Keynesian economy is one that has slow and truehearted growth, without overmuch fluctuations while a free market economy will see booms and busts that will be extreme and frequent. Businesses will come and go very frequently. This is what happened in the financial meltdown in 2008. The Credit Default Swaps (CDS) were not regulated by the government and it went out of hand.



Banks over-leveraged and market forces disciplined them.

Now conjecture of a scale. On one extreme, it is socialism, where the government has total lock of production. On the other end is free market economy. Keynesian economics will be somewhere in the middle, impending to the latter. I always have a principle, too much of anything is no good. Hence, a balance approach is always preferred. that this does not mean I support Keynesian economics. I am actually favoring the free market economics more, comparatively. If I can cut somewhere in between both(prenominal) of them, it would be where I want to be. Government intervention is indispensable but should be very much limited. The reason wherefore I...If you want to get a full essay, order it on our website: Orderessay



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