John Maynard Keynes And Von Hayek: The Redistribution Of Wealth

In a time of great catastrophe, two great minds who come from different experiences will form a debate about their disparate economical ideas. John Maynard Keynes and Friedrich von Hayek were friends, but it is safe to say that they differed greatly with their views on the monetary system. In part 1 of the 3 part television series Commanding Heights, we see the world economy go back and forth from market economies to formulated and planned economies to back to a market economy. In this time of economic despair we come to learn the influential and distinct views of two great economist, Hayek and Keynes. Hayek was a from believer that the interest in markets is what potentially keeps production on point with at the same time people save which

There are pros and cons when it comes to this subject and understanding them can help form an opinion. Some pros of income or wealth redistribution could include a sense of fairness, and how it sometimes has positive effects for the poor as well as the rich. It helps bring in the gap of economic wealth helping prevent inefficiencies in the economy. The redistribution of income is not a hot topic to some but it has some positive effects as long as money is properly spent and the percentage of poverty is weakened. As for the cons, it is said that the redistribution of income or wealth goes against what the American economy stands for in a sense of a free capitalism. It is sort of the opposite of the pros in a way. You see when redistribution is taking place, big businesses and the wealthy are unable to create businesses, and hire. It acts as a cinder block in a way that it can bring the economy down. One last note regarding cons is that many despise redistribution because they feel they are forced to give their hard earned money away and that it promotes laziness even. I personally find my view leading against income distribution for not only political reasons, but for economic reasons and how it can effect the aggregate

Their ideas together can help maintain a stable economy at its equilibrium, but following them separated may lead to instability in the aggregate economy. Analyzing subjects such as inequality, minimum wage, and the pros and cons of wealth/income redistribution have broadened my understanding of the effects they can have on the economy as a whole. Learning about the way the macro economy functions can show one the many different ways of handling the economy there truly are and which policies/views can work best for the better of the overall