Fight of the century brings out the impact of government spending on the economy of the people of the United States as presided over by the world’s renounced economists Hayek and Keynes who are brought out as same believers and economists. They have varied opinions towards the impact of government spending on the economy. Keynes believes that better results would not have been achieved if they had spent less while Hayek is totally in opposition of the same. While Keynes believes that spending is the central matter of solution; money is channeled to target fields as means to revitalize the economy.
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According to research carried out by the economic bureau, recession ended around two years ago in 2009 and yet there are still problems of slow growth in the economy. They blame the top down approach and believe it is a big failure for the economy. Unemployment was immediately on the rise and the impact of war was much to blame for the negative effect it had on the GDP. The two economists were questioning whether creation of new employment was necessary when the country’s economy was in turmoil; if every man was employed as a soldier, employment opportunities would have been created with just but a worsening in the state of economy. It should be remembered that the economy grew faster just after the war ended.
According to Hayek, continuous spending by the government should t not be the course of action in seeking solutions to the crisis, given that the economy was in a slump. Across the show, Hayek advocates for real growth, which according to him means being in a position to put food on the table. He further believes that jobs are just means and not the ends in themselves. The two economist could manage to come into terms in their argument and still to date they can never agree on the course to take under such circumstances.
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