Wednesday, October 26, 2011

Economic Theories: Keynes vs. Hayek

A student recently pointed out these videos to me and I thought some folks might get a kick out it. It is a musical debate over the two main theories that economists use to manage our modern economy. John Maynard Keynes taught that economic crisis could be managed by government infusions of funding that could revitalize a stagnant economy. The lesser known theorist, Friedrich Hayek, argued a more classical liberalism approach. He believed if we left the economy alone it would balance and solve itself (essentially Adam Smith's "invisible hand" theory from centuries earlier). The two theorists face off in these two videos.

The original video:


And Round Two: