1) Contrary to the orthodox position supporting laissez-faire policies, John May

Question

1) Contrary to the orthodox position supporting laissez-faire policies, John Maynard Keynes, who “violently opposed laissez-faire” advocated government intervention with an argument that “support[ed] both individualism and collectivism” (p. 36). How did he do this?

2) “It is important to note, however, that America’s economic successes during the postwar period were usually credited to competitive capitalism” (p. 39). Was competitive capitalism indeed the driving force of these successes?

** 100 words should be enough for each question: thanks!!

below is the pdf link.

https://drive.google.com/file/d/0B7PCq1yNZjIIQUFmRWh3b19Fbzg/view?usp=sharing

Explanation / Answer

1) The British economist John Maynard Keynes condemned laissez-faire economic policy on several occasions. In The End of Laissez-faire (1926), one of the most famous of his critiques, Keynes argues that the doctrines of laissez-faire are dependent to some extent on improper deductive reasoning, and, Keynes says, the question of whether a market solution or state intervention is better must be determined on a case-by-case basis. The goverment intervention is to stabilize the economy. This can be gained by public policies

2) capitalism is the mode when private companies plays a very important role in supplying the goods. In this case the competition is the driving force. The market drives his own price and pace. America has the most competitive economy, American has the inequality of wage to a very high context but still a very highly paid economy.

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