Keynesian vs. Classical economics

Keynesian vs. Classical economics

Storyboard Text

  • My economics theory approves of government intervention
  • Well, my theory disagrees with the intervention of government.
  • My theory supports government debts. They firmly believe that governmental spendings increase aggregate demand in the economy.
  • Keynesian economics focuses on demand-side solutions to recessionary periods. The intervention of government in economic processes is an important part of the Keynesian arsenal for battling unemployment, underemployment, and low economic demand.
  • Well, my theory does not support governmental spendings, and they also detest more government debts. They prefer a balanced budget because they have a perspective that the economy doesn’t derive benefits from higher governmental spendings.
  • Classical economists have a long-run perspective. They recognize that business cycles are inevitable but believe they are self-correcting and advocate minimal government intervention in managing the economy.
  • Well? Who do you agree with?
  • So on the second day, God created The General Theory and John Maynard Keynes, And there was a Great Depression that took away many material gains, And the reserve army of the unemployed suffered from very sticky wages, And Keynes saw that there was insufficient demand and broke with the classical sages, And Keynes encouraged Washington to replace the invisible hand with many fiscal perks, And this made many people question whether or not the invisible hand really works, And government soup kitchens represented God’s goodness as everyone was fed, But God saw that it was depressing when Keynes uttered, “In the long run we are all dead.”
  • Well, not only does Robert E. Lucas and Milton Friedman agree with my theory they also find yours faulty
  • In the beginning, God created Adam Smith who penned The Wealth of Nations, And he decreed that wealth was not gold or silver but better productivity thru specializations, And Adam forbid all government intervention by favoring laissez faire. And this led to Classical stabilization policy during a depression of, “Just stand there,” And there appeared a new economic guidance system called the “invisible hand,” And every man pursued his own self-interest as labor was divided all over the land, And the invisible hand worked for the good of all as nations became wealthy. And thus did Adam create economics as God saw that it was good and healthy.
  • In my personal opinion, I lean more to Adam Smith's Classical Economics Theory. I do so because it sounds more adewuate within the spetrum of society and more important;y can suffice without the governments intervention, messing things up and benefitting more themselves.
  • More economists agree with Adam Smith's Classical Theory more than Keynes Theory
  • At least Paul Smauelson and Paul Krugman agree with my theory so
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