Settling the Adam Smith/John Maynard Keynes Debate Once & for All
Common Core National Standards RI.11-12.2 & W.11-12-2
Academic Vocabulary Component/ Refer & Review to your Academic Vocab Chart
Academic Vocab Words Studied: pivotal, efficacy, legacy, omnipresent, fiscal, monopoly
Opening Statement for whole class discussion : Here's a statement for us to discuss before we begin our study of Adam Smith & John Maynard Keynes: Economic Systems never change. The strengths & weaknesses of each nations system are static.
Students will read about two of most influential economic thinkers in history. The debate between Adam Smith & John Maynard Keynes has raged for years between those who believe that government should play a very limited role in the economy, & those who see government's fiscal role as pivotal in keeping the economy on an even keel & rescuing it from the depths of recession & depression. The question is should there really be a debate. That's for you to decide.
Students will read about two of most influential economic thinkers in history. The debate between Adam Smith & John Maynard Keynes has raged for years between those who believe that government should play a very limited role in the economy, & those who see government's fiscal role as pivotal in keeping the economy on an even keel & rescuing it from the depths of recession & depression. The question is should there really be a debate. That's for you to decide.
Students will be directed to organize information in a chart form using a note taking system that avoids any appearance of plagiarism or copyright issues. From that chart, students will write a position paper where they summarize & paraphrase the key ideas arguments & details of both Smith's & Keynes' arguments. Students will also summarize & analyze the ongoing debate. They will consider which thinker's ideas are most important in our current economic circumstances. Before writing their essays, students will post blog entries & engage in a blogsphere discussion to clarify their thinking before writing.
Accessing Prior Knowledge
From earlier in the year, recall our study of Adam Smith, free enterprise, & laissez faire.
What were Adam Smith's key ideas? Discussion
Also, recall our study of the role of government in a free market system. We are just now embarking on a study of government's fiscal policy. What are the accepted roles of government?
Also recall our study of centrally planned economies & government's omnipresent role? What was that role?
Also recall our study of centrally planned economies & government's omnipresent role? What was that role?
Compare & Contrast Top Hat Organizer
Directions: Set up a top hat organizer where you list the important ideas of both men. Students will also include the those things that the two men have in common. In the final analysis, students will take a position on the debate itself & decide where they stand: Is it appropriate to see the debate as an argument between two opposite points of view? 2) Where do their points of view differ? 3) What do they have in common.
Activate Mental Images
It's helpful for us to develop mental images of the subject matter of our reading. Refer to the pictures to see what Smith & Keynes looked like. For Adam Smith, he wrote in in the middle 1700s when Great Britain was the most powerful nation in the world. Smith was Scottish which is part of the Great Britain. We imagine men in long hair wigs & short pants with stockings. Naval shipping & trade using sailing ships was a big part of the economy.
For the life & times John Maynard Keynes we have to think of the 1920s, 30s & into the 40s. He too was from Great Britain. His ideas most directly dealt with the British economy but many of his ideas can be applied to our economic system as well. We might visualize the Great Depression in Europe.
Directions: Read the following essay. Place the major economic ideas of both Keynes & Smith in the top hat organizer. You must use the 5 word system (no sentences please) where each note can not be in a sentence & can not be more than five words.
Academic vocabulary assistance: good readers & serious students seek to understand content by familiarizing themselves with unfamiliar words. Here is a dictionary link to help you.
Dictionary Help
While Smith is largely credited with being the champion of Laissez Faire (government keep your hands off) policies he did recognize the need for government to undertake certain roles including
1) protecting the nation from outside invasion 2) enforcing laws 3) projects that benefit the public at large like roads & schools. Here's interesting quote from Smith concerning government:
“Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.”
John Maynard Keynes published his famous book The General Theory of Employment, Interest & Money in 1936. Here Keynes deals with a very specific issue that occurs within the capitalistic free market system: that being recession & depression & all of the negative problems that go along with it including business failures high unemployment & poverty in general. Keynes saw the problem basically as one of not enough aggregate demand for goods & services in the economy. Demand translates into spending; spending translates into positive economic activity like job creation & investment He believed that government could play a significant role in getting the economy back on track. If investors are unable or unwilling to invest & individuals are unable or unwilling to spend, the economy will spiral down & come to a standstill. When aggregate demand for goods & services are in crisis, there is no one else around to make up for this loss of demand except the government. Government has vast resources to spend on a grand scale & to borrow. By spending on various projects & hiring people itself, government can create more income & therefore more spending which leads to more growth in the overall economy. Government can also tax less which leaves more money in people's pockets to spend on goods. These activities by government are known as fiscal policy. Keynes also believed if the economy becomes too overheated & inflation (the general rise in prices) emerges the government can reverse itself & spend less & raise taxes to cut down on overspending, which is the root cause of inflation.
In our most recent economic recession, many of Keynesian techniques were employed. The government cut taxes; they allocated large amounts of funds for projects that employed many people; they gave many financial institutions large loans to keep them stable & they used monetary policy to keep interest rates low.
1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement
2) What issue or problem in the economy was Adam Smith addressing in the Wealth of Nations?
3) What problem was Keynes trying to solve with his writings? How does he think the problem can be solved?
4)How do you imagine the economies were different in Keynes' time as opposed to Adam Smith's time?
5) What did George W. Bush mean when he said at the point of the government bailout of the banks in 2009 that "we are all Keynesians now?"
6) What do you think Keynes thought about the self-regulating potential of market economies?
7) Ask for clarification on anything from the writing that you don't understand? Do it in a thoughtful way, explaining what it is you don't understand.
8) You can choose to comment on your schoolmates comments, adding support or extending their point or disagreeing. You must clearly explain your argument & offer reasoning or evidence.
Activate Mental Images
It's helpful for us to develop mental images of the subject matter of our reading. Refer to the pictures to see what Smith & Keynes looked like. For Adam Smith, he wrote in in the middle 1700s when Great Britain was the most powerful nation in the world. Smith was Scottish which is part of the Great Britain. We imagine men in long hair wigs & short pants with stockings. Naval shipping & trade using sailing ships was a big part of the economy.
For the life & times John Maynard Keynes we have to think of the 1920s, 30s & into the 40s. He too was from Great Britain. His ideas most directly dealt with the British economy but many of his ideas can be applied to our economic system as well. We might visualize the Great Depression in Europe.
Directions: Read the following essay. Place the major economic ideas of both Keynes & Smith in the top hat organizer. You must use the 5 word system (no sentences please) where each note can not be in a sentence & can not be more than five words.
Academic vocabulary assistance: good readers & serious students seek to understand content by familiarizing themselves with unfamiliar words. Here is a dictionary link to help you.
Dictionary Help
The Great Debate
Adam Smith Vs. John Maynard Keynes
The debate between free market capitalists who believe that government should not interfere with the workings of the free enterprise economy & those who maintain that the government has a crucial role in managing the economy has raged for generations. Those who advocate laissez faire policies are considered followers of Adam Smith, who thought & wrote in the middle 1700s. Those who believe in strong interventions of government are often referred to as Keynesians, because they followed the basic teachings of John Maynard Keynes. Adam Smith wrote in the middle 1700s during the age of the enlightenment & concerned himself primarily with need for the monarchies of the time to divorce themselves from domination of economic activity. Adam Smith was the first to offer an explanation of how a market based economic system works. His classic work, An Inquiry into the Nature & Causes of the Wealth of Nations was written in 1776. Specifically, the British monarchy was quite fond of giving monopolies to those with strong connections to the British crown. Smith who was a highly respected university scholar, argued that economic activity was being stifled by an inefficient system that held back the productive potential of independent entrepreneurs & businesses. Smith believed that free enterprise without intervention & control by the government, a stronger, more lucrative economy could be built & maintained. By allowing individuals to seek out & maximize their own self interest plus competition among businesses, a harmonious market system would be created. Smith believed that an invisible hand would rein other the market & there wouldn't be the need for government interference. The economy would be self-regulating. This became the battle cry of the supporters of a capitalistic, free market, free enterprise system. Today many people who believe the government interferes to the detriment of the economic system cite the work of Adam Smith. Adam Smith, like most economists up until the 1930s, did not concern themselves with the problem of unemployment.While Smith is largely credited with being the champion of Laissez Faire (government keep your hands off) policies he did recognize the need for government to undertake certain roles including
1) protecting the nation from outside invasion 2) enforcing laws 3) projects that benefit the public at large like roads & schools. Here's interesting quote from Smith concerning government:
“Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.”
John Maynard Keynes published his famous book The General Theory of Employment, Interest & Money in 1936. Here Keynes deals with a very specific issue that occurs within the capitalistic free market system: that being recession & depression & all of the negative problems that go along with it including business failures high unemployment & poverty in general. Keynes saw the problem basically as one of not enough aggregate demand for goods & services in the economy. Demand translates into spending; spending translates into positive economic activity like job creation & investment He believed that government could play a significant role in getting the economy back on track. If investors are unable or unwilling to invest & individuals are unable or unwilling to spend, the economy will spiral down & come to a standstill. When aggregate demand for goods & services are in crisis, there is no one else around to make up for this loss of demand except the government. Government has vast resources to spend on a grand scale & to borrow. By spending on various projects & hiring people itself, government can create more income & therefore more spending which leads to more growth in the overall economy. Government can also tax less which leaves more money in people's pockets to spend on goods. These activities by government are known as fiscal policy. Keynes also believed if the economy becomes too overheated & inflation (the general rise in prices) emerges the government can reverse itself & spend less & raise taxes to cut down on overspending, which is the root cause of inflation.
In our most recent economic recession, many of Keynesian techniques were employed. The government cut taxes; they allocated large amounts of funds for projects that employed many people; they gave many financial institutions large loans to keep them stable & they used monetary policy to keep interest rates low.
Checking for Understanding
Blog on
Respond to two the following prompts by blogging your comments below. If you have a Gmail account you will need to put in your logon info. If you don't have a Gmail account you will have to set one up. (It only takes a minute.) Make sure to you keep track of your password & other logon info. Do not share it with others. In order to get credit you must include your full name & the period number in your comment. You must also respond using well written sentences. Your responses must be supported with evidence & sound reasoning. You can certainly question any of the viewpoints presented, including the comments of other students, but you must include thoughtful reasoning. Always be respectful & serious. Respond to two of the following.1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement
2) What issue or problem in the economy was Adam Smith addressing in the Wealth of Nations?
3) What problem was Keynes trying to solve with his writings? How does he think the problem can be solved?
4)How do you imagine the economies were different in Keynes' time as opposed to Adam Smith's time?
5) What did George W. Bush mean when he said at the point of the government bailout of the banks in 2009 that "we are all Keynesians now?"
6) What do you think Keynes thought about the self-regulating potential of market economies?
7) Ask for clarification on anything from the writing that you don't understand? Do it in a thoughtful way, explaining what it is you don't understand.
8) You can choose to comment on your schoolmates comments, adding support or extending their point or disagreeing. You must clearly explain your argument & offer reasoning or evidence.
Discussion Task/Guiding Questions
Now that we have had a chance to dialogue via the blog, lets take a few minutes before you write to clarify a few important themes when it comes to understanding & applying the knowledge of Keynes & Smith. Here is a question that I would like everyone to discuss with a partner in Think, Pair, Share format. I will call on people randomly to respond & also give volunteers a chance to contribute.
Question: 1) In what way has Keynes & Smith influenced our economy today? Think about both the day-to-day operation of our economy & how the government responds to economic problems. Consider the economic system of the U.S.
Time to Write
Now that you have collected this information, it's time to write your summary. Your job is to write an explanatory text clearly encompassing the salient ideas of both Adam Smith & John Maynard Keynes. You must also describe the "debate" between hard line free marketers & Keynesian liberals. Your thesis must include a statement regarding the appropriateness & the degree to which the two men can be compared & contrasted. Carefully read the rubric provided below.
Rubric
4 Excellent; 3 Proficient; 2 not proficient; 1 inadequate
a) Introduce the topic; organize complex ideas so each new elements builds on that which precedes
b) develop the topic thoroughly by presenting the most significant & relevant facts
c) use a variety of sentence types, & transitions
d) use language that is specific to economics
e) provide a concluding statement that is supported by the details & evidence that precedes it.
Adam Smith & John Maynard Keynes Compared & Contrasted
Economic Theories of Adam Smith & John Maynard Keynes
Now that you have collected this information, it's time to write your summary. Your job is to write an explanatory text clearly encompassing the salient ideas of both Adam Smith & John Maynard Keynes. You must also describe the "debate" between hard line free marketers & Keynesian liberals. Your thesis must include a statement regarding the appropriateness & the degree to which the two men can be compared & contrasted. Carefully read the rubric provided below.
Rubric
4 Excellent; 3 Proficient; 2 not proficient; 1 inadequate
a) Introduce the topic; organize complex ideas so each new elements builds on that which precedes
b) develop the topic thoroughly by presenting the most significant & relevant facts
c) use a variety of sentence types, & transitions
d) use language that is specific to economics
e) provide a concluding statement that is supported by the details & evidence that precedes it.
Links
Here are some links if you want to learn more about Keynes & Smith
Paul A. London Adam Smith & John Maynard KeynesExcerpts & Quotes from Adam SmithKeynesian Economics in a Nut ShellAdam Smith & John Maynard Keynes Compared & Contrasted
Economic Theories of Adam Smith & John Maynard Keynes
Brittany Scott Period: 3
ReplyDelete1.Adam Smith didn't hate all government involvement. He believed government had to protect the people from invading countries, enforcing laws, and making projects the benefit the public. For example he had said“Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.”
3. Keynes was trying to resolve the economic problem by saying government can get the economy back on track.
This comment has been removed by the author.
DeleteI don't know what happened to my reply. It didn't turn out the way I wrote it. but nice job Brittany. Smith clearly maintained that government had some very specific roles.
DeleteThey both are famous about Economics, market, money and Employment.
ReplyDeleteTrue, they dealt with economic problems that each faced during their times
DeleteSihua Yan Period:3
ReplyDelete1.They both are famous about Economics, market, money and Employment.
2. Adam Smith believed that government had an important role to play.
What specifically are these roles? How do they compare with roles that are government has today?
DeleteJanette Magana PERIOD 3
ReplyDeleteadam smith believed that if government dosent interfere there would be better government
JOHN Maynards followeres think government use strong interventions
Yes, strong government interventions when they are called for.
DeleteJanette- don't you mean that if government doesn't interfere, there will be a better economy? Mr.Pierce
DeleteThis is a test
ReplyDelete.,
ReplyDeleteAnthony Ramirez
ReplyDeletePeriod 3
Adam Smith and John Keynes both wanted to improve the economy.
Yes, that is a key point. Maybe Keynes takes a lot of flack for being socialist, but he was basically he is talking about how to fix capitalism & free market economy so that it can survive.
DeleteTrue but can you give us some support for your assertions? Some detail please Anthony? Mr. P
DeleteTrue, need more detail. Blog on.......Mr Pierce
Delete1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement
ReplyDeleteFALSE, ADAM SMITH DIDN'T HATE ALL GOVERNMENT INVOLVEMENT, HE JUST WANTED ALL WORKS AND PROJECTS TO BENEFIT THE PEOPLE. HE WANTED PEOPLE TO MAXIMIZE AND REACH OUT TO THE OWN INTEREST. HE ACTUALLY WANTED THE GOVERNMENT TO BE IN CHARGE OF CERTAIN THINGS LIKE ENFORCING LAWS AND PROTECTING THE NATION FROM OUTSIDE INVASION. SO THE STATEMENT ABOVE IS FALSE, ADAM SMITH WAS NOT COMPLETELY AGAINST GOVERNMENT INVOLVEMENT.
nice comment.You are absolutely right on. Well written argument livi. He gets characterized as believing in no government, so many of his followers think there should be no government in economics, but that's not true as you pointed out. Many of his followers are anti government unnecessarily.
ReplyDeleteRachel Gonzalez, Per.5
ReplyDeleteAdam Smith believed in the free- enterprise without intervention.
John M. Keynes believed in government using a strong intervention.
What did Keynes believe about free enterprise? Do you think he believed in a free market system. Was he trying to fix its flaws?
DeleteRosanna Ascencio P.5
ReplyDeleteKeynes believed in government intervention while Smith believed the government shouldn't get involved. Such a great website.
Thanks Rosanna. I hope you enjoy it! Did Smith believe that there should be some government involvement, like maintaining order? That sort of thing. Please respond ASAP. Mr. Pierce
Deletethis is a very helpful website to understand in formation about Adam smith and John Maynard. 5th period
ReplyDeleteThanks Jannet. I'm looking forward to your responses to the prompts. Or have you already. I'm losing track of so many posts.....Woe is me
DeleteMr. Pierce
Erica Widas 5 period...
ReplyDeleteAdam smith believed that an Economy would run smoothly with out the governments help. John M.Keynes believed that the government should be more involved to help an Economy.
this is a very good source keep up the good work from period 5
ReplyDeleteAdam smith disagreed with government monoplies while John Maynard Keynes believed the government could play a good role in getting the economy back on track -Dora Otero 5th period
ReplyDeleteFirst of all I love your symbol Rasta Orangutan. Your statements are true. You need to include more detail, more explanation- how could government play an improtant role; why did Adam Smith oppose monopolies? Mr. Pierce
DeleteYou go Dora, Now let's take it a step further: How could government help to get the economy back on track? Please explain. Mr.Pierce
DeleteThe major difference between adam smith and john maynard keynes is that smith wanted no government intervention while keynes believed in just the opposite. period 5
ReplyDeleteDoes that mean that Keynes believed in a command- centrally planned economy?
DeleteAdam Smith's believed that the market should run with laissez faire policies while John Maynard Keynes believed that government should be involved in the market because it had key roles in it.
ReplyDeleteTell me about those roles. S. Pierce
DeleteAlistar Barragan Period 5
ReplyDelete1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement
Adam smith never "Hated" the government. In fact he supported the government in enforcing and regulating many of Americas laws. Adam Smith wanted everything (or as much as possible) to benefit the people of america, Although many times the government did not support his "for the people" beliefs Adam never hated the government. he knew that the government was essential in creating the the nation.
So Alistar would you say that those today who hate all aspects of government aren't really followers of Adam Smith?
DeleteZuly Alvarez Period 5
ReplyDelete1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement
this statement is false because he didnt hate all of government involvement. he wanted the government to be in charge
In charge of what? I don't think he wanted the government to be charge of the economy. In fact I think that is what he opposed strongly. He did see a role for government, however.
DeleteAdam smith believed in free enterprise without intervention while John Maynard Keynes believed raising taxes to cut down on overspending which can cause inflation.-period 5 oscar esparza
ReplyDeleteWhat did Keynes believe should happen when there is recession or depression?
DeleteOscar what kind of intervention didn't Keynes believe in- totally none; in the market place itself? Mr. Pierce
DeleteLucero De La Torre Period: 6
ReplyDelete3) What problem was Keynes trying to solve with his writings?
-Due to the depression Keynes was attempting to find a solution to the economic downfall. Within his writings his philosophy contemplated on the significant role the government would play if it were to be involved in the economy. He believed the government would place the economy back on track by cutting taxes so people may the opportunity to spend money on other goods.
Well said Lucero! Cuttling taxes was one way, but how does that help a sagging economy? What other governmental measures did he suggest? Looking forward to your response. Mr. Pierce
Delete2) Adam Smith was arguing that the market that was being used in the monarch times of Britain was inefficient, and that this government intervention stopped the potential of businesses and entrepreneurs. He believed that an economy free of government interventions would become a more lucrative economy. And this economy would become self regulating.
ReplyDelete3) Keynes was trying to solve the problems of Recessions ,Depressions in the free market style economy and all of the negative externalities such as business failures and high unemployment. He believed if government would be more involved they could regulate the economy by producing more jobs which means more money in peoples pockets or by cutting taxes again giving people more money to spend. This increase in spending would then translate to an increase in the economy. The government could also stop growth by cutting jobs and raising taxes to stop the economy from getting out of hand.
-Ruben Gonzalez Period 6
Great summary Reuben. I think you have a good understanding of both men's ideas. one thing, Depression or other economic downturns are not considered negative externalities. In a way they might be, but not generally considered as such by economists.
DeleteYes, thoughtful post, Lucero. Keynes did deal with the issue of unemployment. There are some other ways the government could help a sagging economy such as investing in projects & hiring more people to make up for the lost demand in the economy.
ReplyDelete1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement
ReplyDeleteHate is a very strong word for Smiths feelings toward the government. All he wanted was for the people to have free control over their own market. Smith wanted the government to play a roll in national defense to protect the United States and enforce laws.
Yes, Michael it is a strong word & you were correct in challenging its harshness. Smith clearly did see a strong role for government.
DeleteMr. Pierce
1) Adam Smith preferred not to have any government involvement within the economy but acknowledged that some government intervention is useful such as enforcing laws, protecting the nation from outside invasions, and projects that benefit the public like roads.
ReplyDelete4)During the age of enlightenment (Smith's time) the economy was being run by the crown so Smith believed there should be no government involvement, while in Keynes' time the economy was down due to the Great Depression so he believed the government needed to be more involved to help put the economy back on track.
-Valerie Mattes Period 6
Yes, Valerie you address the fact that these two men wrote in distinctively diferrent times & faced distinctively different problems. So, how should we go about comparing them? I would suggest we go about it very carefully? Good post. Get some sleep.
DeleteMichael Escalante Period 6
ReplyDelete1) Adam Smith wasn't against all forms of government involvement. He thought government had to protect the people and their rights. He was strongly against how the rich had way more rights than a poor person even though they are both citizens living in the same country. For example shown in this quote he said “Civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.” He was strongly against how the rich had way more rights than a poor person even though they are both citizens living in the same country.
3) Keynes was trying to fix the economic problem at hand by saying the government can get the economy back on track where it needs to be.
Both Wanted to Fix the Economy in their own ways.
Strong thorough argument Michael. Hard to disagree. Well done!
DeleteMr. Pierce
he believed that goverment could take affect in both recession and depression with the knowledge of knowing government can borrow on a larger scale using more resources. government can control the tax which during recession can be lowered at a certain given time
ReplyDeleteWhich prompt are you addressing Rogelio? What should the government do specifically according to Keynes. Please respond
DeleteAdam Smith believe that the government should not interference in the market and John Maynard believe that should be strong interventions in the goernment
ReplyDeleteJose reread, make some corrections & repost. Remember to include your period number & which prompt you are addressing. Thanks Mr. P.
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteAdam Smith hated any and all government involvement. He wrote In the middle 1700's during the age of the enlighenment and concerned himself primarily with the need for monarchies to divorce themself from domination of the economic activity. He believed that free enterprise without intervention and control by the government a stronger more lucrative economy could be built and maintained by allowing individuals to seek out and maximize their own self interest and competition amoung businesses a hormonious market system would be created. The issue Adam Smith was adressing in the Wealth of Nations was that economic activity was being stifled by an inefficient system that held back the productive potential of independent entrepreneurs and businesses.
ReplyDeleteCristina I think the text you read contradicts your thesi. Adam Smith did think government had important roles. Also use more of your own words instead of what's in the text. Mr. Pierce
DeleteAdam Smith wanted the government to let the people handle their own in the economy because he believe that things would fix themselves but he wasnt totally against government help, if war was near he believed then it was time for the government should step in
ReplyDeleteHey Edward. i agree with your analysis of Smith. Was war the only time that government should get involved? What are some other possible circumstances? Mr. Pierce
Delete1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement
ReplyDeletethey are both famous for economics and money, power.
Rafael- the prompt asks about government's role. Your response doesn
Deletet address that. Please reconsider & blog back. S. Pierce
(Question.1) Question one states that Adam Smith wanted no involvement of the government. This is fiction due to Adam Smith wanting the government to protect the people and their beneficial projects by enforcing laws as well as protecting the nation from any invasion outside the U.S. Period.1
ReplyDeleteYes, geat use of direct evidence from the text itself. Good job, Michael in hitting the prompt head on. What kind of projects could be beneficial to the people? What type of projects do you think would be beneficial to the people today? Please respond as soon as possible. Thanks Mr. Pierce
Delete6. economy becomes too overheated & inflation (the general rise in prices) emerges the government can reverse itself & spend less & raise taxes to cut down on overspending, which is the root cause of inflation.
ReplyDeleteThe prompt asks about wht Keynes thought about a self regulating (invisible hand style economy, which was Adam Smith's big idea. So do you think Keynes thought there was flaws in Smith's construct?
DeleteGet back to me as soon as you can please. Mr. Pierce
1) This statement is false because he says that government was needed. But, he believed in Laissez Faire which means keep your hands off. He stated that there should be some government invovlement, He thinks that there are three reasons why the government should be invovled. One is by protecting the nation from outside invasion. Also, enforcing laws, and projects that benefit the public at large like roads and schools.
ReplyDelete- Sarah Mcelroy period 1
Good summary of Smith, Sarah. Can you think of other things the government should do? How do you feel about the safety net?
DeleteMr. Pierce
1) This statement is false because Although Adam smith was part of the laissze fair (government keep your hands off) polices he did recognize the need for governtment to undertake certain rules.He stated three reasons why you need government.The first one is protecting the nation from outside invasion and inforcing laws. lastly projects that benefit the public at large like roads and schools. juanita mendoza
ReplyDeleteGreat analysis Juanita. You nailed Smith's sense of what government should do. How is Keynes' view of government's role different? Get back to me as soon as you can please. Mr.Pierce
Delete1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement
ReplyDeleteThis statement is false because adma smith did recognize that government was needed to undertake certain roles including protecting the nation from outside invasion, enforcing laws and projects that benefit the public at large like roads & schools.
Good response. Does government have any of these rolls today? Explain.
DeleteS. Pierce
1) the statemnet was false because Adam smith did recognize the help of the government in protecting the nation.
ReplyDelete5) What did George W. Bush mean when he said at the point of the government bailout of the banks in 2009 that we all Keynesians now?
He was to say thatthe government was strong by closing down the banks in 2009.
True, Adam Smith hated any if not all of government involvent. He thought that the government should only protect the country, enforce laws, and work on projects that would benefit the country. He believed that free enterprise without intervention & control by the government the economy would be stonger and easier to maintain.
ReplyDeleteIn the Wealth of Nations, the issue that Adam Smith addressed was that monarchies should divorce themselves from domination of economic activity and that an inefficient system was holding back productive potential of businesses.
Andrea Rivas Period 3
Most of what you said is very sophisticated & on the money, but I'm wondering if your conclusion that Smith hated all government is contradicted by your own evidence: Is it fair to say that Smith hated all government if he in fact felt government had legit roles in protecting the country, enforcing laws etc. Other than that Andrea your comments reveal solid thinking. What do you think?
Delete1)Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement
ReplyDeleteThis statement is true. In the writing above shows this, " Smith who was a highly respected university scholar, argued that economic activity was being stifled by an inefficient system that held back the productive potential of independent entrepreneurs & businesses. Smith believed that free enterprise without intervention & control by the government, a stronger, more lucrative economy could be built & maintained."
5) What did George W. Bush mean when he said at the point of the government bailout of the banks in 2009 that we all Keynesians now?
By saying this he men't that when the government bailed out banks in 2009 that was a sign of strong government involvement in the market. These was a ideal of John Maynard Keynes market structure.
Eric- I really like your response to #5. You are the only one so far that tackled this one. I think your comments are very sopisticated. George W. Bush was a fiscal conservative who, no doubt, leaned heavily toward the laissez faire, Adam Smith side of the debate, but he had to admit when it came down to the financial melt down, Keynes propositions had to be employed: the governent had to bail out the banks with government spending (loans) in order to save the financial system. Now that the crisis is over what do you think "W" would say now! I'm interested in your ideas. Please write back ASAP. Mr. Pierce
Delete1) What can you say about the differences in the ideas of two men?
ReplyDeleteSmith didn't approve of government involvement. He believes that a stronger, more lucrative government can be be made.
2) Adam Smith believed that being under the British monarch time was inefficient. Also that government intervention stopped businesses and entrepreneurs. That this economy would become self regulating.
-Vincent Ponciano period 1
Vincent- In your #1, Smith didn't belive any government at all? Look for evidence that supports your statement? Is there anything there that refutes your thesis. Please blog back as soon as you can. Thanks. Mr. Pierce
Delete1) Adam smith wasent against the forms of government he thought the gov had to protect them and the poeple
ReplyDelete3) Keynes was trying to fix the economic problem at hand he said the government could get the economy back on track where it has to be.
Omar, I don't disagree with your conclusion in #1. Not quite sure of your supporting evidence. Mr. Pierce
Delete(Question.2) Adam smith argues in his book Wealth of Nations that if the government were not involved in the market that it would be much stronger and better this is known as laissez faire. Period.1
ReplyDeleteOmar- which economic problems was Keynes trying to fix? (your#3)
ReplyDelete(Your #1) unclear as to what you mean by forms& who is"them"
Please respond ASAP. Mr.Pierce
Alvaro period 3
ReplyDelete1) Adam Smith did not hate all goverment interaction he recognized that the goverment was needed for protection of outside invasion, la enforcement, and for public good projecrts such as roads and public education.
leslie moreno period 3
ReplyDelete1. adam smith didnt hate the government he jsut wanted people to have there rights like this quote "economy could be built & maintained by allowing indivicuals to seek out & maximize their own self interest plus competition among businesses, a harmonious market system would be created."
3. Keynes wanted a free market system he wanted to get the economic system back on track.
Q#1- Adam Smith was for the government to not be involed with the peoples market.
ReplyDeleteQ#3- Keynes truly belives that the government well fix the countries econmy and out it back on track.
what goerge bush ment is that now with the goverment bailout that we now have to much goverment power just like keynes wanted and as conservitives we want to have the least possibel goverment involvment so this was a bad thing and we were doing down the wrong path not fallowing the teachings of adam smith Dominic Dazzo p.3
ReplyDeleteWas Bush admitting that we need more government to solve a big problem like a serious serious recession? S. Pierce
Delete2) In Wealth of Nations Adam Smith argues that the British monarchy gave monoplies to only a certain few that had ties to the king and that limited the potential of the market since he believes that if the goverment would keep out completely the market would watch over itself so called the "invisible hand" and therefore be more efficient.
ReplyDeleteChazvorath Chhay Period 3
ReplyDelete2) Smith’s radical insight was that a nation’s wealth is really the stream of goods and services that it creates. Smith believed that a country’s future income depends upon this capital accumulation. The more that is invested in better productive processes, the more wealth will be created in the future.
4) Each economist has similar ideas yet different opinions that distinguish them as economic leaders.Smith used economics to address some of the most critical political issues of the day. He opposed any form of economic concentration because he believed that it distorts the market's natural ability to establish a price that provides a reasonable return on land, labor, and capital. Keynes revolutionary theories on supply, demand, and unemployment led to the first use of government programs to help manage the nation’s economy. Keynes created Keynesian economics which is a theory of total spending in the economy, also called aggregate demand, and the effects on output and inflation.
You did some additional research. I'd rather see it in your own words. Explain what is captial accumulation?
DeleteS. Piece
Adam smith dident hate all goverment involvment he just wanted a small goverment to only control civil needs and to protect the pepol from invading armies Dominic dazzo p.3
ReplyDelete1. Adam Smith believed in that an invisible hand would run the market, so it wouldn't be necessary for the government to interfere. The market would self regulate.
ReplyDelete3. John Maynard Keynes believed that the government could spend a lot to get rid of the problem of low demand and services.By having the government spend more, they can create more income which will lead to more spending and then to an economic growth.
-Giovanni Peraza
Period 3
Gio take a second look at how Keynes said the government could deal with the problem of insufficent demand in the economy. Your description in #3 needs clarification. Please rewrite S. Pierce
Delete1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement.
ReplyDeleteAdam Smith actually beleived that the government played important roles in the economy. The government would be able to help the people by making laws and protect them from invading countries.
6) What do you think Keynes thought about the self-regulating potential of market economies?
I believe that Keynes thought that it would be foolish that the economy could be self-regulating. He believes in government intervention and without the help of the government the economy would spiral down. There would be no petential without the gov't.
- Ivonne Orozco. Period1
Ivonne Was it only poor people that Smith wanted the government to protect? Yes I think you are correct about Keynes: he didn't believe totally in the idea that markets are self-regulating. What is the evidence of this? Respond when you can. Mr. Pierce
DeleteJacob Craig Period 3
ReplyDeleteQuestion7. What i think keynes thought about the self-regulation potential of market economices is it wouldn't last, because inflation would raise if the government wasn't there to help the economy.
Question3.
What problems Keynes was trying to solve wiht his writings was the era of the great depression, and how to fix the economy so this would never happen again. Keynes appoarch solving the problem by explaining how the government could help the economy by taxing less, which gives people more money to spend on goods. if inflation raises the government could reverse the taxes and tax more, to lower inflation
Agreed Jacob I think you could state it more clearly, but yes the mere fact that inflation did arise & it appeared to be within government's ability to do something about it, strongly sugests that Keynes did not believe totally in the invisible hand. Could it be that the economy in Smith's time was primitive compared to the economy in the time of Keynes? What do you think? Post back to me please. Mr. Pierce
Delete2.Smith believes that government itself must be limited. Its core functions are maintaining defence, keeping order, building infrastructure and promoting education. It should keep the market economy open and free, and not act in ways that distort it.
ReplyDelete6.Bush Refers that we are keynesian because the theories advocatring governmenht monetary and fiscal programs designed to increases empolyment and stimulate business activity. One whom is a Keynesian is a suppoeter is Keynes economic theories.
Period 3
Demitrius- love your use of the word infrastructure. Nice summary of Smith's position on government. What could have caused Pres. George W. Bush, who was certainly someone who was strongly to in the Adam Smith camp to suddenly annouce that Keynes' ideas rule? Please respond. Mr. Pierce
Delete1) Adam smith did not like the involvement of the gov, "Smith believed that an invisible hand would rein other the market & there wouldn't be the need for government interference".
ReplyDelete3) john Keynes was trying to solve specific problems that were in the capitalistic free market system, witch were business failures high unemployment and poverty. he believed that more investors should invest more and the economy would go up, the government played a big role as well because the government has vast resources to spend on a grand scale and to borrow.
Sergio Contreras
P.3
Tatee Rodiles:
ReplyDelete1) Adam Smith did not hate all gov interfierence, he believed in free market but also believed thats ome gov was necessary to enforce laws, protect from invasion, etc.
2)Keynes thought that government involvement could help the economy and keep it steady
2.) Adam smith was addressing that we are becoming to dependent on the governments role in the economy rather than on our own individual stand point in the matter.
ReplyDelete5.) George W. Bush meant that we are all siding with the government to take control and make very serious decisions which will in turn make the government even more powerful than it already is, being a "Keynesians" we are supporting the government to a fuller extent
Gary, remember the time period in which Smith wrote. I think it is safe to say that people weren't very dependent on government back then. What economic problem was he really addressing?
DeleteIn your #5 Do you think the government did the right thing in bailing out the banks & General Motors by giving them huge loans? Was it only to help these powerful companies or did others benefit as well? Looking forward to your response. S. Pierce
Dominic- right on! Do you think he would have agreed with the decisions made in 2007, 08 & 09 by the government to bail out the banks by loaning them lots of money? Please explain. Mr. Pierce
ReplyDeletePeriod 3
ReplyDelete3) What problem was Keynes trying to solve with his writings? How did he approach solving the problem?
Keynes was trying to solve the problems caused by recession and depression which include business failures, unemployment, and poverty. Keynes believed that if the government played part in the economy then the government could better the economy and regain momentum for the economy. The participation of the economy in times of recession and a depression can create more economic activity and increase spending and income according to Keynes.
6) What do you think Keynes thought about the self-regulating potential of market economies?
Keynes obviously did not believe in a self regulating economy. Keynes's whole theory revolves around government interaction in the economy. Keynes did not really believe the economy could be self regulating therefore he created a theory that would help the economy with government interaction.
7) Ask for clarification on anything from the writing that you don't understand? Do it in a thoughtful way, explaining what it is you don't understand.
ReplyDeleteMR, PIERCE
I AM NOT SURE HOW JOHN M. KEYNES WANTED SOCIETY TO BE LIKE. I UNDERSTAND HOW ADAM SMITH WANTED PEOPLE TO MAXIMIZE THEIR SELF INTEREST AND WANTED THE GOVERNMENT TO STAY OUT OF PEOPLE LIFE IN THAT SITUATION... BUT HOW DID JOHN M. KEYNES WANT THE SOCIETY TO BE? DID HE WANT THE GOVERNMENT TO BE COMPLETELY IN CHARGE OF THE PEOPLE AND TELL US WHAT TO DO, AND WHAT NOT TO DO ?
CAN YOU PLEASE EXPLAIN TO ME JOHN M. KEYNES BELIEFS MORE CLEARLY PLEASE (:
BY THE WAY YOUR A GREAT TEACHER !!(:
Very thoughtful question: Some people wanted to say that Keynes didn't believe in free market, but I think he was trying to make the fre market capitalistic system work right & he realized that it's not simply up to competition & people seeking their self- interest. Sometimes things get messed up & there aren't enough jobs for people to have a livlihood. Government has to step in. Really to keep things working government has to keep its finger on the economy all of the time. I think he was really about how to help people. S. Pierce
Delete1) No, Adam Smith did not hate all government. He agreed that the government should have some involvement with things like public goods such as dams, parks, education and roadways in which it would be impractical for the economy or individual citizens to pay for or maintain. Adam Smith was the first person to realize that the economy was a self sufficient market and believed that it would be able to sustain itself without government involvement which could cause imbalance. He believed that the economy should control the economy, and the government can control public goods, but no mixing.
ReplyDeleteKeanan- I really like your appropriate use of the term public goods from earlier this year. I would characterize Smith's view of self-sufficient markets slightly different than the way you did by simply saying, Smith thought that markets could be or should be self-sufficient. At his particular point in history, he was arguing for government to leave the markets alone. Do you think markets can run according to Smith's plan? What's the evidence one way or the other? Blog back please. S. Pierce
DeleteWhat problem was Keynes trying to solve with his writings? How did he approach solving the problem?
ReplyDelete---- Keynes was trying to resolve the problem of the
Great Depression by basically telling the government what to do and what not to do. Keynes believed that when there was a problem in the economy, the government had the capacity to change its path. For example, Keynes believed that the problem during the Great Depression was that there was not enough aggregate demand ( the total demand for final goods and services in the economy at a given time and price level). He believed that if the government did certain things, the economy would get better, because it was not going to fix its self. ----
6) I think Keynes thought that the self regulating potential of the market was flawed. He believed we NEEDED government to have success in the economy because we have had downturns such as the depression and recession. With government involvement he probably thought that it would help prevent economic downturns and the economy would continue to prosper. However, The government has enough problems keeping itself stable, they shouldn't have the capability to hurt the economy too with government problems. As we've seen through command economy we know that government control should not be too heavy, the country needs breathing room to regulate itself. Its managed to survive this long, i don't think we need government intervention to keep going. And even if the economy completely destroyed itself, its not like the government would allow the economy to collapse. They would get involved either way. Government assistance can be helpful but it can be destructive too.
ReplyDeleteAmy Perez, Period 4
ReplyDelete1. Adam Smith did not hate "any & all government involvment" as his main belief is centralled around the idea that a free enterprise system that receives no government involvment and is allowed to regulate itself will prosper in strength and lucrativity. The economy will grow in a postive direction with the help of the invisible hand, the self-regulation of the market place. Also, Smith understands the necessity of government in other aspects such as protecting the nation from outside invasion, enforcing laws, and projects that will benefit the public.
3. John Maynard Keynes wrote a book entilted "The General Theory of Employment, Interest & Money" as an attempt to resolve the issues regarding recession, depression, business failure, high unemployment, and poverty. The problem that led to all of these issues stems from the fact that there is not enough aggregate demand for goods and services within the economy. By allowing the goverment to become involved, Keynes believed that the economy had the opportunity to improve. The government has the ability and recourses to create work and spending, thus leading to an increase in the overall income and employment.
1) Adam Smith didn't hate all government because he believed that the government can assist the public in protection, enforcing laws, and public benefits (schools, roads, etc.).
ReplyDelete2) Adam Smith addressed the concerns of government intervention in the economy. He believed that the economy was under a system that wasn't good enough for the economy. The system held back production of products that entrepreneurs and businesses made. Free enterprise without interventions would allow individuals to seek out get the most out of their self interests. The economy would be self-regulating.
- Steven
1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement.
ReplyDeleteAdam Smith believed that the Government plays an important role in the economy. The government would make laws to protect people from invading countries
2) What issue or problem in the economy was Adam Smith addressing in the Wealth of Nations?
Smith believes that government must be limited. Maintaining defense, keeping order, building infrastructure and promoting education is its core functions.
-Erik Gurrola
Anthony Ramirez Period 4
ReplyDeleteI believe that the times in which Smith lived and the time that Keynes lived had similar problems but had different social and cultural differences. they both attempted to help the economies through their own designs and left their own image on some part of society.
1) Well Adam Smith, was a well known man throughout the 18th Century in which most of his philosophical teachings took root in Europe. The question in which Adam Smith hates all government involvement is not specific enough. Does he hate involvement of the Government as a whole? Or does he hate involvement from the Government in purely economics? I will address the latter as it seems more fitting to the educational context. Well Adam Smith is a strong believer in free enterprise, capitalism and the laissez faire. He believed that with no Government involvement the economy would prosper. He states that the Government is stagnating the economic potential of the entire nation, without Government interference in the economy, citizens would pursue their own interest and the economy would self-regulate. However Adam Smith is not against all government involvement. He theorized that the Government should defend the nation from invasions, and also provide necessary public services such as roads, public schooling and even law enforcement!
ReplyDelete3) John Meynard Keynes is often though of as the opponent of the Adam Smith regime. He fancied the idea of necessary Government Regulation. In John Meynard Keynes' book "The General Theory of Employment, Interest & Money". He addresses very specific issues that can not be solved with Free Market Capitalism. The issues that he states in his writings are constant problems with Capitalism such as Recession, Depression, Poverty, Unemployment, and high business failures. He viewed these issues, as a lack of demand in the entire economy. He wrote that the Government is the largest consumer, and thus, can provide a boost, of sorts to the economic system and as a result lower taxes. This places more money into the pocket of the average consumer and therefore the economy is supreme.
Period 4
Travis, this is a very sopisticated response. You really have the ideas of both men "down" very well. I'm a little confused in your comments concerning what it is that Smith hates. You do make the point that he certainly doesn't hate all government & that is an important point. Nice job
DeleteTina Khut P 4
ReplyDelete1. Adam Smith didn't hate government. He believed that economy could stand on its own without the help of government. This would allow individuals to use their skills in competition so a good market system could be created. Government should have been taking higher roles like projects, protection, and enforcement according to Smith. He strongly believed in laissez faire.
6. Keynes believed that a self regulating in market economies wouldn't be able to stand alone. He believed that they needed the governments help to keep it on track
3) What problem was Keynes trying to solve with his writings? How did he approach solving the problem?
ReplyDeleteKeynes was criticizing the capitalistic free market system for its lack of equality and support for both the consumer and producer. Within a free market, the negatives of a recession would hit the producer or consumer without a barrier to shield most of the damage; in this case, the barrier serves as a metaphor for the government. If the government were to play a significant role in the free market, although the market would no longer be considered “free”, individuals would be able to feel safer knowing the government would be able to aid if necessary.
6) What do you think Keynes thought about the self-regulating potential of market economies?
Keynes was an advocate of a government-dependent economy. The market economy Keynes addressed dealt with the issues market economies face, which includes high unemployment and market failure. With the self-regulating free market that Adam Smith stressed, the problems Keynes saw in it overshadowed the idea that a self-regulating market would be efficient. Smith saw the market as a capitalistic heaven, but failed to include the disclosure that this type of market was dependent on consumers as much as producers. Keynes’ view on the free market was that if an investor were not to invest in the free market, there would be a shortage of demand, which would affect the overall supply in the market. If the government were to play a significant role in the market, these issues would be avoided because when faced with disequilibrium in demand and supply, the government would make up for the losses whereas in the free market, individuals would be left to figure out their own problems.
-Patrick Khamvongsod, 4th period economics student at CVHS
Jose Rivera Gomez
ReplyDelete1)Adam Smith didn't necessarily hate all government interference. He believed that the economy should not be restricted by the government but he believed that the government should provide other neceary services such as protection from enemy invasion and to enforce laws to keep the public in control
Jose- very concise & clear response tht gets right to the heart of the matter. How do you think Keynes's view of the role of government differs? Get back to me when you can. S. Pierce
DeleteJesse Rivera (Period 4)
ReplyDelete1) Adam Smith may have strongly opposed any and all government involvement but he like the Grinch who stole Christmas grew a heart for it in the end and realized that some government involvement is necessary in order for this country’s economy to run fluidly. He believed that the government should help out with this “back bone” of the economy like protection from outside forces, law enforcing, and projects that benefit the public like parks and schools. All these necessities that Americans can’t pay for will help out the current and next generation of workers.
5) What George W. Bush meant on his statement about the government bailout of the banks in 2009 “We are all Keynesians now” was that we, who followed the ways of capitalism since the beginning of America’s economy, have always had the idea of a non-involved government in America. But in 2009 America beliefs have seemed to be contradicted by the government’s bailout.
3) What problem was Keynes trying to solve with his writings? How did he approach solving the problem?
ReplyDeleteKeynes was attempting to solve the economic struggles the country was going through. he approached the situation by stateing that He believed that the government could play a big role in getting the economy back on track
1) ) Adam Smith didn't hate all government because he believed in Laisse Faire and that the government can only assist the public in protection, enforcing laws, and public benefits like schools and roads.
ReplyDelete-Lexy Cordova Per. 5
Allistar- What were the struggles the nation was experiencing? How did he recommend they be dealt with? S. Pierce
ReplyDeleteGet back to me ASAP please.
Mr. Pierce
3) Keynes was trying to solve the problems of the Recession, Depressions in the free market economy and all of the negative externalities such as business failures and high unemployment.
ReplyDelete-Lexy Cordova Per.5
Very clear & accurate statements until you talk about negative exteralities. Remember how economists define externalities? Are these bad economic conditions considered externalities? S. Pierce
Deleteperiod 5
ReplyDelete1)Adam Smith did not hate all gov interfierence, he believed in free market but also believed thats ome gov was necessary to enforce law
3) john Keynes was trying to solve specific problems that were in the capitalistic free market system
1)Adam Smith believed that government should not interfere with the workings of the free enterprise economy & those who maintain that the government has a crucial role in managing the economy has raged for generations. Which is proof he hated goverment interferance.
ReplyDelete3)Keynes writings were about the recession & depression & all of the negative problems that go along with it including business failures high unemployment & poverty in general. He saw the problem as one of not enough aggregate demand for goods & services in the economy. -Dora Otero 5th period
1. Although Adam Smith believed that without the interventuion and control by the government the economy would be better built and maintained, he did not hate all government involvement, he believed the government was needed for certain roles like protecting the nation from outside invasion, enforcing laws, and projects that benefit the public like roads and schools.
ReplyDelete2. The issue Adam Smith was addressing in the Wealth of Nations was that he thought economic activity was being stifled by an ineffiecient system that held back the productive potential of independent entrepreneurs and businesses.
-Alyssa Washburn Per.5
Good description. One request: Try to put more in your own words. Please paraphrase in reply post. Mr. Pierce
DeleteAdam Smith may have strongly opposed any and all government involvement but then he realized that some government involvement is necessary in order for this country’s economy to run fluidly. He believed that the government should work as the nations back bone.
ReplyDelete-Jesus Trigueros Per.5
ReplyDelete1.)Smith believed that free enterprise without intervention & control by the government, a stronger, more lucrative economy could be built & maintained.
6.)Keynes saw the problem basically as one of not enough aggregate demand for goods & services in the economy. Demand translates into spending; spending translates into positive economic activity like job creation & investment He believed that government could play a significant role in getting the economy back on track.
Jesus- There's some text missing in #1. Please correct ASAP Thanks
DeleteS.Pierce
Rosanna Ascencio
ReplyDeletePeriod 5
2) In Wealth of Nations Adam Smith was addressing the problem of government getting involved in economic activity and that the government’s control was inefficient that was holding back individuals and business from seeking their own wealth and making the economy better.
5) George W. Bush meant saying that the government bailout of banks made all us Keynesian by the government playing a significant role in helping the economy something Keynes believed in as in the 2009 economy was spiraling down and the government intervened
1) "Adam Smith wrote in the middle 1700s during the age of the enlighenment & concerned himself primarily with need for the monarchies of the time to divorce themselves from domination of economic activity. Adam Smith was the first to offer an explantion of how a market based economic system works." He believed that self-interest, competition, and the invisible hand would create a self-regulating economy without the intervention of the government.
ReplyDelete3) "John Maynard Keynes published his famous book The General Theory of Employment, Interest & Money in 1936. Here Keynes deals with a very specific issue that occurs within the capitalistic free market system: that being recession & depression & all of the negative problems that go along with it including business failures high unemployment & poverty in general."
period 5
Kevin- We don't need passages ( long quotes) from the essay. Respond in your own words directly to the prompts please. Please redo. Thanks Mr. Pierce
DeleteCarina Partida, Period 5
ReplyDelete1) Adam Smith did not hate ALL government involvement. Sure Smith was credited for believing in laissez faire policies and that the economy is self-regulating but, he did admit to some good that can come from the government. He recognized the need for government when it comes to protecting the nation from outside invasion, enforcing laws, and building projects like roads and schools that benefit the public overall.
2) In the Wealth of Nations, Smith was addressing the problem of the monarchies. At the time, during the mid 1700s, monarchies dominated all economic activity. Adam Smith believed that the self-interest of individual businesses could successfully drive the economy, otherwise knows as the invisible hand. He argued that economic activity was being stifled by the monarchs who were holding back the productive potential of independent entrepreneurs & businesses.
zuly alvarez period 6
ReplyDeleteSmith believes that government itself must be limited because its core functions are keeping order encouraging education. It should keep the market economy open and free
Keynes wanted a free market system he wanted to get the economic system back on track.
ReplyDeleteErica Widas Period 5
ReplyDelete1) Well Adam Smith, was a well known man throughout the 18th Century in which most of his philosophical teachings took root in Europe. The question in which Adam Smith hates all government involvement is not specific enough. Does he hate involvement of the Government as a whole? Or does he hate involvement from the Government in purely economics? I will address the latter as it seems more fitting to the educational context. Well Adam Smith is a strong believer in free enterprise, capitalism and the laissez faire. He believed that with no Government involvement the economy would prosper. He states that the Government is stagnating the economic potential of the entire nation, without Government interference in the economy, citizens would pursue their own interest and the economy would self-regulate. However Adam Smith is not against all government involvement. He theorized that the Government should defend the nation from invasions, and also provide necessary public services such as roads, public schooling and even law enforcement.
3) John Meynard Keynes is often though of as the opponent of the Adam Smith regime. He fancied the idea of necessary Government Regulation. In John Meynard Keynes' book "The General Theory of Employment, Interest & Money". He addresses very specific issues that can not be solved with Free Market Capitalism. The issues that he states in his writings are constant problems with Capitalism such as Recession, Depression, Poverty, Unemployment, and high business failures. He viewed these issues, as a lack of demand in the entire economy. He wrote that the Government is the largest consumer, and thus, can provide a boost, of sorts to the economic system and as a result lower taxes. This places more money into the pocket of the average consumer and therefore the economy is supreme.
PERIOD.5
ReplyDelete1. SMITH BELIEVED THAT FREE ENTERPRISE WITHOUT INTERVENTION AND CONTROL BY THE GOVERNMENT A STRONGER ECONOMY COULD BE BUILT AND MAINTAINED.
2. KEYNES BELIEVED THAT THE GOVERNMENT SHOULD PLAY AN IMPORTANT ROLE IN THE ECONOMY.
Adam Smith believed that the government shouldn't intervene with the economy and only in protection and handling outside affairs.
ReplyDelete3) keynes was triying to solve in his writing by being recession & depression & all of the negative problems that go along with it including business failures high unemployment & poverty in general. he solve it By spending on various projects & hiring people itself, government can create more income & therfore more spending which leads to more growth in the overall economy.
ReplyDelete2) adam smith was adressing in wealth that the self-interest of individual businesses could successfully drive the economy, otherwise knows as the invisible hand. He argued that economic activity was being stifled by the monarchs who were holding back the productive potential of independent entrepreneurs & businesses.
period 5
smith belived that self interest competition and the invisible hand would create a self-regulatin economy without the intervention of the government.question 1
ReplyDelete5th Period is Mr. Pierce's favorite class.
ReplyDeleteKeynes was all for having government step in to manage the economy in ways that he believed would benefit the economy and getting it "back on track" by stimulating aggregate demand and having the ability to fluctuate taxes.
Smith believed in the ever so grand, laissez faire, proclaiming that government keep their involvement in the economy to a limit. He believed that the economy would be able to function on their own if individuals were in pursuit of their own self interest.
Leah Faamafi
question 2 addressing the problem of the monarchies. At the time, during the mid 1700s, monarchies dominated all economic activity. Adam Smith believed that the self-interest of individual businesses could successfully drive the economy, otherwise knows as the invisible hand. He argued that economic activity was being stifled by the monarchs who were holding back the productive potential of independent entrepreneurs & businesses.
ReplyDeleteManuel Barraza (Period 5)
ReplyDelete1)Adam Smith opposed any government involvment in the economy. Adam Smith supported the Laissez Faire. While Keynes thought that the government can play a good role supporting the economy.
6)Keynes believed that a self regulating in market economies wouldn't be stable. He believed that they needed the government's involvment to keep it on the right track.
Breanna Hernandez Period 6
ReplyDelete1) Adam Smith hated any & all government involvement. Give evidence as to the truth or fiction of this statement.
Adam Smith was againist any and all goverment involvement, he believed in laissez faire which allows things that their own course without goverment intervention.
6) What do you think Keynes thought about the self-regulating potential of market economies?
I believe Keynes thought that the nation needed the suport and involvement of the goverment and without it they would be lost.
5)By saying this he wanted to say to the people that when the government had to use their money to bail out the banks in 2009 it had shown that that government had a big role in the market market. These were great ideal mind that John Maynard Keynes market structure was such a good thing.
ReplyDelete1)Adam smith had liked a government but didn't like how a big government would involve themselves in peoples lives but he did like it when there was a small government that would help in the time of need like invasion.
PERIOD 6
ESTEBAN CANALES
Isaac Lengel Period 6
ReplyDelete2) the Problem/Issue Smith was addressing was that the government must be strong and self-regulating.
6)Keynes believed that a self regulating in market economies wouldn't be stable. He believed that they needed the government's involvment to keep it on the right track
3. Keynes was trying to help the economy by more government involvement because he believed that government should help out with business failures, inflation and recession. Believed government involvement would help economy and it would put more money in people’s hands.
ReplyDelete5. George W. Bush believed government should’ve gotten involved with economy cause it would help bail out banks during the great depression. In a great depression the government needs to get involved to help raise the economy, and help out the banks because they have a lot of involvement in U.S. economy.
1) Adam Smith didn't hate all government involvement he just wanted a small government that would protect the people if or when another country invaded. Also to protect the civil rights of the people.
ReplyDelete2) Keynes believed that the government should be involve because he believed that the government could of put the economy back on track.
- Edwin Villeda p. 6
Edwin- you got right to the point. You supported your statement very well & you did it conscisely & very clearly. Nice work S. Pierce
Delete3. What problem was Keynes trying to solve with his writings?
ReplyDeleteHe saw that free enterprise had huge problems like business failures, high unemployment, and poverty. With the government involved, these flaws could be eliminated by the government doing the supervising and providing for those rough areas (unemployment, etc.)
6. What do you think Keynes thought about the self-regulating potential of market economies?
John Maynard Keynes believed that the free enterprise economy idea of Adam Smith had some huge flaws in it. Smith said that the economy should have zero government involvement and that it would progress on the sole power of self-interest and competition. In all, this means that the economy was in the hands of the will power of the people. What Keynes saw was what if people didn’t contribute? What would be of the government then? He thought that Smith’s idea of a self-regulating economy would fail and that eventually, the government would have to come in and help.
Nancy Laiton
Period 6
Nancy, you made some solid points. I don't think Smith said that government shoudl zero role. I don't think Keynes meant that everything would always work perfectly if we just allowed government intervention. There will always be issues to deal with. You lose me at the very end of your comment. Please clarify "what if people didn't contribute" ??????
DeleteIssac, I think your #6 is right on. The Great Depression proved Keynes right. In # 2 I don't think Smith really emphasized strong government. He cetainly believed that government could be too domineering. What was it that he specifically thought government should do? Get back to me S. Pierce
ReplyDeleteNancy Your #3 is right on. I would have liked to know what you think about the specific remedies government could use to eliminate the flaws. In #6, not sure that Smith believed there should be zero government involvement. Please reread that part & respond back. thanks Mr. Pierce
ReplyDeleteFrank Ramos period 6:
ReplyDelete1) The following statement is false about Adam Smith HATING Government involvement. Smith only suggested but believed "free enterprise without intervention & control by the government would create a stronger, more lucrative economy that could be built & maintained."
Frank Ramos Period 6:
ReplyDelete6) I think Keynes just wanted to make sure that his point came across about a self regulating economy wouldn't bring stability. But with the Governments aid and intervention, he believed it would help keep everything in check.