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Keynesian Economics

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  Tags: politics   society   stocks   business   finance   bubble   economic cycle   keynes   keynesian economics   recession

Background


With the recent US economic events, Keynesian economic theory has been hotly debated. The US fiat dollar is based on Keynesian theories, which differ significantly from the Austrian school of economics. Could the collapsing US economy be caused by a flawed Keynesian theory? Do you support Keynesian economics?

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Arguments For

Yes, Keynesian economics is sound

As long as people have trust and faith in the currency, it does not need to be backed by gold. The fiat monetary system works as long as everyone believes that it has value, therefore, the US government has guaranteed the currency and making it a law that US dollars are "legal tender" for the purchase and transaction of goods. Furthermore, the law does not allow alternative currency which would devalue the dollar.

Figureheads In Support

Alan Greenspan
Ben Bernanke

Videos in Support


Organizations In Support

The US Government

Arguments Against

No, Keynesian economics is flawed

It doesn't make sense to trust a currency not backed by anything.

Being backed by gold (or some other tangible commodity that cannot be whimsically created) is necessary for property rights. When money is magically produced either by government printing money (also knows as inflation, also known as the Federal Reserve lowering interest rates), or by other counterfeit means, the overall pool of money increases and the value of your money decreases - which is theft. If you wish to own and keep your money (property rights), the money must be backed by something real.

Figureheads Against

Peter Schiff
Ron Paul

Videos Against


Organizations Against

The CATO Institute

Sources

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User Comments & Opinion

 
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0 Voted Yes

2 Voted No

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I think the recent downturn of economic events clearly shows the flaws in Keynesian economics and we're definitely in for Obama-style hyperinflation. - jennyhooah (twitter) vote up image vote down image 0
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The Keynesian economics is very embedded in Europe (and, above all, in Italy): which the economy more flexible and resistent to up-down of the historical event? The U.S.A. or an european nation? - alepuzio (twitter) vote up image vote down image 0
 
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