Blog Journeys of a Lifelong Learner

I am preparing to take the Macroeconomics CLEP test.

Two figures that dominate the literature of economics are Adam Smith and John Maynard Keynes.

While this is an oversimplification, it is generally accurate to describe Smith as a proponent of free market economics and Keynes a proponent of governmental economic interventionism.

Keynes believed free markets incapable of self regulation and advocated a significant amount of governmental regulation. He viewed governmental causality as important for the effecting of appropriate levels of supply and demand throughout a society. The tragic results of rampant adoption of Keynesian philosophy can be seen in the present international economic challenges.

Most current economists hold to Keynesian thought. Keynes is heralded as an intellectual hero, but the exaltation of his ideas has resulted in widespread ignorance of an important alternative: the Austrian School.