HIST 121 Chapter Notes - Chapter 22: Procedural Justice, Spontaneous Order, Classical Liberalism
Document Summary
-- sometimes adam smith, karl marx and john keynes are taken as the three greatest western economists. -- he proposes a system of macroeconomics which intends to rescue capitalistic economy of the post-wwi world. -- his thought directly contributed to counteract the great depression, the new deal and other postwar state policies. -- marxists and laissez-faire liberals, especially the latter. -- laissez-faire economists only consider benefits, don"t count cost of the struggle for survival. Unlimited private money making is an effective incentive to maximum effort. -- he says, those principles, together with others, make unreal presumptions about real economic world. -- natural liberty, compact from natural rights, providence, enlightened self-interest, they are all not real. -- so keynes thinks there is also a limitation of governmental intervention. -- one important point is that he opposes to the say"s law, which thinks the aggregate production can necessarily create an equal aggregate demand, implying there will be no unemployment without governmental intervention.
