Comparing and Contrasting Economic Ideas Essay

Introduction As somebody leaders in modern- twenty-four hours frugal thought and attitude, sparing experts Milton Friedman and John Maynard Keynes was hailed and criticized by many opposite individuals and brasss because of their function to global delivery attitudes as well as because of the roughlytimes genuinely radical ways that the twain required of sparing leaders to relapse to so that they can follow the economic model that either Friedman and Keynes designed. twain be right and wrong when it comes to understanding economy and providing a issue which can be used to unlock the mysteries of the changing economic dilemma that the human experiences which requires the input of economists. And during their time, Friedman and Keynes enjoyed the god-like loft from which they stood, one at a time, when the world was bowing to the economic approximations that they made.Similarities Friedman and Keynes economic thoughts meet in the middle annul Friedmans and Keynes thoughts and focus on economics have inherent differences, several(prenominal) observers believe that the two economic minds espoused by Friedman and Keynes also have some similarities. For one, the two economists and their stems atomic number 18 in agreement when it comes to the stable growth roam of money supply and its role in fluctuation and employment1.Also, the two were inherently economist in inclination they stand on similar movement even if it means digging and building that ground using different shovels and different strokes. Second, the economic ideas of the two individuals share the similar characterisitcs of being pop and widely used and regarded before the ensuing change in semipolitical landscape made the idea of obsolete and useless for Keynes and his economic idea about the role of the state in economic leadership, the flowering of his idea came after the world, particularly the US, felt the squeeze to the economy after the two world wars and the detail o f the extensive Depression, his idea ultimately subsiding by the time the world came proximate and closer to the 80s.For Friedman, his economic idea got its turn after it proved having the solution to the problem the Keynes model cannot answer, and after enjoying his importation in the spotlight for some years, the global crisis that engulfed the world pushed Friedmans ideas closer and closer to the trash bin. Friedman and Keynes and their ideas share the similar pace when it comes to public acceptance, as well as the kindred characteristic that their ideas each are pets of US presidents former US president Richard Nixon was a Keynesian while some early(a) former US president, Ronal Reagan implemented a Friedman approach in economics2. some other similarity in the economic idea of Friedman and Keynes is that their ideas allowed for the identification of an entity or institution or idea that was the reason for the failure of the economy. Take for example the Great Depression, for those adhering to the Keynesian whimsey in economics, they are inclined to believe that in that location is someone or something at fault why such occurrence happened, and that is the idea of free market. Friedman think ofing will also lead the individual towards the same belief of having someone or something at fault, and that is the Federal Reserve, so far as Friedman economic thinking is concerned.Another similarity shared out by Keynes and Friedman and their attack and pattern in developing economic thought and assuring the audience needed for the establishment of the popularity and acceptance of their particular economic thought is the port by which their economic thoughts and ideas were built and spread or so those who will either criticize or embrace it.Wood (1991) explained, The close to surprising aspect of Friedmans achievements is that he has not to a great extent earned the gratitude of the profession. To a large degree this is due to the sharply critical fo rm in which he has presented his ideas.3In his attacks on the positions of other he has at times t exterminateed to depart from the more careful and unemotional way in which he typically presents his own results. This has assured him of a wide audience, because it is often easier to attract adherents to a revolution in thinking even a counter-revolution than to a less dramatic evolution of a hypothesis. This is a characteristic which Friedman shares with Keynes and explains why both have been at the same time extremely controversial and highly successful in the training of economic thought.Economists in a head-on collision Despite the similarities tack together in Friedman and Keynes and their thoughts and the pacing and social acceptance lifespan of their ideas, Friedman and Keynes and their ideas in economies are more accepted, criticized and reviewed because of how the two ideas find contrasting points against the other. They and their ideas have significant differences th at they are described sometimes as the great polarizers of the economy and the economic belief and attitude.For Friedman, Keynes was incorrect about the idea of the state and its active role in dictating the economy. For Friedman, the more suitable solution is for the state to k at one time that its role in the economy is focused on ensuring the growth of money supply. Friedman stressed the enormousness of monetary policy versus the idea of Keynes and the role of state spending. Friedman also challenged the manner by which Keynes explained the behavior of the consumer especially during the cases of inflation and the ensuing unemployment4.The Keynes-Friedman Showdown date it is understandable how there will be purely separate groups that concur the thoughts of Keynes and the economic thinking of Friedman, there are instances that the two modern day economic thinkers figure in colossal showdowns (which is not of their doing, of course, entirely the doing of other people and insti tutions particularly award giving bodies that set out to diagnose who is the best between the two). An example of these instances is the during the time globally popular and highly respected weekly glossy magazine TIME undertook the task of engagement the recipient of the Economist of the Century honor to wrap up the end of the twentieth century5.Skousen (2001) wrote about how the members of the selecting group were torn between Friedman and Keynes, and how Friedman ultimately bested Keynes condescension the position that some TIME magazine staff, including editor in point Norman Pearlstine, believed that the award should go to Keynes. Pearlstine believed that the manner by which Keynes articulated the brilliance of free markets as well as the significance of the undue authorities intervention that will resort to the creation of danger in the economic landscape6 is an important modern day economic idea that will make not unspoiled one country but the world, especially now t hat the world is experiencing global trade and economics.Cambridge University in 1970, during the time Friedman faced a highly partisan, pro Keynes crowd who rooted for their favorite Nicholas Kaldor which Friedman soundly thwarted during the tump over7. Some would say that the surprising Friedman win in that particular tump over (which silenced the murmuring crowd of infidels) was due largely because of the absence of Keynes himself, but it may also point to the fact that Friedman and his economic ideals holds true in some aspects.Conclusion Many scholars, critics, new economists, political analysts and historians until now continually debate about the similarities and differences of Keynes and Friedman and their economic ideas. More importantly, they debated about how each economist and each idea they gave to the world helped in shaping world economy as it is today. Some say that Milton was unlike Friedman, while some think they are the same. Some believe that Friedman was bet ter than Keynes, while others feel otherwise. Others go to the extreme, considering that the two lived in an interconnected life, that one completes the other, as DeLong believes that Friedman was not a competitor to Keynes, but more of the man that completed Keynes8.The issues and points arising in the debate focused on the person and their ideas bring about immense complexness that the end is always hard to see, predict and achieve. provided for the differences of Friedman and Keynes, it is no distrust that both economist contributed immensely in the field of economics, and because of that, they were showered not just with official honors but with very flattering commentaries by critics and observers. Mark Blaug was quoted by Skousen in his book as attributing to Friedman and his great ability for debating and fighting for his position in economic ideologies9 that resulted to his earning the respect of even his most critical and antecedently unimpressed adversaries.Skousen (2001 ) believes that Friedman is the most famous economist alive, but he was quickly to counter his proposition by reminding the readers that Friedman was not a giant at first in the circle of economic thinkers, owing largely to the fact that Friedman and his economic ideas (i.e. his monetarism beliefs) were heavily criticized early in his career as an economic thinker. 10 Truly, both Keynes and Friedman created such economic ideals that went to the extent that it became antagonistic with each other. But professionals knew that underneath it all, the more important thing to consider is the fact that the differences and similarities piece in Keynes and Friedmans works gave the world what it can used to reign over changing economic difficulties.Works CitedDeLong, J Bradford. Friedman Completed Keynes. Project Syndicate. 2006. 23 May 2008 .Heuser, Uwe Jean. The Underrated Power of Economists. Indymedia.org.uk. 28 June 2007. 23 May 2008 .Macesich, George. World miserliness at the Crossro ads. Greenwood make Group, Incorporated, November 1997.Skousen, Mark. The Making of Modern economic science The Lives and Ideas of the Great Thinkers. Sharpe, Me., Inc., manifest 2001.Wood, John Cunningham. Milton Friedman Critical Assessments Vol. 14. Taylor & Francis, Inc., lofty 1990.1 Macesich, George. World Economy at the Crossroads. Greenwood Publishing Group, Incorporated, November 1997. p. 12.2 Heuser, Uwe Jean. The Underrated Power of Economists. Indymedia.org.uk. 28 June 2007. 23 May 2008 .3 Wood, John Cunningham. Milton Friedman Critical Assessments Vol. 14. Taylor & Francis, Inc., August 1990. p. 465.4 Heuser, Uwe Jean. The Underrated Power of Economists. Indymedia.org.uk. 28 June 2007. 23 May 2008 .5 Skousen, Mark. The Making of Modern Economics The Lives and Ideas of the Great Thinkers. Sharpe, Me., Inc., March 2001. pg 379.6 Ibid.7 Skousen. pg 380.8 DeLong, J Bradford. Friedman Completed Keynes. Project Syndicate. 2006. 23 May 2008 .9 Skousen, p. 38010 Ibid.