Question
Hello I need a response to this post please, I need just to answer this post to a classmate, so they wrote the below and
Hello I need a response to this post please, I need just to answer this post to a classmate, so they wrote the below and I need to respond with something.
Classical and Keynesian Economics Classical economists believe that the economy tends towards a level of output associated with full employment (Amacher & Pate, 2019). Members of this group believe that government intervention will only negatively disrupt the economy, and involvement should be a bare minimum. Classical economists also believe in the long-run AS curve, which they consider practically vertical. The group's laissez-faire attitude results from their belief that automatic market forces will create real output towards the full employment level (Amacher & Pate, 2019). Contrastly, Keynesian economists believe that government involvement is needed to speed up achieving full employment. Keynesians do not think that performance will get better by exercising a "let it be" attitude. This group also believes that the benefits of government intervention will exceed the cost (Apacher & Pate, 2019). Additionally, Keynesians pivot from the idea that the AS curve is vertical and used data from the Great Depression to show it was flat and would need help from the government to correct itself. Classical or Keynesian? Which Do I Prefer? I prefer the Keynesian economic belief system, primarily because of how strong a case they make when discussing the Great Depression. It is clear from the data during that time that a laidback, classical stance on the matter was not going to expedite the process of coming out of that financial crisis. Government intervention was obviously needed to kickstart the economy and help get the population back on their feet. Examples of Keynesian views are apparent today with the stimulus packages and child tax credits that people currently receive to help keep the economy afloat during the COVID pandemic. In my opinion, the country would be worst off right now if the government wasn't involved in assisting in stimulating the economy. What Would I Do for the Current U.S. Economy? I would do something similar to what the U.S. government is currently doing for the current U.S. economy, but I would decrease its involvement slightly. Being that I am a GM of a large business, I personally feel the effects of associates who took leave and made more money on unemployment than if they were actually working. How does this promote people to return to work and not just wait until they exhaust their benefits? Some will say that these people didn't have a job to return to until closures were lifted. I completely understand that, but shouldn't they be getting paid an amount closer to what they originally earned on the job? Additionally, something I would research further is academic loan forgiveness or at least a partial pardon. It is very tough for these large loans to get paid off on time in these times we're experiencing as a country. One might argue that they were tough to pay off during a healthy, prosperous economy. I think even lower interest rates, longer terms, and reduced balances should all be priorities in assisting the future leaders of this country.
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