I do not think it is an exaggeration to say history is largely a history of inflation, usually inflations engineered by governments for the gain of governments.” F.A Hayek. “The government solution to a problem is usually as bad as the problem and very often makes the problem worse.” M. Friedman “Every government intervention [in the marketplace] creates unintended consequences, which lead to calls for further government interventions.” Ludwig von Mises a) The above quotes criticizes government interventionism to the economy. But, Keynesians believe that there is no way to stabilize the markets other than through government intervention (spending, taxes, planning and regulation). By giving references to the end of the Keynesian Era, explain why government interventionism has lost its popularity after the 1970s.
“I do not think it is an exaggeration to say history is largely a history of inflation, usually
inflations engineered by governments for the gain of governments.” F.A Hayek.
“The government solution to a problem is usually as bad as the problem and very often
makes the problem worse.” M. Friedman
“Every government intervention [in the marketplace] creates unintended consequences,
which lead to calls for further government interventions.” Ludwig von Mises
a) The above quotes criticizes government interventionism to the economy. But,
Keynesians believe that there is no way to stabilize the markets other than through
government intervention (spending, taxes, planning and regulation). By giving
references to the end of the Keynesian Era, explain why government interventionism
has lost its popularity after the 1970s.
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