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Thread: Communism and Capitalism
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[quote=ELCABRON ,13985]Oh, Conny, your major seems to be a long time ago - but on your pic you are still sooo young and cute;-)Keynes Theory criticized the classical theory - remember Adam Smith and the unvisible hand? The market regulates itself, no political regulations needed and so on....until the black friday and the following crisis, where people wondered why the market did not regulate itself.John Maynard Keynes said as a criticism of the classical sentence in the long run the market would regulate itself: "In the long run we are dead", we cant wait until the market corrections happen somewhere in the future- quite funny!So, for example the US government started to invest heavily so that the economy revitalized - which is against the classical theory which denies any governmental interference. But it worked.But the later political interpretation of Keynesianism in some European countries, where they interfered also in normal situations hoping that the cycle of up and down would balance the governmental investitution debts in bad times by raising tax surplus in good times - did not work and lead to heavy budget deficits and even worse crisis.....there was a new idea of developing the classical theory with some necessary extend of governmental interference in certain situations, but avoiding the heavy interference of the last interpretation of Keynes, the Neo-Classical Theory is what most countries use in their economy politics today.And this is worlds apart from the ruinous planned economy of communism of the past. There were no incentives to do more or to do it more efficient, so that if the moderator (or "dictator") does a mistake in his year plans, the whole economy goes down. The moderator says what everybody has to do.The huge leap into starvation was such an example - 50 to 80 millions dead! Sorry for this long, boring monologue![/quote]
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