What Form of Economics Should the USA Use?

Posted by: Seido

Over the nearly two and a half centuries of America's existence, many different forms of economics have been suggested. Two of the most prominent of these were the Austrian school of economics, and the Keynesian school of economics. What form of economics do you believe the US should use? Please explain why.

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14 Total Votes
1

The Keynesian School of Economics

The Keynesian School of economics was proposed in the 20th century by Keynes. This form of economics involves some government control over the economy in the form of subsidies, regulations, and governmental spending. The idea of Keynesian economics ... is, particularly during a downturn of the economy, the government should spend money to boost aggregate demand, and creating more jobs to help the economy. It does this by using high taxes to subsidize companies within the private sector, and then to spend its own money on public sector jobs. The government then also uses different forms of regulation to help the keep customers safe, and to help the economy grow. Keynesian economics is often confused with the idea of full governmental control over the economy, otherwise known as Socialism or Communism. The key difference between Keynesian Economics and Socialism/Communism is that instead of taking full control over the private sector, as is done in Socialism and Communism, the government spends money and creates legislation to regulate the private sector. While governmental influence still plays a part in the economy, privately owned businesses still exist and play an enormous role in shaping the economy. This form of economics is supported primarily by liberals, and in particular the Democratic party of the United States of America   more
5 votes
1 comment
2

A Mixed Economy (Please Explain)

Mixed economies incorporate parts of a variety of economic theories to create their own economic system. Many governments in the modern world use these mixed economies. The United States, for one, uses a mixture of Austrian and Keynesian economics t... hat allows for subsidies, regulation, and a relatively free market. Countries across the world use these mixtures in order to form economies that best fit them, their people, their cultures, and their beliefs for what will allow the economy to grow the fastest   more
4 votes
1 comment
3

The Austrian School of Economics

The Austrian School of Economics was proposed in multiple different forms throughout America's history by such economics as Adam Smith, H.A. Hayek, and Milton Friedman. This form of economics involves no governmental control over the economy. It is ... uses a completely free market, low taxes, little or no regulation over the private sector, and little governmental spending. Supporters of this form of economics argue that any governmental interference on the economy creates distortions in the free market and bubbles in the economy that will inevitably burst, resulting in greater loss in the economy than what was gained. This form of economics is supported primarily be conservatives, and in particular, Republicans and Libertarians within the United States of America   more
3 votes
1 comment
4

Other (Please Explain)

While the United States usually teeters between the Austrian School of Economics and the Keynesian School of Economics, there are many other forms of economies that have been used. Such forms of economics include Communism and Socialism.
2 votes
2 comments
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(Maximum 900 words)
saxman says2014-06-19T23:01:16.9978392-05:00
CAPITALISM
Seido says2014-06-19T23:06:46.4711826-05:00
Saxman, capitalism is only a basic economic theory. There are many different forms of it, including both Austrian and Keynesian economics.
debate_power says2014-07-07T15:32:32.3606884-05:00
Might have to use socialism if the economic and social problems resulting from capitalism are not resolved.

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