Hayek vs. Keynes

Hayek and Keynes represent two contrasting economic philosophies. Friedrich Hayek advocated for free markets and believed that individuals, through their choices, would best drive economic growth. He argued against government intervention, fearing it could lead to inefficiencies and loss of freedoms. John Maynard Keynes, on the other hand, emphasized the importance of government action, particularly during economic downturns. He believed that active fiscal policy—like increased spending to stimulate demand—was essential to revive economies and reduce unemployment. Essentially, Hayek favored minimal government involvement, while Keynes championed intervention to ensure stability and growth.