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Economists Keynes, Hayek, and Friedman

Lectures in History

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What Is the Solution to the Great Depression?

Kanes's solution of government deficit spending is a solution that worked in the great depression because of deflation. But he called his great work the general theory of employment interest in money, as if this were the solution in in most economic circumstances. And it really wasn't. It was the solution in the great depress after it got going, but it wasn't a general theory. It was a specific theory. Kanes probably would have emphasized government spending more, greater government role in the society. But he was no socialist, as hyak was no socialist. Hyak is more an anti socialist, it seems to me, whereas kaines is more how do you make capitalism work?

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