Tuesday, October 7, 2008

The Marx-Hayek message

It is not new to compare between any two extreme economist but yet it need to be seriously think through.

Meghnad Desai writes in Financial Express “They were schooled in Hayek and as libertarians, they believe that in a free market there should be no handouts and no free lunches”….. Hayek took the stark view that cycles were natural to capitalism and arose from a tendency to resort to cheap money which, in turn, led to mal-investments and then a crisis which had to 'detox' the system . He was against any rescue and any premature reflation. In the 1930s, no one took any notice of Hayek and Keynes with his much softer approach to capitalism won the day. But Keynesian demand management ran into its own crisis after 25 years of full employment—the Golden Age of Keynesianism lasted from 1945 to 1970.
But there is an anomaly saying that J M Keynes was approached “much softer way to capitalism”.

It may be the fact that in many parts of the world “What killed it was a classic Marxian 'falling rate of profit' crisis”. But it also true the neo classic Marxian killed far more amount of people.

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