Friedrich Hayek was born on May 8, 1899 and passed away on March 23, 1992. Hayek served in World War I and due to the many factors that led to the war, which also led him to his career wanting to avoid those mistakes in the future. After World War I, he earned his doctorate from the University of Vienna in law and political science, where he also studied philosophy, psychology and economics. He is the founder of what is known as the Austrian Economics.
Austrian Economics is the increase in demand for production and labor so their prices rise, which leads to an increase in prices of expenditure goods. The start of the economic devastation starts when a war is announced or property was taken. After World War I, Hayek wanted to do what he could to avoid these things from happening again, so that is what brought him to study and teach Austrian Economics. The cycle began around the eighteenth century when banks had the ability to expand credit and their money supply starting with paper money and later extending to bank notes and deposits. This process has lead to a sudden boom in economics which has yet to be fully explained.
John Maynard Keynes was born on June 5, 1883 and later died on April 21, 1946. He was a British economist with ideas that have affected the theory of modern macroeconomics and government. Keynes was the president of the Cambridge Union Society and Cambridge University Liberal Club at Cambridge University. And in 1904 Keynes received his B.A in mathematics, a subject he was offered many scholarships in. His studies lead to what is known as Keynesian economics.
Keynesian economics is the view of spending using aggregate demand, or total spending in the economy during a recession. He feels that the loss taken during the Great Depression should have been backed by government spending, causing a reduction in the unemployment rates. His thought was that if there was an increase in spending that it would mean there would be less...