Sentences are, simply constructed to translate thought into words. The nature of how a writer compose their sentences are predicated by the text’s rhetorical situation. The purpose for this essay is to examining the totality of rhetorical situations upon two sentences from separate texts to critically analyse how the author employed techniques in order to connect with their audience, as well as parsing the cultural context of the authors of two separate sentences. I have chosen two sentences from a collection of academically contentious letters, exchanged between Friedrich von Hayek and John Maynard Keynes, revolving around the contestability of economic policy. Both sentences are a part of the conclusive arguments and this subsequently sheds light on stylistic differences of both author’s.
Sentence ONE
‘They will be “martyrs by mistake” and, in their martyrdom, will be injuring others as well as themselves.’
- Keynes 1932
Sentence TWO
‘If the Government wish to help revival, the right way for them to proceed is, not expenditure, but to abolish those restrictions on trade and the free movement of capital (including restrictions on new issues) which are at present impeding even the beginning of recovery.’
- Hayek 1932
The topic of debate between Keynes and Hayek, is based on the effectiveness of capital investment and what policies the Government should adopt.
I find it suitable to discern the credibility of the writers, which is imperative to examine the influence of their words. Both gentlemen, at the time, were considered to be leading economic theorist. At the time both Hayek, and Keynes held prominent positions at leading economic institutions, and due to their economic prowess, both men were the most cited economists in ...
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...; Hayek also provides an outline of how to fulfil the role.
My planning for this assignment was a slightly stressful. The stress was induced when trying to choose what sentences to use. I had difficultly choosing a sentence that appealed culturally to me. In the end I selected sentences from economic theorist. The topic of the texts was based on the causes of the Great Depression and they’re discussing the best approach to move forward. Keynesian Economics and Neoclassical Economics have been vowing for orthodoxy through the twentieth century. In recent decades the two schools of thought, in many places create a synthesis, resulting the economic policies that are applied on the Australian economy. The economy is an integral part of our everyday living, so I find it logical to analyse sentences from two people have irrevocably shaped the world to what it is now.
...h he had favored central banking for most of his life, in 1970 he had begun advocating denationalizing money. In his opinion private enterprise’s that issued distinct currencies, he argued, would have an incentive to maintain their currency’s purchasing power. Which would then mean that customers could choose among competing currencies. Now, whether they would revert to a gold standard or not was a question that Hayek was too much of a believer in spontaneous order to predict. With the collapse of communism in Eastern Europe at the time, some economic consultants had considered Hayek’s currency system as a replacement for fixed-rate currencies.
When describing a martyr or martyrdom one often thinks the terms within the ecclesiastical way in which a person dies for his or her religious cause often against his or her own desire. We must therefore look to the concept of dying for ones belief or cause by broaden...
Hayek, F.A. Individualism and Economic Order. The University of Chicago Press. Chicago and London. 1948.
John Maynard Keynes does not believe that an economy can self-adjust, he believes that government intervention is necessary for an economy to recover after a downturn. The policy prescriptions are for the economy to be stimulated through government spending, lower interest rates or a reduction in taxes. Keynes was not very popular when he first proposed his ideas and for some time afterwards his ideas were not accepted. Keynes published a book on how to deal with economic downturns, specifically a depression. One policy prescription that began to make the Keynesian policy popular was government spending. During the Great Depression people were unable to spend the money that was needed for the economy to adjust automatically as believed by classical
Two key thinkers of the time were Milton Friedman and Friedrich von Hayek who saw ‘the free market’ as central to the success of Thatcherism and believed that government should concentrate on economic issues, thus allowing ‘market forces’ to shape society.
Public policy is enormously impacted by the importance of economic beliefs about the political world. Throughout history, there have been two prominent models of economic policy; Keynesianism and Neoliberalism. The increase of authoritarianism intermingled with the rise of communism essentially started World War 2. After this, the government instituted Keynesianism until the late 1970’s. After the stagflation of the late 1970’s, the political and economic movement of Neoliberalism began.
Keynes and Hayek each approach the economy from a different perspective. In Keynes’ estimation, it is all about the flow of money. The economy is improving when money is moving, and thus, stability is achieved as much as is possible. Consequently, spending, and more specifically government spending, is the key to unlock the door blocking economic growth. By contrast, Hayek contends that money is not everything. What the money is used for, whether it be saved, invested, loaned, or spent, also plays an important role in the progression of the economy. Growth comes from saving and investing not consumption and spending. The stability of the economy, according to Hayek, is brought about by the forces of supply and demand.
John Maynard Keynes, British economist, journalist, was born on June 5th 1883, in Cambridge, England. His father, Dr. John Neville Keynes, was an economist and a philosopher. Keynes attended Eton and then Cambridge University. At first he studied Mathematics but then turned his attention to Economics when he was offered the job at the British treasurer after the First World War when the British economy was at pressure. A man who gained a modicum amount of wealth during 1919 to 1938, married to Lydia Lopokova in 1926 and passed away in April 21st, 1946. Keynes believed that price level has to be stabled in order to have a stabled economy, and that is only possible if interest rates go down when prices rise. He also believed that the market forces alone will not deliver full employment but boosting government spending (main force of the economy in Keynes theory) will aim in his theory full employment or close to that. He believes by Governments intervening and spending will finally stop recession, unemployment and most importantly depression. For spending will increase the aggregate demand of the economy.
The clash between Hayek and Keynes has defined modern economics. On one hand we have Keynes standpoint, which was if investment exceeded savings, there would be inflation, but if savings exceeded inflation, a recession would be present. On the other hand Hayek presented ideas of less government initiative and to have people make their choices on economic decisions more freely. Hayek argument on Keynes government spending was that if the economy should be more concerned with consuming or investing.
Papola, John. “Fight of the Century: Keynes vs. Hayek Round Two” – YouTube. YouTube –
The theory of economics does not furnish a body of settled conclusions immediately applicable to policy. It is a method rather than a doctrine, an apparatus of the mind, a technique for thinking, which helps the possessor to draw correct conclusions. The ideas of economists and politicians, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influences, are usually the slaves of some defunct economist." (John Maynard Keynes, the General Theory of Employment, Interest and Money p 383)
Keynesian economists, similar to Classical economists, also believe that the economy is made up of consumer spending, government spending, and business investments. However, the Keynesian Theory says government spending can improve economic growth in the absence of consumer spending and business investment (Differences). According to the Keynesian theory, wages and prices are not flexible. A static price will give a horizontal aggregate supply curve in the short run (Classical and Keynesian Economics).
The disparities between the two views of the economy lead to very different policies that have produced contradictory results. The Keynesian theory presents the rational of structuralism as the basis of economic decisions and provides support for government involvement to maintain high levels of employment. The argument runs that people make decisions based on their environments and when investment falls due to structural change, the economy suffers from a recession. The government must act against this movement and increase the level of employment by fiscal injections and training of the labour force. In fact, the government should itself increase hiring in crown corporations. In contrast the Neoliberal theory attributes the self-interest of individuals as the determinant of the level of employment.
Bitzer, Lloyd F. “The Rhetorical Situation.” Philosophy & Rhetoric 1.1 (Jan. 1968): 1-14. PDF. 19 Aug. 2013.
My research of Classical Economics and Keynesian Economics has given me the opportunity to form an opinion on this greatly debated topic in economics. After researching this topic in great lengths, I have determined the Keynesian Economics far exceeds greatness for America compared to that of Classical Economics. I will begin my paper by first addressing my understanding of both economic theories, I will then compare and contrast both theories, and end my paper with my opinions on why I believe Keynesian Economics is what is best for America.