Views Of Marx And Keynes Essay Research — страница 2

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he believed that government action was essential. He said the government should monitor the economy, and introduce policies that run counter to the trade cycle. He fundamentally believed that the government?s role was to fine-tune the economy. Marx believed there was no role for the government. He said that capitalist governments do not serve the interests of the whole population. Marx wanted private property to be eliminated and for a socialist government to come into existence. In the transformation from a capitalist government to a socialist one, Marx recognized that there would be government ownership of the means of production early on. But as the focus went on social commitment, rather than the idea of self-importance, there would be less need for central control. He

believed that the government would ?whither away? as communism-replaced socialism. Marx?s ideal community would then emerge: a community of self-governing human beings living in harmony. Keynes believed that adding to government functions was necessary to avoid the eradication of the economic system, therefore allowing the individual to display initiative and flourish. Keynes? focus lay with groups of individuals in the economy. He focused on a way to achieve full employment of labor. He said the level of activity in the economy was crucial to the amount of employment. Keynes believed that private investors played a decisive role by their decisions to add or to postpone investment. He said this was the reason why the market economy was unstable. Keynes viewed private investment

as being volatile. He was aware that investor?s plans could change quickly. He saw aggregate demand as being a reflection of investor?s decisions. He believed that the right of individuals to work could be protected if government spent money to maintain aggregate demand whenever private investment was low. Marx believed that the role of the individual in society was of fundamental importance. He presented a communist society as being a paradise on earth where individuals can break free of restrictions imposed by the division of labor. He ultimately saw it as being freedom for the individual. Marx believed that individuals were trapped within social classes. He saw the workers and the capitalists being opposed to each other in the production process. He firmly believed that their

differences and divisions could not be reconciled. Marx believed that suffering and conflict took place because the ruling class had power over the rest of society. The ruling class power depended on private productive property and if there were communism, the conflict would subside because private property would end. Marx believed that communism represented individual freedom and equality and under communism, human conflict would cease. Keynes? views that government action is essential to produce full employment have been applied in Australia recently with the government?s job network, which has tried to create jobs for the unemployed. Keynes believed that the government should have a key role in the economy. The Australian government is improving its economic performance and is

creating a new tax system through the GST. Marx and Keynes views on ownership, resource allocation, income distribution, and their views on the role of individuals and government in the economy have gained them worldwide acclaim from capitalists and communists. Their views have been disputed and praised by economists for over 180 years. Marx?s ?Communist Manifesto?, about the need for workers to overthrow their rulers, resulted in him not being able to enter Europe again. Keynes, however, was praised by capitalists and was allowed to preach his economic theories throughout the world. Both Marx and Keynes were essential to developing what today is our economic system.