Keynes vs. Hayek

“Economics is not an exact science.”   Ronald Reagan Economics is not only inexact, but economic theories depend upon assumptions about what people will do under certain sets of conditions. When people do not “behave” as assumed, economic theories break down. One thing you can say with reasonable certainty, however, is that when the government interferes in the pricing mechanisms of the free marketplace, problems are bound to follow. John Maynard Keynes (1883-1946) is indisputably the most influential economist of the…