The Difference Between Classical Laissez Faire Economics And Keynesian Economics

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At first glance, it’s tempting to polarize the difference between Classical “laissez-faire” Economics and Keynesian Economics. My immediate thought is that Classical Economics is a conservative model, leave it up to the individual to do what they will and to shun socio-political engagement when it comes to wealth. On the other hand you have the more liberally oriented spend and engage in order to stimulate the economy model. The polarization happens because of the way politics have branded themselves - Republican or Democrat, small uninvolved government vs a government for the people which may seem a bit socialistic at times. But as you read more, you can really dig into the nuances of both economic theories and see how interwoven financial concepts are with politics, and humanity, particularly how it effects employment. Classical Economics is sometimes called “laissez-faire” or free-market. It sounds like a panacea of companies and individuals creating their own opportunities and building success from their own blood, sweat and tears. That if you’re driven and self-interested, you will be successful. This was probably true when our nation was smaller and less plugged-in and connected. Production of anything was driven on how useful it was and availability would increase the more it was used. Growth and success are linear in this model, and when competition is reasonable this model works. Business people as entrepreneurs provide but also have interest in the people who

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