Bringing in the Gunslinger: Nicholas Wapshott on Keynes vs. Hayek

The video discusses the contrasting economic theories of John Maynard Keynes and Friedrich Hayek, focusing on their responses to the Great Depression. Keynes emphasized government intervention to boost demand, while Hayek warned against inflation and advocated for free markets. Their academic rivalry, marked by intense debates, highlighted the divide between Keynesian and Hayekian economics. The video also reflects on the modern relevance of these theories, especially in light of recent social unrest, suggesting that neglecting government roles in economic stability can lead to societal issues.

What was Keynes primarily concerned about after the Great War?

• Rapid inflation

• Trade deficits

• Currency devaluation

• Unemployment

Why was Hayek brought to London by the London School of Economics?

• To counter Keynes' ideas

• To support Keynes' theories

• To teach at Cambridge

• To promote Austrian economics

How did Keynes and Hayek's debates affect their academic peers?

• They were encouraged to continue

• They were asked to moderate their language

• They were ignored

• They were praised for their politeness

What was a key reason for the stalemate in the debates between Keynes and Hayek?

• They were both uninterested

• They agreed on most points

• They were discussing different issues

• They were not allowed to publish their works

According to Keynes, what should the government do if the private sector cannot employ people?

• Employ people in the public sector

• Increase taxes

• Encourage foreign investment

• Reduce public spending

What did Keynes suggest about borrowing money during an economic crisis?

• It should be avoided at all costs

• It is acceptable if it helps maintain demand

• It should only be done by private entities

• It is unnecessary and risky

What was the potential consequence of not maintaining demand, according to Keynes?

• Higher inflation

• Societal collapse

• Increased savings

• Economic stability