which best summarizes the philosophical difference between economists john maynard keynes and adam smith? keynes said government was the key to solving economic issues, while smith believed government should take a hands-off approach. smith said government was the key to solving economic issues, while keynes believed government should take a hands-off approach. smith believed in an invisible hand with which government pushes the economy, while keynes did not agree with this idea. keynes believed in an invisible hand with which consumers push the economy, while smith did not agree with this idea.
Which best summarizes the philosophical difference between economists John Maynard Keynes and Adam Smith?
Answer:
The key philosophical difference between economists John Maynard Keynes and Adam Smith lies in their views on government intervention in the economy. Keynes believed that the government should play an active role in solving economic issues. He advocated for government intervention through policies like fiscal stimulus during economic downturns to boost demand and stabilize the economy. On the other hand, Adam Smith, considered the father of modern economics, believed in a laissez-faire approach where the government should have minimal interference in the economy. Smith famously used the concept of the “invisible hand” to explain how individuals pursuing their self-interest could lead to overall economic prosperity, without the need for government intervention. So, to summarize, Keynes emphasized the role of government in economic matters, while Smith advocated for a more hands-off approach with limited government involvement.