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Hi, need to submit a 2250 words paper on the topic Conceptual Frame of Adam Smith and John Maynard Keynes to Competition.
Hi, need to submit a 2250 words paper on the topic Conceptual Frame of Adam Smith and John Maynard Keynes to Competition. Keynesian observes the role of entrepreneurship and innovation as the emphasis of economics. He emphasized the need for investment to achieve spiral economic growth. The England economist was considered “radical”. His view is what is referred to as “neoconservative”. This is because of his desire to have a free market in which it does not require the intervention of the government and the politicians. Economists view capitalisms positively like Adam Smith. Keynes argues that in order to improve the societies and empowerment, there is a need to promote the capitalist's elites due to their power and economic forces. Both economists observe that the political influence creates unnecessary and unfair fight which makes the employers stronger and weakens the workers (Cho, Mun, & World Scientific (Firm), 2013, 19).
Just like in Australia, competition is considered ideal only when done in the right way. The government forbids competition that leads to a customer or worker exploitation. The influence in politics sides with the employers who then enact laws that see the lowering of wages and forbid lobbying of the workers (Smith, Rossi, & Allenby, 2017, 12). Additionally, workers were taxed hence their gross salary was lowered. Smith puts the context of competition on the way the government provides an exclusive right to specific companies to produce, sell, and limit labour supply using guilds hence creating a monopoly. Those in power can secretly use their influence and create combinations to lower wages of labour at the expense of the works. The self-interest groups promote their agenda using twisted legislation by peddling their power and influence using their connection with the master (Kindleberger, 2016, 137).
The belief that the Australian economy is controlled by large and powerful firms is a myth. The fact is that the Australian economy is controlled by competition. However, only a few enjoy the supernormal profits which help in the growth of the economy. For example, the banking sector is enjoyed by Big Four which accounts for 17% of the aggregate profits, the supermarket sector is dominated by Woolworths and Coles who generate profit that is higher than the compensation the stakeholders derive (Cho, Mun, & World Scientific (Firm), 2013, 20). Other firms like Telstra, liquor retailers, internets service providers, insurance companies, betting agencies in sports and major city airports also enjoy dominance. According to Keynes, capitalism dominance in the economic crisis and subsidizes their vested interests causing social unrest. The popular intellectual and discontent hostility has led to socialism and doomed capitalism. Ideally, Keynes referred to the constant government control of societies and production that used the system. Despite Keynes opposing the proponents of socialism, he viewed societies that use the ideologies of socialism tend to prosper because of the enormous economic firms either public or private gradually developing to innovative economies. These arguments were wrong but his insight on capitalist’s economic success survives as it was unfinished and interrupted which led to own backlashes. The long-standing trend in the economic recovery displays the heated public reaction on the sluggish economic progress (Marris, 1992, 281). . .
