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Macro & Micro economics
Movie Review,
Project description
Second YouTube Video – Burton W. Folsom, Jr. – Keynesianism and the Economic Principles of the New Deal (estimated time to complete 2.5 hours)
This 1 hour speech by Burton W. Folsom, an economic historian, makes a case against the theories of John Maynard Keynes idea that massive government deficit spending and federal regulation over the private sector can stimulate the economy. He is a rare professor in academia because he makes the case that FDR’s New Deal, partially based on Keynesian ideas, was a disaster and prolonged the Great Depression by almost a decade.
Toward the end of the speech, he makes another case as to why today’s massive government spending, taxation, regulation and massive money printing by the Federal Reserve Bank is not working. In many ways he also addresses many microeconomic issues such as price ceilings, tariffs, incentives, etc…
Written Assignment:
Please write a 550-to-1050 word paper on this speech. In addition to your own comments please make sure you address these questions within the body of your paper.
What are Professor Folsom’s strongest arguments against Keynesian economic theory?
Did you find any weaknesses in his speech?
Do you have any suggestions on how the Keynesian model can be improved?
You are free to make any other comments.
You can use more than 2 reference if you want to.