POL SCI 4 Lecture Notes - Lecture 21: Neoliberalism, World War I, Basic Income
15 Apr 2017
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Friedman (1) reconcile f-knowledge from freedom and h- centralized knowledge bad (2) responsibility: f-only for yourself and h-neighborhood effects. Keynes looked at the collapse of the economic system in 1929. Animal spirits - people not driven by reason, but by their sensibilities and emotions. During the depression, government pay people to work (in order to stimulate hiring and in turn buying) Overall idea that the market is fundamentally flawed. Freedom: market freedom, no concentration of power. Freedom is important because it allows progress, and economic freedom. Argument that economic freedom leads to political freedom is contributes to political freedom supported by. Perfect market (1) economy disperses power (2) free markets coincide with free society (historically) Everyone is pricetaker - no one but the market dictates the prices. Exceptions to the dominant model of markets - these are areas where the markets start to break down and government intervention is needed.
