Hayek on Free Markets and the Role of Government
University of California Santa Barbara economics professor Lanny Ebenstein taught a class comparing the work of John Maynard Keynes, Friedrich Hayek, and Milton Friedman. Here he discusses the view of Hayek on capitalism and the role of government.
Description
University of California Santa Barbara economics professor Lanny Ebenstein taught a class comparing the work of John Maynard Keynes, Friedrich Hayek, and Milton Friedman. Here he discusses the view of Hayek on capitalism and the role of government.
Bell Ringer Assignment
- Clip #1: What historic evidence does Professor Ebenstein present to show that free markets have been more productive over time?
- Clip #1: What does Professor Ebsenstein state was the fundamental macroeconomic issue throughout the 20th century?
- Clip #1: How does the view of the role of government evolve?
- Clip #2: What practical economic question did socialist nations, such as the Soviet Union, have to answer after their formation?
- Clip #2: Hayek conceded that the government did serve a vital role in providing social services and in creating the framework of the market. Explain this role of government in the context of the Great Depression.
- Clip #3 How does Hayek define socialism? Explain how this may different from the contemporary definition of socialism.
- Clip #3: What examples does Professor Ebsenstein provide as times in which Hayek believed the government should intervene in the market?
- Clip #3: What famous economist does Hayek cite to support this position?
Additional Resources
Participants
Vocabulary
- Adam Smith
- Federal Deposit Insurance
- Free Market
- Friedrich Hayek
- Great Depression
- New Deal
- Property Rights
- Road To Serfdom (1944)
- Socialism
- Soviet Union