Comparing Marx, Keynes, Friedman, And Rand

Many successful economics exhibit multiple components of various economic schools of thought. Each school of thought has their individual strengths and why theoretically they could work, however, each have their own inherent weaknesses including the most popular ones in effect today.. The schools of Marx, Keynes, Friedman, and Rand have received particular interest and have been used in varying degrees in the history of the modern economy. First, Marxism arose from the economic theories of Carl Marx and was highly celebrated in the development of communism. Marxism specifically focuses on the inherent conflict between the preliterate (working class) and the bourgeoisie (the owners). However, several weaknesses exist from this economic viewpoint. Due to central planning and general government control, it has the ability to limit individual rights and the entrepreneurial spirit. The labor theory of value places particular emphasis on the amount of labor needed to produce a good or service in determination of value, however, Marxism does not take into consideration that value is sometimes defined by the market place and the consumer and not necessarily what is produced by laborers. Through labor owned

However, several weaknesses exist from this economic viewpoint. This economic school of thought has only a short run focus and does not take into consideration the long-term effect immediate decisions may have on the economy. It only focuses on the economy from a macro level and ignores microeconomic factors, such as market sectors or labor issues, that can effect the national economy. Keynesian places too much emphasis on the multiplier and ignores potential crowding out effects due to increased government