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Part One: Keynes Theory
The video, http://www.youtube.com/watchv=6XbG6alUlog talks about the different issues of
Keynes theory. Keynes most importantly cites the impacts of demand and supply forces and
output. Demand and supply are known to affect the prices of commodities. However, the
changes effected on price by these forces are slow and are not impacted immediately. A
change in demand is however related to a shift in output levels. It is because an increase in
demand necessitates an increased output while the vice versa is true. In Keynesian theory, a
mixed economy where the public and private sectors have equal opportunities in the system is
necessary. In such an economy, the private sectors operations are regulated by the
government. The regulation is argued to encourage quality production and maintain healthy
competition where firms with superior production powers do not push the minor ones out of
the market.
Part Two: Capitalism by George Reisman
George in his book defends classical economics contributions. In the book, George
divides his arguments into three chapters where he talks about the foundation of economics,
the division of labor and capitalism and the process of economic progress. In the foundation
of economics, he defines, describes the nature and relationship of wealth to humankind and
the negative impacts wealth accumulation has on the environment. In division of labor and
capitalism, he defends laissez-faire capitalism, rejects monopoly and campaigns for a pure
