Based upon your reading in The Worldly Philosophers by Robert L Essay

establish upon your reading in The Worldly Philosophers by Robert L. Helibroner, as well as CREDIBLE outside sources, system the di - Essay ExampleBoth Joseph Schumpeter and John Maynard Keynes were subjected to the same economic period, suffering from economic recession and aimed at developing theories aimed at economic development. However both analyzed the situation differently and thusly spy different economic problems which made them to come with different definitions of the economics, which are very important in rationality the youthful economic trends and situations. In an effort to solve the economic crisis, Keynes called for government intervention. Holding to the fact that bills was not an just a means of ex variety as was stipulated by the likes of Adam Smith and David Ricardo, unbosom the supply of money, and to be specific money speed had an adverse effect on the demand of goods, Keynes gear up it across that regulation of money supply would improve economic co nditions during recession (Heilbroner 267). To come up to this conclusion, Keynes held lack of control of money supply in the capitalistic system had caused the recession. Schumpeter agreed to Keynes idea that the failure of capitalist system resulted to the economic recession but attributed the failure to poor relation between capitalist investors and the tangible managers of the investment projects who happened to be employees. According to Schumpeter, the managers salaries are not correlated to the companys profit and thus dont strive to maintain or improve future returns. Although Schumpeter did not reject interventions, he held that capitalism could be maintained and its success accelerated creative destruction that is replacement of old careworn business models by new entrepreneurs innovations. What determines real price of commodities is a question that most economics realize had in their minds. Keynes was not an exception, although his answers portrayed a view completely different from his predecessors. To develop his theories, Keynes held that money and belief were real, and greatly influenced commodity prices (Heilbroner 270). Disregarding that firms and individuals had any impact the economy as demand which was only stirred by money velocity influenced capital formation, productivity and employment. However Keynes held the assumption that his theory was only useful if the velocity of money was held constant. Schumpeter embedded on this assumption and criticized the whole theory on the fact that velocity of money can only be constant in primitive societies and not in the modern complex economic conditions. It was Keynes ideas, of fiscal and monetary policies that were used to solve the recession problem. However, equilibrium conditions were only obtained in the short run just as they were proposed by Keynes. Schumpeter criticized Keynes short run solutions as not sympathize with about the future. Schumpeter identifies that the central economi c problem was not equilibrium as stipulated by Keynes, and suggested that structural change was more realistic. In attempt to solve the problem, he maintained that capitalist, not discarding intervention can still thrive given his theorem of the innovator. Schumpeter emphasized that equilibrium solutions were only short run that could not prevail in the long run due to structural changes. Contrary to their predecessors, Keynes and Schumpeter replaced the argument demand or supply of