Employment Insurance

Keynes- believed that government intervention into the economy was necessary to increase the total spending and lift the economy out of a recession.

Hayek- Governments who plan their societies are doomed to fail .Humans are simply too complex and can never match the natural evolutionary wisdom that comes from a free society. His theory was based on the Soviet Union and Nazi Germany, both of which failed.

Employment Insurance

                Hayek and Keynes supporters would have very different views on Canadian employment insurance however I think the idea of employment insurance fits better with the views of a Keynes supporter.  Employment insurance is a service provided Canadian`s who have lost their job through no fault of their own. (Employment Insurance, 2011)Employment insurance is provided by the government taking money off of every pay check of all employee`s in the workforce an setting it into a fund. This is the fund which the money then comes out of to pay the unemployment insurance. Yearly the government handles 42 billion dollars (Congress, 2003), off of hardworking Canadian’s pay checks. The reason that I think a Keynes supporter would agree with the concept of employment insurance is that the concept involves the government handling large amounts of money and redistributing them to people who don`t have a current income so that they still have money to spend in the economy. Keynes once said “A claim for equality of material position can be met only by a government with totalitarian powers.” (Keynes, 2010) What was meant by this quote was that A Hayek supporter would disagree with health insurance. A few possible arguments made by a Hayek supporter could include that if the government did not take the money off of the pay checks then money could be left to the people working to spend, still leaving the money in the economy to spend and causing the government less hassle. “By a continuing process of inflation, and intervention, government can confiscate, secretly and unobserved, an important part of the wealth of their citizens.” (Hayek, 2010-2011)This illustrates how Hayek supporters hold the view that by leaving things alone and not having government intervene that everything will naturally right itself. So as you can see Keynes and Hayek had different views and their supporters have different views but no matter how they feel about it Employment Insurance is a part of Canada and shall remain a part until proven non- needed.

Bibliography

Congress, C. (2003, July 10). Executive Summary. Retrieved February 16, 2010, from Department of Finance: http://www.fin.gc.ca/consultresp/eiratesresp_3-eng.asp#Executive%20Summary

Employment Insurance. (2011, February 7). Retrieved February 16, 2011, from Service Canada: http://www.servicecanada.gc.ca/eng/sc/ei/index.shtml

Hayek, F. A. (2010-2011). Friedrich August von Hayek Quotes. Retrieved February 16, 2011, from Brainy Quotes: http://www.brainyquote.com/quotes/authors/f/friedrich_august_von_haye.html

Keynes, J. M. (2010). John Maynard Keynes Quotes. Retrieved February 16, 2011, from think exists: http://thinkexist.com/quotes/john_maynard_keynes/