Economic Advisiors

By: Jaden F, Abby F, Kylie C, Alec B, and Nick B

Adam Smith

Adam Smith is typically known as the father of economics and he was the worlds first free-market capitalist. He was fond of the laissez-faire philosophies, which included minimizing the government’s role in economics and taxation in the free market. Adam Smith was a big part in “Invisible Hand”, which was basically a theory that there is a an invisible hand guiding supply and demand.

Smith would advise us when to interfere and when to ease up on regulations concerning companies. Anything relating to when the government's intervention is needed or not needed, would be his areas of expertise.

Milton Friedman

Milton Friedman is known as the father of Income Tax Withholding. He started off studying economics and mathematics at multiple Universities. During WW2 he took a break from school and started work with the treasury department. He was part of a project that created the withholding of income tax to help fund the war. It was originally intended to only work as a temporary measure, but it ended up staying around. Once the war ended he began to teach and publish his own papers.

He advocated a hard money policy where a specific amount of money in a circulation would increase at the same rate as the nation’s economic growth. He was the definitive defender of a free-market capitalism. He also had advocated the necessity of floating currency. Friedman also won a nobel prize. Friedman was also an advisor that would enable us to maintain a strong currency.

Friedrich Hayak

Friedrich Hayek was known as a Renaissance man. Hayak made fundamental contributions in policy theory, psychology, and economics. He is the best known advocate of what is now called the Austrian Economics. Most of Hayek’s work from the 1920s through the 1930s was in the Austrian theory of Business Cycles, capital theory, and monetary theory. Among the three, he saw a consistent pattern.

In Hayak's eyes, the virtue of the free-market was that it gave the maximum latitude for people to use information that only they have. It would be very beneficial to have Hayek as an advisor to be able to achieve a balance of supplying a fair amount of rewards to each citizen.

John Maynard Keynes

John M. Keynes was one of the most respected economists of the century with his book "The Economic Consequences of the peace". In the 1920s Keynes was a believer in the quantity theory of money. His major policy view was that the way to stabilize the economy was to stabilize the price level. To do that, the government’s central bank must lower interest rates when the prices tend to rise and raise them when prices tend to fall. Keynes actually wanted wages not to fall, and in fact advocated in the general theory that kept wages stable. A general cut in wages, he argued, would decrease income, consumption, and aggregate demand.

By having him as one of our economic advisors, it would benefit our island’s economy because his advice of increasing interest rates when the prices of things are low to pay off the people that create the products, and are dropping in the price value.