Pragmatism and Keynesian Theory

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Introduction

Pragmatism is a type of philosophical tradition which was first developed in the United States during the early 1870s. It is centered to link theory and practice. It reflects a situation in which theory is hauled out from practice, to be applied back and thereby forming what is known as intelligent practice (Dye, 2010). Pragmatism has continually been applied by various individuals including entrepreneurs.

How Entrepreneurial Policy Makers Incorporate Pragmatism Practices in Public Policy Research

Different entrepreneurs have made research and realized that, employee voice is less effective in any employment relationship. This is due to the fact that there are changes in nature of work, preferences of employer for flexibility which normally work to the disadvantage of the employees and finally the changes in institutional systems and policies which have failed to offer workers protection.

Entrepreneurs have therefore found it important to apply pragmatism in public policy research so as to come up with a concrete and wholesome entrepreneurial policy that will protect both the workers and the employer.

Policies have thus been made with attention to issues of authority, ensuring equity for all entrepreneurs and ensuring fairness through building of partnerships (Poul, 2011).

How Pragmatism Practices Have Changed In the Last Twenty Years

Due to the changes in employment relationship in the last twenty years, so does pragmatism. Work increasingly has become globalized with increase in education returns and competition between those with low levels and those with high levels of education.

Pragmatism practices have also changed to cater for this by being; rigid to discourage negotiations by employees, increment of wages for various occupations. There has also been an increase in employment creation so as to maintain value for markets, private security expansion and slight increase in rights for the workers.

Pros and Cons Associated With Keynesian Theory

Keynesian theory is very helpful in times of recession; for example, the stimulus spending which is aimed at improving some aspects like employment for example, giving businesses a lot of money so that they can hire more workers and in turn pay them, this will help in ensuring money circulation. However, looking at it in great depth, one realizes few of its pitfalls. First, it is very difficult to convince people not to save.

Excessive saving has been one of the key causes of economic recession (Alistair & Smith, 2007). This can only be eradicated if prices of commodities go up, individuals will then be forced to use their reserves so as to cater for the increment, and it makes the situation even tougher.

Excessive spending by the government may also have long term negative effects. The government may become broke and thus forced to raise taxes in order to raise revenues, this works to the disadvantage of the citizens.

How Policy Makers Can Improve Upon the Theory

Policy makers must understand the impacts of increased spending, debt incurring and lowering of taxes. If there are no good policies in place to regulate the economies spending, the process will continue recurring and the problem will not have been solved. Policy makers should therefore come up with standardized amount of money to be released in circulation so as to avoid economic recession.

There should also be strong measures in place to maintain the currency value over a long period of time. There should be enough money set aside for economic stimulus program aimed at boosting employment. Policies should also be made which limit government interference to the market. The market will run at its optimum without any form of interference.

References

Alistair, H. & Smith, J. (2007). Transformations of Policing. Boston: Ashgate Publishers,

Dye, T.R. (2010). Understanding Public Policy. Oxford: Pearson Prentice Hall.

Poul, D. (2011). Post Keynesian Macroeconomic Theory. New York, NY: Edward Elgar Publishers.

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