Keynesian economics is better than Austrian economics for the US economy

Thank you to my formidable opponent for your acceptance.The full wording of the resolution is important: "Keynesian economics is better than Austrian economics for the US economy" The US economy has a unique benefit over all other world economies. The US is the world's reserve currency. This means that all other economies must hold US currency in order to trade with us. Since the US is nearly tied or on par (with China) as the world's largest GDP economy, it is inherently desirable to trade with US. More on this later.I would like to ask the voters to play close attention to sources during this debate. I understand that my opponent is arguing that Austrian economics is better than Keynesian for the US economy so it would be expected for him to use sources that support this school, but any think tanks, opinions, theoretical scenarios, etc., should not be accepted. I'm sure that many people reading this debate have little to no knowledge of economics. It'll be important for me to explain some key economic concepts before moving forward with proving the resolution. In order to show that the resolution is true, one must have adequate knowledge of fundamental economic principles. By understanding fundamental economic principles, readers will have more insight as to whether the Keynesian or the Austrian school is better for the US economy. First,What is an economic system?"An organized way in which a state or nation allocates its resources and apportions goods and services in the national community."http://www.businessdictionary.com...Economic systems are necesssary because resources are scarce or in finite supply. Scarcity is fundamental to economics. If nothing was scarce there would be no reason to economize anything and "economics" wouldn't exist. There are many different types of economic systems but in the US it's a mixed economy.A mixed economy means that there is a balance of economic power between the government and the private sector. Schools of economic thoughtThere are many different schools of economic thought. These include: Keynesian, Austrian, monetarist, neoclassical, chicago school, etc,. We'll focus on just the Keynesian vs the Austrian school.The Austrian school believes that economic activity will be maximized without intervention from government. It's a very libertarian and laissez-faire view of the economy. They believe that the national debt should have a 0 balance. They believe in supply-side economics: that the more producers produce, the more the economy will be stimulated. The Austrian school also believes that during recessionary periods the government should not step in and try to help.The Keynesian school believes the opposite. This school believes that economic activity is maximized by government stimulus. The Keynesian school believes that the private sector is inherently unstable if left alone to pursue their economic interests. During a recession the Keynesian school believes that the government should manipulate interest rates to stimulate demand and result in stimulating the economy. The lower the interest rates are, the more money people will borrow. So the Keynesian school is a demand-side rather than supply-side theory of how the economy works. They also believe that the national debt is necessary and even helpful to encourage economic activity if the crowding out effect will not occur. GDPGross domestic product is the value of all goods and services produced domestically within a year. The formula for GDP is:GDP = C + I + G + (X - M)C = consumption spending (accounts for 70% of economic activity)I = investmentG = government spendingX = exports M = imports.What we can deduce from this is that government spending will increase economic activity. So whatever +G or increased government spending results, GDP will increase. So economic activity is maximized by government stimulus. This supports the Keynesian view of maximization of economic activity vs. the Austrian view.Secondly, the US is the world's reserve currency meaning that other countries must hold our currency in order to trade with us.Reserve currency: "A foreign currency held by central banks and other major financial institutions as a means to pay off international debt obligations, or to influence their domestic exchange rate. A large percentage of commodities, such as gold and oil, are usually priced in the reserve currency, causing other countries to hold this currency to pay for these goods."http://www.investopedia.com...Take a look at how US currency dominates the world's reserve currency: http://www.wsj.com... So what this graph tells us is that the mast majority of currency that is held by foreigners is debt in US dollars. If the debt is in US dollars this means that no matter what level of national debt the US incurs, other countries must hold our dollars in order to trade with us. Since the US is inherently desirable to trade with, being nearly on par with China as the world's largest economy, government spending is a unique privilege to whatever is the world's reserve currency. The US is the world's reserve currency so we have this unique privelege. Opportunity costOpportunity cost is the implicit cost of whatever you gave up to pursue a course of action. For example, for 4 hours I can work at a lemonade stand and get paid $2 an hour. However, I could've worked at the mall and gotten paid $8 an hour over those same 4 hours. The opportunity cost or implicit cost of working at the lemonade stand is $6 per hour.The point in mentioning opporunity cost is that the US in a position to keep the national debt at an even balance, but has the privelege to spend beyond beyond our means resulting in increased GDP (+GDP), enhancing economic growth while the holders of our currency bear the burden. This is a burden that these foreign countries are willing to bear because the US is inherently desirable to trade with. So since government spending increases GDP and given that the US is the world's reserve currency that all other countries are willing to hold no matter what level of spending occurs (+G resulting in increased GDP), Keynesian economics is better than Austrian for the US economy.