08 Jun JOHN MAYNARD KEYNES AND HIS CONTRIBUTION TO ECONOMICS AND AMERICA
Introduction
With the recent recession John Maynard Keynes and his theories are being debated by millions of Americans, though likely without their knowledge, as his theories have become integral to America’s economic policy. A search of “John Maynard Keynes” on Google news, limited to just the past week, yields more than 200 results, illustrating the scope of Keynes’ continued influence. Fueled by concerns over unemployment and inflation the debate rages over government’s role in the economy, including regulation of industry, tax rates, and government spending to stimulate the economy. What people are really arguing over are the merits of supply-side economic versus demand-side. Keynes or “Keynesian economics is based on the notion that government can boost employment or cut inflation by manipulating the demand side of the economy—increasing government spending and expanding the money supply to boost employment and doing just the opposite to hold down inflation.”
“The two decades between 1919 and 1939 had seen great economic instability.” The economic troubles were being exper…
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