Some economists worldwide are resurrecting the economic theory of the
influential and famous John Maynard Keynes. There is talk of returning
to Keynesianism, ie to use the budget deficit as a necessary tool for
achieving full employment. That is, if people in private does not
consume all their income then the government should do. Consumption,
according to Keynes, what is important and no savings.
Keynes became famous during the Great Depression, especially when
it published his book The General Theory of Employment, money and
credit, in February 1936. This book came to revolutionize the behavior
austere and prudent for the government we had until that time as to
balanced budgets. Of course we were already in place some of its
measures of greater government spending, albeit underachieving, for
allegedly reviving the economy, but it could be argued that the book
was the perfect justification for politicians to spend more than you
had.
The Keynesianism, explained in the simplest form,......
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