21 jan 1935 ano - Keynesian Economics

Descrição:

During the great depression, John Maynard Keynes proposed an economic theory that would later be coined as Keynesian economics. The basic concept of Keynesian economics was that the government, especially in times of recession, should be actively involved in stimulating the economy instead of staying out of the system. In the most simple terms Keynes believed that during a recession the government should run a deficit in order to stimulate both economic growth and technological development by the government hiring private companies to build infrastructure and other public works, this in turn, would require the private companies to hire more people thereby stimulating the economy. This is a shift to the left as it is more government intervention in the economy even though the government is attempting to stimulate a capitalist economy. In simpler terms even though the government is stimulating the capitalist economy the basic act of government intervention is left wing in nature.