John Maynard Keynes
Notes
-British economist
-Governments should spend their way out of depression
-Borrow money to be repaid after economy recovers
-Deficit financing
-Projects should be of value to the country
-Went against Adam Smith's theories
-USA, Japan and Hitler's Germany all use this with success.
-British economist
-Governments should spend their way out of depression
-Borrow money to be repaid after economy recovers
-Deficit financing
-Projects should be of value to the country
-Went against Adam Smith's theories
-USA, Japan and Hitler's Germany all use this with success.
Quote: "Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone." - John Keynes
Political Cartoon
BIG Question; Why was this so successful, how was it different from the new deal?
Summary
Showed the importance of a country's involvement in getting the economy back on its feet. The government must spend money to get the economy moving again and worry about debt once money can be made.
Showed the importance of a country's involvement in getting the economy back on its feet. The government must spend money to get the economy moving again and worry about debt once money can be made.