What Exactly is Keynesian Economics?

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TakeAway Pizza
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What Exactly is Keynesian Economics?

What Exactly is Keynesian Economics? I posed this question here

http://answers.yahoo.com/question/index;_ylt=AnChiYOavyFbj66dop0wftwVxgt.;_ylv=3?qid=20110625004931AAS5Bam

Also if someone can answer this for me as I have no idea what Keyenesian Economics is?

Edited by admin on 11/08/2014 - 06:06
Mike7.62
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JM Keynes

You would have to read John Maynard Keynes "General Theory" to get the answer to that. It essentially means that during economic downturns that government can step in and make up for the lost economic activity from the private sector, and ease the economy through its "soft patch". Of course, this was supposed to be done from the surplus tax revenues that government had retained from the fat times. Once the economy was through its downturn, then government was supposed to back off and let the private sector become paramount again. It sounds good in theory, but reality is something else again, as government typically never has a surplus of funds, and must use tricks such as borrowing or printing money to "prime the pump", which only increases debt and pulls demand forward, resulting in malinvestments and distortions in the economy. Government also has never backed away from its interference in economic matters, and usually ends up crowding out the private sector for funds.  There are many subdivisions of Keynesian economic theory, each with its own special tweaks and specific  policy recommendations, but they all resort to government intervention in the economy. Those variations are why we're facing the hard times and likely economic collapse today.

That's pretty much it in a nutshell. I'm sure that there are many on this site who can give you a better read on the finer points, but that's how I understand it.

treefrog
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in keynes' defense...

keynes did intend the use of deficit spending to only be used in times of emergency...

.... but​ he must have been either profoundly stupid or exceptionally gullible (both?) to expect politicians not to interpret  the need to get re-elected as an emergency.

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jaj64
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PBS Documentary

Here is a very easy to watch PBS (surprisingly) documentary about global economics and how Keynesian Economics came to be. Its 2 hours long but VERY educational

http://video.google.com/videoplay?docid=-1466397368167658753#

crashjp
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Keynesian Theory

Here is a fun way to get basic learning in Keynesian Theory.

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crashjp
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Part 2

Part 2 is my favorite and i think it does a much better job than part 1 this should be mandatory viewing for all kids in high school.

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crashjp
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Keynesian planners

Dont be fooled by Keynesian planners.

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murphy
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Debt, Deficits and Demographics

This came into my inbox this morning

http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/archive/2011/06/27/the-3-d-hurricane-and-the-new-normal.aspx

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