John Maynard Keynes

What was Keynes theory and how did he influence the dry land| frugality in the 19th century? Before the 1930s the US economy had been ruled by the forces of supply and demand and with as small government interference as possible and it seemed if everything went smooth. But in reality the system favorite the middle- and the upper-class, so about one-half of the American population did not participate in the economical growth. Wealth and purchasing power were un thus far distributed and over intersection in industry and agriculture became a severe problem. In addition, speculation in stocks had driven the value of the stocks up to phantasmagoric heights. All this is said to be some of the causes for the Great clinical depression that reflects the 1930s. What triggered the depression was the crash on the New York Stock central in October 1929. John Maynard Keynes, a British economist, was one of many a(prenominal) that launched his ideas on how to get the world economy back on track. In the book The General Theory of Employment, Interest and Money, from 1936, he challenges the economists who said that the economic problems would correct it selves and that the government shouldnt do a thing about it. Other had said that the wages should be reduced, and thereby it would increase the demand after subject areaers and semi-products.

Keynes disagreed with these views, and he state that if the wages were lowered, peoples purchasing power would be even more reduced and this would eventually lead to lower prices on industrial products and other merchandises. The unemployment grew rapidly all over the world during the Depression, and it is estimated that nearly 50 million people were out of work in the industrialized countries. One of Keynes main ideas was an active government. He meant that unemployment was totally meaningless, economically speaking. Because the machines stood there, there were plenty of workers and there were crown but few took the chance of using and investing it. What was wanting was... If you want to get a full essay, order it on our website: Orderessay

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