Essay on Keynes
Keynes Term Papers
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Keynesian Economics vs. Supply Side Economics Two controversial economic policies are Keynesian economics and Supply Side
economics. They represent opposite sides of the economic policy spectrum and were introduced at opposite ends of the 20th
century, yet still are the most famous for their effects on the economy of the United States when they were used. The founder of
Keynesian economic theory was John Maynard Keynes. He made many great accomplishments during his time and probably his
greatest was what he did for America in its hour of need. During the 1920 s, the U.S. experienced a stock market crash of
enormous proportions which crippled the economy for years. Keynes knew that to recover as soon as possible, the government
had to intervene and put a decrease on taxes along with an increase in spending. By putting more money into the economy and
allowing more Americans to keep what they earned, the economy soon recovered and once again became prosperous. Keynes
ideas were very radical at the time, and Keynes was called a socialist in disguise. Keynes was not a socialist, he just wanted to
make sure that the people had enough money to invest and help the economy along. As far as stressing extremes, Keynesian
economics pushed for a happy medium where output and prices are constant, and there is no surplus in supply, but also no
deficit. Supply Side economics emphasized the supply of goods and services. Supply Side economics supports higher taxes and
less government spending to help economy. Unfortunately,...
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