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.
-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.
Political Cartoon
Quote
Subjunctive question
If Keynes's theory hadn't been established, would the new deal be inexistent?
Interesting Fact
"The fact is - a fact not yet recognized by the great public - that we are now in the depths of a very severe international slump, a slump which will take its place in history amongst the most acute ever experienced. It will require not merely passive movements of bank rates to lift us out of a depression of this order, but a very active and determined policy."-Keynes
Summary
Roosevelt based his ideas on John Keynes theory. His theory was that government intervention was necessary in order to combat excessive boom and bust cycles in a nation's country.