John Maynard Keynes and His Contribution to Economics and America Essay

IntroductionWith the recent recession John Maynard Keynes and his theories are being debated by millions of Americans, though possible without their knowledge, as his theories have become integral to Americas economic policy. A search of John Maynard Keynes on Google news, limited to just the past week, yields much than 200 results, illustrating the scope of Keynes continued influence. Fueled by concerns over unemployment and inflation the debate rages over governments role in the economy, including regulation of industry, tax revenue rates, and government outgo to stimulate the economy. What people are really arguing over are the merits of supply-side economic versus demand-side. Keynes or Keynesian economics is based on the notion that government can boost employment or cut inflation by manipulating the demand side of the economyincreasing government spending and expanding the money supply to boost employment and doing just the opposite to hold down inflation. The two decades between 1919 and 1939 had seen great economic instability. The economic troubles were being see both at home and abroad. In addition to the unemployment plaguing America and other major capitalist industrial nations--Britain, France, and Germany there was also nightmare inflation, collapsing banks, and agrarian and industrial devastation. The start of this economic collapse coincided with the end of knowledge base War I and the accompanying peace treaty.Keynes, a British economist had been advising his government throughout World War I, including The Paris Peace Conference. He entered the international scene of economics with his 1919 book titled, The Economic Consequences of the Peace. The book captured his views following the Treaty... ...s, 1989. Print. (432) Ibid, 432 What Was the New Deal? Franklin D. Roosevelt - American inheritance Center, Inc. 2006. Web. 21 May 2011. . Hofstadter, The America Political Tradition, 442 Subtopics as suggested by Donald Morgan. Qtd In Reich, Economist Keynes, 3 Qtd In John Maynard Keynes. The Concise Encyclopedia of political economy. 2008. Library of Economics and Liberty. 5 June 2011. . Ibid Hicks, J. R. Mr. Keynes and the Classics A Suggested Interpretation. Econometrica. Vol. 5, No. 2 (Apr., 1937), pp. 147-159 P. 147 Economics A-Z Economist.com. The Economist - World News, Politics, Economics, Business & Finance. Web. 22 May 2011. .