Keynes’s economic theory returned to fashion.

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Keynes’s economic theory returned to fashion.
About 63 years later, the British economist John Maynard Keynes was enjoying a revival in popularity. Keynes’s theory was considered radical in their time, but it is at the heart of the coming government’s thinking about how to deal with the American economic crisis.
As NPR’s Adam Davidson tells renee montani, Keynes was a man of many contradictions. Graduated from Cambridge and eton, he is a member of the British elite. But he is also a shocking figure – for example, he is openly gay.
“He would bring her boyfriend to dinner and talk about marrying them,” Mr. Davidson said.
Keynes’s writing did not shy away from controversy. He is a prolific writer, owns a magazine and publishes his own books. And he doesn’t worry about anyone contradicting himself.
“One day he was a free-market extremist and the next day he was a socialist,” Mr. Davidson said.
Keynes was not shy about expressing controversial social views.
“He doesn’t like jews,” says Davidson. “He didn’t like the French, he really found that americans were stupid – he didn’t think they had the right to have as much power as the world, and he didn’t care about the working class at all.”
However, the president-elect is expected to support many Keynesian ideas as a possible solution to the current economic crisis.
The reason, Davidson says, is the idea that Keynes put forward in his book, “the general theory of employment, interest and money,” published in 1936.
Mr Davidson says that before Keynes, most economists thought the market was in the best position to allow self-regulation. But Keynes argued that markets could reach levels they could not self-correct – which could lead to persistently high unemployment and economic stagnation.
Davidson said, Keynes solution may sound familiar, anyone read business news headlines today, said: “when all else fails, the government can enter the private sector failed, and dynamic economy.”
“Basically, you can say that the economics profession since 1936 has had a huge debate about what Keynes meant,” he said.
The economic boom in America after world war ii was cited as evidence of Keynes’s right. But critics point to the economic policies of President Kennedy and President Nixon as evidence that Keynesian ideas do not apply to the American economy.
Mr Davison said the ideas were likely to be tested quickly as the us government tried to address the problems of the us financial and housing sectors.

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