Could someone explain to me what Keynesianism is please?
Thank you !
Explanation from Alloprof
This Explanation was submitted by a member of the Alloprof team.
Keynesianism is an economic system that calls into question the absence of the role of the state advocated by the capitalist system.
This new economic system was suggested by the British economist John Maynard Keynes (hence the name Keynesianism) following the Great Depression of the 1930s. Keynes suggested a model based on that of capitalism, but he gave a greater role to the government. This is called interventionism. Thus, Keynes argued that a state’s government must intervene in the economy and the social sphere during a crisis by injecting money into social programs and in the fight against unemployment and business failures. Interventionism will be a current of thought favored in the United States by President Franklin Delano Roosevelt when he sets up the New Deal program to counter the effects of the Great Depression. This Keynesian-inspired American economic stimulus plan will also inspire the-Canadian Prime Minister Richard B. Bennett.
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