Does anyone here know anything about Keynesian Economics ?

[tradeunionsupporter]

What does Keynesian Economics call for the Government to spend money on to reduce unemployment ? I know Keynesian Economics calls for spending by the Government to put money in people's pockets than the people will create demand and than spend the money how does this work ?

A REVIEW OF KEYNESIAN THEORY

http://www.huppi.com/kangaroo/Keynesianism.htm

[ZeroNowhere]

It may be worth asking Zanthorus the Economics Moderator about this I think he has done some Research into the Topic for an Article and also he is Omniscient so that helps is that ok ?

[tradeunionsupporter]

Ok that would be great I know this is not a Keynesian forum but Im trying to understand Keynesian Economics.

[ZeroNowhere]

That is good to know hopefully this will be productive Good Luck.

[Dean]

What does Keynesian Economics call for the Government to spend money on to reduce unemployment ? I know Keynesian Economics calls for spending by the Government to put money in people's pockets than the people will create demand and than spend the money how does this work ?

A REVIEW OF KEYNESIAN THEORY

http://www.huppi.com/kangaroo/Keynesianism.htm

Keynes discussed using government purchases (often for public works projects) to spur demand during a recession, and taxes to stifle inflation.

[RichardAWilson]

As was mentioned, Keynes believed in investing financial resources in public works and infrastructure to create jobs (via the spending multiplier) and revive a nation's consumption. (Aggregate Demand)

During a recession, Keynes even made the case to tax higher income households and use those collections toward public works.

(I.e. The rich have a higher propensity to save than the working classes. During a financial crisis and recession, financial firms and businesses aren't spending the upper class's savings.)

During periods of economic stabilization (I.e. Recovery and Growth), Keynes called for raising taxes and curbing national spending to restrain inflation and balance the books.

There is, of course, much more to Keynesian macroeconomics. However, that's the rough run down.