John Maynard Keynes and His Contribution to Economics and America Essay

Introduction With the recent recession John Maynard Keynes and his theories are being debated by millions of Americans, though likely without their knowledge, as his theories have become integral to America’s economic policy. A search of â€Å"John Maynard Keynes† on Google news, limited to just the past week, yields more than 200 results, illustrating the scope of Keynes’ continued influence. Fueled by concerns over unemployment and inflation the debate rages over government’s role in the economy, including regulation of industry, tax rates, and government spending to stimulate the economy. What people are really arguing over are the merits of supply-side economic versus demand-side. Keynes or â€Å"Keynesian economics is based on the notion that government can boost employment or cut inflation by manipulating the demand side of the economy—increasing government spending and expanding the money supply to boost employment and doing just the opposite to hold d own inflation.† â€Å"The two decades between 1919 and 1939 had seen great economic instability.† The economic troubles were being experienced both at home and abroad. In addition to the unemployment plaguing America and other â€Å"major capitalist industrial nations--†¦Britain, France, [and] Germany† —there was also â€Å"nightmare inflation, collapsing banks, [and] agrarian and industrial devastation.† The start of this economic collapse coincided with the end of World 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 Heritage 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 Economics. 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. .