Keynes: Economic Visionary

It should be said that the greatest economic thinker of our time was John Maynard Keynes. His economic postulates were of great importance to a world that was ravaged by depression, underemployment, and a lack of economic understanding for these events. Keynesian thought was to change all this and provide a more accurate tool of analysis and theory of policy. The so-called ‘Keynesian economics’1 ended up being a perfect fit for its time, for had …

…problem was that aggregate demand could not keep up with supply. When workers were given lower wages to increase employment, according to classical economic thought, they were simply given less disposable income. With less money to spend they simply didn’t buy as much and with this lower level of consumption came fewer products being purchased and also fewer products being needed for production. Instead something else needed to be done to remedy this situation.