The Relationship Between Keynes And Social Democracy Essay

1911 WordsDec 20, 20168 Pages
Keynesianism is an economic theory believed to have been developed and propagated by John Maynard Keynes, who was a British economist. Keynes postulated that economic growth and reduced unemployment can be aided via the executive`s fiscal policies inclusive of spending to reinvigorate the economy, tinkering with interest rates, and appointment of confirmed statutes on market economics. This theory was developed in the 1930s as a way of better understanding the Great Depression. Keynes championed for expanded government expenditures and reduced taxes to energize demand in order to extricate the global economy out of the Depression. Since its inception Keynesianism was connected to social democratic big-government policies. Scholars like (Barr, 2004) have realised that the relationship between Keynes and social democracy is more composite than believed. Keynes can be referred to as the draughtsman of the main elements of social democracy policy especially in regards to full employment but according to (Skidelsky 2010), he did not believe in the enlargement of the welfare state and public ownership. Neoliberalism is based on an economic and social policy that is driven by the market and the reduction of the size of the government and giving more authority to local and state governments. Neoliberalism advocates for the eradication of regulations imposed on the private sector by the government, including the privatisation of services provided by the government which include
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