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May 14, 2010

John Maynard Keynes (1883–1946)

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John Maynard Keynes was the father of a "mixed economy" in which the government plays a crucial role. Many believe that government should not have a role in a capitalistic system, viewing such a role with considerable distrust and suspicion. As a result, many find Keynes's theories to be as offensive as those of Marx.

One of the main tenets of Keynes's theory—in conflict with both Smith and Marx—is that economic problems in a capitalistic society are not self-correcting and that economies cannot keep growing indefinitely. He believed that if there is nothing to support capital growth, a depressed economy requires outside intervention or a substitute for business capital spending. Keynes believed that only government intervention could get a country out of a depression and the economy back on track.

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