1. 1. John Maynard KeynesBy: Anish Shivkumar
2. 2. Fighting the Great DepressionKeynes argued that the governmentshould fight the Great depressionthrough his system, called theKeynesian Theory. This theory statesthat in order for the government to besuccessful, the government shouldintervene. Another part of the theory isthat there should be a monetary policy,which is a policy in which the decisionsmade by a central bank which affectsthe size of the amount of money. Thistheory also says that the governmentshould intervene by making sure thatthe business cycle flows as smoothlyas possible.
3. 3. Franklin Ignores the theoryOriginally, Franklin had ignored Keynes and his theory.There are multiple reasons that were behind thisdenial. One of these reasons included the fact thatRoosevelt knew that Keynes had a Bachelors degreein math, rather than having one in economics. Anotherreason to this is because Keynes had not fullydeveloped his theory when he first met with Roosevelt.Another reason as to why Roosevelt ignore the theoryis because there were so many numbers involved thatRoosevelt thought that he was a mathematician ratherthan an economist.
4. 4. Did it help the Great Depression Yes, the theory of Keynes helped the U.S. outof the economy, but it was not the only thingthat helped the U.S. Keyness book, TheGeneral Theory of Employment, Interest, andMoney, he said that the Great Depression hadbeen caused by failure of aggregate demand.After lots of debate, the government finallydecided that Keyness Theory was the key outof the Great Depression, and so theyincreased their spending.
5. 5. A Downside to Keyness TheoriesOne of the major downsides to the Keynesstheories is that it is mainly for periods ofrecession rather than periods of economicgrowth. What this means is that it is mainly agood system to use during a recession, and itwould have no effect if it were to be used in agrowing economy. Another downside is that insome cases, it can create a huge debt over along time period.
6. 6. Explaining it in simple termsKeyness Theory basically says that in order forpeople to be rich and happy, and not be pooror sad, the government, or the leader of ourcountry, should help the people as much asthey can. The government should also create arule where important people decide on differentthings, which helps the U.S.A. Become richerand happier.
7. 7. Using Keyness theory in modern timesKeyness theory can be implemented todaythrough many different actions. The firstaction increases in the government spendingand investment. Another action wouldinclude expanding so that there would bemore creation of jobs. This action would alsoneed investment in better forms of energy.Another thing that the government can do isincrease the aggregate demand.