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two controversial economic policies are keynesian economics
and supply side economics. they represent opposite sides of the
economic policy spectrum and were introduced at opposite ends of the
20th century, yet still are the most famous for their effects on the
economy of the united states when they were used.
the founder of keynesian economic theory was john maynard
keynes. he made many great accomplishments during his time and
probably his greatest was what he did for america in its hour of need.
during the 1920's, the u.s. experienced a stock market crash of
enormous proportions which crippled the economy for years. keynes knew
that to recover as soon as possible, the government had to intervene
and put a decrease on taxes along with an increase in spending. by
putting more money into the economy and allowing more americans to
keep what they earned, the economy soon recovered and once again
became prosperous. keynes ideas were very radical at the time, and
keynes was called a socialist in disguise. keynes was not a socialist,
he just wanted to make sure that the people had enough money to invest
and help the economy along.
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