John Maynard Keynes

John Maynard Keynes was a british economist who had strong ideas that have had a mighty hard impact on modern economics, political theories, and government policies. His ideas were that the government should bail out the economy when they are faced with a recession and he thought the private sectors were inefficient. His ideas have played a huge roll on the economy today.

The idea that the government should bail out the economy in the time of a recession is the trend that many countries are following today. One prime example is the United States of America. Right now they are in a huge recession, and yet they keep loaning out money to people, and spending way more than they intake. In the long run they believe that this is a good thing, and will work to their advantage in the future. It will be interesting to see what happens in the future as the economy hopefully gets better. 

When Kaynes was going about this plan he had two main ideas that would make his plan possible. One was to invest in infrastructure, and other was reduce interest rates.  He believed that by doing these things the economy would start to progress and speed up again. However by doing these two things the value in money was lost, causing inflation. Inflation is a huge problem today because money is so common, and people do not realize the significant value of it; instead they spend in faster than they can intake it. Many countries today suffer from inflation, and I wonder if the ideas of Keynes is what started the popular trend of inflation?

I think one of the major problems with Keynes economic plans was the fact that he just wanted to ignore all the bad things about the economy and cover them up with money. Money cannot solve everyones problems, in fact most of the time they make things worse. In my opinion, Mr. Keynes plan was intelligent, but in the long run it did not give countries positive effects. It mostly started a bad trend that brought about inflation, and bad planning that has led many countries to lend out money they do not posses.

John Maynard Keynes' has had many strong ideas that have effected our economy today greatly. His ideas of bailing out the economy in the face of a recession have caused many countries to fall into inflationary issues. These issues that many countries are facing in the world are not going to be easy to get out of. I don't believe his ideas are going to help us in the long run because spending more money is not always the answer to the problems we face. I think we need to face these problems with our heads held high, and quit spending money we do not have!