John Maynard Keynes (economic theories)

John Maynard Keynes was an influential economist who believed that during economic downturns, governments should actively intervene to boost demand and support growth. He argued that private sectors could sometimes spend less, causing unemployment and recession. By increasing public spending and lowering taxes, governments can stimulate economic activity, create jobs, and help recover from downturns. Keynes’ ideas shifted economic thinking towards managed intervention, emphasizing that government action can stabilize economies and promote long-term prosperity, especially during periods of economic instability.