Keynesian revolution

The Keynesian Revolution refers to the shift in economic thought sparked by John Maynard Keynes in the 1930s. Before him, classical economics believed markets naturally balance themselves. Keynes argued that during downturns, private individuals and businesses often cut spending, causing unemployment and recession. Government intervention, through increased spending and policies to boost demand, can help stabilize the economy and promote growth. This approach transformed economic policies worldwide, emphasizing active government roles in managing economic fluctuations to maintain full employment and steady growth.