Basically, Keyensian economics talks about mixed economy.....
so in developing countries mainly, the govt. has to strike a balance between the public and the private sector to ensure better stability and also, it relieves some of their pressure as certain profit making ventures are undertaken by the private sectors.......
This way, the govt. is fulfilling its task of development and at the same time, Private sector is earning money............
So, politians see it as a good option and therefore follow suit.....
Keynesian economics are actually relatively unpopular in postwar terms. After the peak of interest in the 60s and 70s, the Reagan/Thatcher era turned the tables.
Mr Keynes gives politicians a good academic excuse for spending money. He leaves politics with a priority list: No.1 give stimulus, no.2 even if you don´t have the money.
So if a politician has a bad feeling about spending money he doesn´t have, a drop of Keynesian medicine and he will sell your childrens and your future for some instant well being.
It is because Keynesian economics makes sense in a flawed economic system.
I think it gave a formula which those not trained in economics could follow relatively easily.
This is an economic theory which has long since showed that it is a failed one. Many politicians like it for the reason that it puts government at the forefront of the equation. It assumes that the actions of government will create jobs and will stimulate the economy. Ultimately, it is an economic theory based on a socialist mindset in which theoretically everyone benefits when the spoils are evenly divided. The private sector is where the economy gets well in America. Government can only hamper that effort. Government can stall an economy with too much regulation and too much competition for the money in circulation. Government can hamper recovery by attempting to create what the private sector is there to do. The federal government is an infrastructure designed to manage the assets of America. It is not an economic engine nor does it operate like one. It creates no profit and is only an element of overhead. As Americans, we should be focused on the idea of reducing the size of governement to the smallest functional entity that we might manage our affairs, cut our costs, and quell our waste. Until we do that, things can only get worse. WB
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