John Maynard Keynes
John Maynard Keynes was one of the most influential economists of the twentieth century. His economic theories greatly influenced the modern economic landscape and are still studied, discussed and applied today.Born in 1883 in Cambridge, England, Keynes was a gifted student who quickly made a name for himself in economics. He was a key figure in the creation of the International Monetary Fund and the World Bank and is credited with helping to stabilize the global economy in the post-WWII era.
Keynes is best known for his work on macroeconomics and the influential Keynesian theories of economic stimulus and demand management. At the heart of his economic theories was the notion that government intervention in the economy and fiscal policy were integral to managing the ups and downs of the market system. He was also an early advocate for government programs to boost economic activity, such as unemployment benefits, investment in public works and infrastructure, and even a “Social Security” system.
Though he was a prolific writer and prolific speaker, Keynes did not write a single textbook on economics, instead preferring to contribute numerous chapters to books and other works. He was a renowned academic in the field of economics, earning him a fellowship at the prestigious Kings College, Cambridge in 1920. He went on to chair the British Economic Advisory Council in the 1940s, and he served as a consultant to the Bank of England and the Bank of International Settlements, prior to his death in 1946.
Keynes believed that economic downturns are psychological, as opposed to being caused by conditions in the economy. He argued that, if governments installed policies to boost demand, they could stimulate the economy and reduce unemployment. This view was in direct opposition to the more conservative economics of the time, which argued that such government interference would be damaging and only serve to prolong economic recession. Keynes was persistently vocal in his defense of the working class, arguing that economic policies should be favorable to them, and that the government should intervene in order to protect them from exploitation. He also advocated for a progressive taxation system and the introduction of a minimum wage.
Keynes is an important figure in the modern economics landscape and his legacy is evident in the mainstream economics curriculum. His theory of macroeconomics remains a major standard, as does his view that the government must take an active role in stabilizing the economy. His idea of stimulus to kickstart or restart an economy has been adopted by governments all over the world. Keynes advocated for governments to invest in their citizens, in infrastructure, and in public works. This philosophy is often touted by modern politicians, who have incorporated it into their economic policies.
John Maynard Keynes was an innovator who changed the way economists and governments looked at economic policy. His works remain a cornerstone of modern economic theory, and his legacy lives on in the economic systems of many countries around the world. He will continue to be a major influence in the world of economics for generations to come.
