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Keynesian economics is an economic theory named after John Maynard Keynes, a British economist who lived from 1883 to 1946. He is most well-known for his simple explanation for the cause of the Great Depression. His economic theory was based on a circular flow of money, which refers to the idea that when spending increases in an economy, earnings also increase, which can lead to even more spending and earnings. Keynes' ideas spawned numerous interventionist economic policies during the Great Depression.

In Keynes' theory, one person's spending goes towards another person's earnings, and when that person spends his or her earnings, he or she is, in effect, supporting another person's earnings. This cycle continues on and helps support a normal, functioning economy. When the Great Depression hit, people's natural reaction was to hoard their money. Under Keynes' theory, this stopped the circular flow of money, keeping the economy at a standstill.

Keynes' solution to this poor economic state was to "prime the pump." He argued that the government should step in to increase spending, either by increasing the money supply or by actually buying things itself. During the Great Depression, however, this was not a popular solution. It is said, however, that the massive defense spending that United States president Franklin Delano Roosevelt initiated helped revive the U.S. economy.

It is if you re-write history. The Great Depression ended due to military Keynesianism. We were fighting a new war called World War II. The private sector still wasnt hiring. The government hired a lot of people to build tanks, planes, bombs, ships, munitions, guns, missiles,etc. This influx of money in people's pockets allowed them to pay off their debts, pay taxes, purchase goods, take care of their families. This ultimately also unfroze credit markets and banks began to lend again.

That depends on what you are trying to accomplish. If you're trying to promote economic growth then it can't possibly succeed. You can't fill a pool by trying to take water from the deep end and pour it into the shallow end. But if you are trying to ruin the economy such that more and more people will be dependent on the government, then it's working very well.

Well, it was revolutionary after 1929, but I'm not sure if keynesian models will work now. They're kind of old fashioned and, as you know, economy's changed drastically during the last decades.

Besides, I don't like government's interventionism.

It's unfortunately fueled by both sides, with liberals wanting endless social services, and conservatives thinking deficit military spending sounds like a great idea, because it will make their southern defense industry supporters happy back home.

We are doubly sc****d, basically, that's why there's no brakes to this runaway train.

thats not the problem..the problem is that the govt is NOT acting on behalf of the majority of the people...the top 2% are doing very well, so the govt, which serves them, does nothing for the bottom 98%

https://www.youtube.com/watch?v=N6RWWWjE2Rc

https://www.youtube.com/watch?v=Hrg1CArkuNc

no it is making things worse

It's never been implemented.