John Maynard Keynes was an economist
With exceptional vision and optimism
He believes governments have power
To solve some of the greatest capitalist crises.
Keynes rejected faith in the idea of communism,
Or absolute wisdom of the idea of free and unrestricted market.
Instead, an approach was taken
Believing that governments could
By balancing the money here,
The establishment of a system there, to get rid of fluctuations
Peak and decline for all economies that seem so disastrously vulnerable.
Keynes believed that the basis of the Maiek countries is
Corruption and irrational policies and short-term visions but if corrected
These three ills can witness humanity’s era of terrible and lasting wealth.
He wrote a compelling article in 1930 at the height of the global economic crisis
Entitled “The economic potential of our grandchildren”
Keynes summarized his belief that most of the severe economic problems
Obstructed by the space allowed for the age can be the main challenge for humans
In how to fill their free time under the umbrella of prosperity and prosperity.
The economy was not a boring science for Keynes
It was a tool for achieving economic security for all.
Keynes’s background was rich, where he remained a constant throughout his life as part of the British establishment.
He was educated at Eton and Cambridge Universities.
Keynes was usually expanding toward his literary and artistic interest.
During his lifetime he maintained his relations with brilliant scientists and artists
Of the twentieth century was an integral part
From the Bloomsbury Group of Writers and Intellectuals.
For example, Virginia Woolf was one of his best friends
As recognized by the Bloomsbury Group
A good economy is the foundation of well-being
As a beautiful painting or literature in a deeper sense
Are not fundamentally different in their research
From the sources of achievement and attention to human errors and lack of insight
Keynes wrote in 1936.
The general theory of employment, interest and money.
Keynes in this work rethinking
In the causes of unemployment and in the hope of reducing new solutions
For this intractable problem in the 1930s
In addition to capitalism in general.
The traditional economy has given us three reasons for the existence of unemployment.
The first is that workers are temporarily unemployed when they move from job to job.
Second, individuals may simply choose not to work, especially if they can
Support themselves through some forms of social benefits.
But the third and most important reason is
That unemployment arises when wages are higher than employers can afford.
In the traditional model is supposed to free market
The last method will automatically correct
And that labor supply and demand
Will automatically balance.
Ensuring something close to full employment.
This will only happen if some external forces make an effort in the market
For example, if governments set a minimum wage
It artificially inflates wages
Or if trade unions organized workers would refuse to take
Low wages in depressed markets,
Under these conditions, the balance will not be achieved.
But Keynes objected to this traditional theory.
In 1930 there were huge numbers of unemployed people,
At least one million in Britain and 15 million in the United States.
These numbers were too large to ignore
As a result, people were divided between employees and unemployed.
And for the way jeans think
This level of unemployment was greater than could be explained
With the intervention of trade unions
Given that during the Great Depression years
High unemployment has put an end to the strength of the Union.
For Keynes lies the real problem of unemployment
In the lack of demand.
This has not been properly emphasized by economists
But it has become the focus of Keynes’ theories.
Classical economic theory was simply assumed
That demand for goods will return by itself
Once wages and work requirements are equal
But Keynes now announced the famous sentence
“In the long term we will all be dead”
In other words, this process may take a long time.
Keynes said it was not enough for economists and policy makers
To advise people simply to accept suffering in the short and medium term with knowledge
That at the end of the storm the sea will calm again.
What was already required was government intervention
In the economy for the judiciary
On the economic downturn
Thus restoring prosperity.
Traditionally in the case of economic downturn governments are going to
Supply methods to provide enhanced economic boost
Encouraging economic growth and creating jobs.
For example, if interest rates are cut, it will encourage
Savers to invest their money and provide cash
Both for existing businesses to expand
Or entrepreneurs to set up new projects.
Nevertheless, Keynes has now declared that there may be a firm belief
That the demand was very low
And that there were few points in the supply of goods.
In this case, traditional ways to promote economic recovery
Would be useless and something else would be needed.
If market mechanisms are unable to stimulate economic recovery, Keynes said it was the duty of the state
To progress to create demand by managing the budget deficit if necessary in order to create jobs.
In practice, this can be done by raising loans and using funds to finance large-scale public works
Which can return relatively quickly.
These may include construction of roads or railways
Or investment in infrastructure
Which will not only create jobs but will also leave a useful legacy for private enterprises.
Keynes’s view is that governments should play the role of chief shopper in the arena
Creating opportunities for demand until sources of demand are more widespread.
Keynes criticized the way governments deal with economic downturns.
And that their immediate and understandable motivation is to control expenditure and expenditure.
In any case, this is what the family does when the income is lost.
But what is wise in the family level is often disastrous if applied nationally.
Nations are not a family in any case,
Keynes needed to convince his audience
To work in violation of their basic instincts and the largest.
Reduce spending when the economy is deteriorating
Always solve the problem to be solved.
One of the obvious objections to Keynes’ focus on government spending
Who should pay for the loans?
In the presence of religion, the problem is simply to postpone religion to another day instead of solving it?
Here Keynes applied his theory, which became known as the “multiplier effect”
At first when creating jobs from public works
Governments will provide some of the money they would have spent on unemployment benefits.
Second, the increase in the number of people employed
May generate additional PPC and thus boost the economy and tax revenues.
There will be an indirect impact on the business
As an opportunity to serve public works programs that are becoming available.
The result will be an increase in tax revenues from businesses
It also began to flourish again.
After that, these revenues will repay the debts arising from the initial expenses.
This was the multiplier effect.
Keynes’ ability to conceptualize the macro-economic structure
Led to high demand during the Second World War.
When he went to work in the state treasury as a consultant
The nobility of 1942 arose like Baron Keynes of Tilton in Sussex County
Lord Keynes led the British delegation to the Bretton Woods conference in the United States
Where the allied nations reached a post-war economic policy.
Keynes did not believe that national governments were capable of managing economies successfully
But Keynes also believed that the world’s economic order was possible.
He told the world trade goal that nations should
Subscribe to create a new global standard for the account unit
It is a bancor.
And through a complex accounting system
Fake currency
Allowed to a recognized global organization
To impose fines on countries to deter them from managing the huge trade deficit or surpluses.
Such a system would help to eliminate peaks and dips
In world trade, it is not a coincidence that countries such as Britain are benefiting
Which had low gold reserves because of the cost of the war.
It was a wonderful and exciting idea at the same time.
But in the end Benkor did not materialize.
The United States, which was actively financing global economic reconstruction
After the war she ran large trade surpluses
She had no intention of accepting restrictions on these.
But many of the other proposals made by Keynes
Such as the creation of the World Bank and the International Monetary Fund
To oversee and encourage global trade has been accepted
The world has changed dramatically.
A testimony to Keynes’ belief that a global and national economic plan is both necessary and feasible.
The Bretton Woods debates were very stressful for Keynes.
In 1946, Keynes, 62, died of complications from a series of heart attacks.
But his legacy has not yet been destroyed.
During the 1930s or after the Second World War
Keynesian policies were adopted throughout the capitalist world.
Economies experienced a decline in unemployment levels
High levels of economic growth were recorded.
Keynes’s idea became the new Orthodox doctrine and was particularly attractive to the leftist party.
But by the 1970s he was Keynes’s critics
In particular Friedrich Hayek and Milton Friedman
Are gaining political positions in countries such as the United States and Britain.
They argued about small real estate, free markets and the downsizing of capital projects.
At the same time Britain and the United States began
Suffer from high inflation and high unemployment
Known as “inflationary collapse”
This phenomenon can not be explained by the Kenyan economy
Keynes’ ideas have also lost credibility
Thus giving way to the ideas of liberals.
However, the financial crisis in 2008
Policy makers were shocked and forced to consider alternatives to liberal thought.
When the situation worsened the global economy to the point of collapse instead of waiting to correct the market for himself
G20 countries announced an economic stimulus package
About 2% of GDP to stimulate growth.
As one Keynes critic admitted
“I think that each of us with Kinsey in the same depth”
Keynes’ ideas certainly need to be adapted to the conditions of the contemporary world
Keynes would agree.
It did not have a static or rigid concept of economics.
Yet when asked why in the thirties of the last century
Changed some of his positions on economic policy that had been held in advance
His answer was famous
“When the facts change, I change my conclusions.”
What do you do sir?
Translation team translated @autrjim
With exceptional vision and optimism
He believes governments have power
To solve some of the greatest capitalist crises.
Keynes rejected faith in the idea of communism,
Or absolute wisdom of the idea of free and unrestricted market.
Instead, an approach was taken
Believing that governments could
By balancing the money here,
The establishment of a system there, to get rid of fluctuations
Peak and decline for all economies that seem so disastrously vulnerable.
Keynes believed that the basis of the Maiek countries is
Corruption and irrational policies and short-term visions but if corrected
These three ills can witness humanity’s era of terrible and lasting wealth.
He wrote a compelling article in 1930 at the height of the global economic crisis
Entitled “The economic potential of our grandchildren”
Keynes summarized his belief that most of the severe economic problems
Obstructed by the space allowed for the age can be the main challenge for humans
In how to fill their free time under the umbrella of prosperity and prosperity.
The economy was not a boring science for Keynes
It was a tool for achieving economic security for all.
Keynes’s background was rich, where he remained a constant throughout his life as part of the British establishment.
He was educated at Eton and Cambridge Universities.
Keynes was usually expanding toward his literary and artistic interest.
During his lifetime he maintained his relations with brilliant scientists and artists
Of the twentieth century was an integral part
From the Bloomsbury Group of Writers and Intellectuals.
For example, Virginia Woolf was one of his best friends
As recognized by the Bloomsbury Group
A good economy is the foundation of well-being
As a beautiful painting or literature in a deeper sense
Are not fundamentally different in their research
From the sources of achievement and attention to human errors and lack of insight
Keynes wrote in 1936.
The general theory of employment, interest and money.
Keynes in this work rethinking
In the causes of unemployment and in the hope of reducing new solutions
For this intractable problem in the 1930s
In addition to capitalism in general.
The traditional economy has given us three reasons for the existence of unemployment.
The first is that workers are temporarily unemployed when they move from job to job.
Second, individuals may simply choose not to work, especially if they can
Support themselves through some forms of social benefits.
But the third and most important reason is
That unemployment arises when wages are higher than employers can afford.
In the traditional model is supposed to free market
The last method will automatically correct
And that labor supply and demand
Will automatically balance.
Ensuring something close to full employment.
This will only happen if some external forces make an effort in the market
For example, if governments set a minimum wage
It artificially inflates wages
Or if trade unions organized workers would refuse to take
Low wages in depressed markets,
Under these conditions, the balance will not be achieved.
But Keynes objected to this traditional theory.
In 1930 there were huge numbers of unemployed people,
At least one million in Britain and 15 million in the United States.
These numbers were too large to ignore
As a result, people were divided between employees and unemployed.
And for the way jeans think
This level of unemployment was greater than could be explained
With the intervention of trade unions
Given that during the Great Depression years
High unemployment has put an end to the strength of the Union.
For Keynes lies the real problem of unemployment
In the lack of demand.
This has not been properly emphasized by economists
But it has become the focus of Keynes’ theories.
Classical economic theory was simply assumed
That demand for goods will return by itself
Once wages and work requirements are equal
But Keynes now announced the famous sentence
“In the long term we will all be dead”
In other words, this process may take a long time.
Keynes said it was not enough for economists and policy makers
To advise people simply to accept suffering in the short and medium term with knowledge
That at the end of the storm the sea will calm again.
What was already required was government intervention
In the economy for the judiciary
On the economic downturn
Thus restoring prosperity.
Traditionally in the case of economic downturn governments are going to
Supply methods to provide enhanced economic boost
Encouraging economic growth and creating jobs.
For example, if interest rates are cut, it will encourage
Savers to invest their money and provide cash
Both for existing businesses to expand
Or entrepreneurs to set up new projects.
Nevertheless, Keynes has now declared that there may be a firm belief
That the demand was very low
And that there were few points in the supply of goods.
In this case, traditional ways to promote economic recovery
Would be useless and something else would be needed.
If market mechanisms are unable to stimulate economic recovery, Keynes said it was the duty of the state
To progress to create demand by managing the budget deficit if necessary in order to create jobs.
In practice, this can be done by raising loans and using funds to finance large-scale public works
Which can return relatively quickly.
These may include construction of roads or railways
Or investment in infrastructure
Which will not only create jobs but will also leave a useful legacy for private enterprises.
Keynes’s view is that governments should play the role of chief shopper in the arena
Creating opportunities for demand until sources of demand are more widespread.
Keynes criticized the way governments deal with economic downturns.
And that their immediate and understandable motivation is to control expenditure and expenditure.
In any case, this is what the family does when the income is lost.
But what is wise in the family level is often disastrous if applied nationally.
Nations are not a family in any case,
Keynes needed to convince his audience
To work in violation of their basic instincts and the largest.
Reduce spending when the economy is deteriorating
Always solve the problem to be solved.
One of the obvious objections to Keynes’ focus on government spending
Who should pay for the loans?
In the presence of religion, the problem is simply to postpone religion to another day instead of solving it?
Here Keynes applied his theory, which became known as the “multiplier effect”
At first when creating jobs from public works
Governments will provide some of the money they would have spent on unemployment benefits.
Second, the increase in the number of people employed
May generate additional PPC and thus boost the economy and tax revenues.
There will be an indirect impact on the business
As an opportunity to serve public works programs that are becoming available.
The result will be an increase in tax revenues from businesses
It also began to flourish again.
After that, these revenues will repay the debts arising from the initial expenses.
This was the multiplier effect.
Keynes’ ability to conceptualize the macro-economic structure
Led to high demand during the Second World War.
When he went to work in the state treasury as a consultant
The nobility of 1942 arose like Baron Keynes of Tilton in Sussex County
Lord Keynes led the British delegation to the Bretton Woods conference in the United States
Where the allied nations reached a post-war economic policy.
Keynes did not believe that national governments were capable of managing economies successfully
But Keynes also believed that the world’s economic order was possible.
He told the world trade goal that nations should
Subscribe to create a new global standard for the account unit
It is a bancor.
And through a complex accounting system
Fake currency
Allowed to a recognized global organization
To impose fines on countries to deter them from managing the huge trade deficit or surpluses.
Such a system would help to eliminate peaks and dips
In world trade, it is not a coincidence that countries such as Britain are benefiting
Which had low gold reserves because of the cost of the war.
It was a wonderful and exciting idea at the same time.
But in the end Benkor did not materialize.
The United States, which was actively financing global economic reconstruction
After the war she ran large trade surpluses
She had no intention of accepting restrictions on these.
But many of the other proposals made by Keynes
Such as the creation of the World Bank and the International Monetary Fund
To oversee and encourage global trade has been accepted
The world has changed dramatically.
A testimony to Keynes’ belief that a global and national economic plan is both necessary and feasible.
The Bretton Woods debates were very stressful for Keynes.
In 1946, Keynes, 62, died of complications from a series of heart attacks.
But his legacy has not yet been destroyed.
During the 1930s or after the Second World War
Keynesian policies were adopted throughout the capitalist world.
Economies experienced a decline in unemployment levels
High levels of economic growth were recorded.
Keynes’s idea became the new Orthodox doctrine and was particularly attractive to the leftist party.
But by the 1970s he was Keynes’s critics
In particular Friedrich Hayek and Milton Friedman
Are gaining political positions in countries such as the United States and Britain.
They argued about small real estate, free markets and the downsizing of capital projects.
At the same time Britain and the United States began
Suffer from high inflation and high unemployment
Known as “inflationary collapse”
This phenomenon can not be explained by the Kenyan economy
Keynes’ ideas have also lost credibility
Thus giving way to the ideas of liberals.
However, the financial crisis in 2008
Policy makers were shocked and forced to consider alternatives to liberal thought.
When the situation worsened the global economy to the point of collapse instead of waiting to correct the market for himself
G20 countries announced an economic stimulus package
About 2% of GDP to stimulate growth.
As one Keynes critic admitted
“I think that each of us with Kinsey in the same depth”
Keynes’ ideas certainly need to be adapted to the conditions of the contemporary world
Keynes would agree.
It did not have a static or rigid concept of economics.
Yet when asked why in the thirties of the last century
Changed some of his positions on economic policy that had been held in advance
His answer was famous
“When the facts change, I change my conclusions.”
What do you do sir?
Translation team translated @autrjim
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