Question

Today, in a global recession and pandemic, can Keynes’ views on capitalism and government activism be described as libertarian, institutionalist, or socialist? Why?

Answer 1

John Maynard Keynes wrote " The General theory of Employment, Interest and Money".

Keynes Model has been followed by many countries as it includes increased employment oportunities, stable banking system and variety of tools to monitor the economic input.

So during the time of Pandemic and global recession, Keynes view on Capitalism and Goverment activisim can be described as Socialist view.

1. According to him, if a country enters the phase of recession, unemployment goes up at a very high speed so if the goverment intervenes i.e it aids the public sector as well as private sector financially, the business shall boom in return creating employment opportunities.

2. Looking at the current economic glob argued al slowdown, even major financially countries are experiencing loss at a very great pace, and here the goverment of these countries shall increase their spending so as to control the economic downfall and control inflation by introducing various changes in policies.

So Keynes based on his theory argued that if Goverment increase its expenditures and lowered the rates of taxes, this will help the countries to pull out of depression.