Comparing Keynesian Economics and Supply Side Economic Theories :: Economy

Comparing Keynesian Economics and Supply emplacement Economic Theories Two controversial scotch policies are Keynesian economic science and Supply incline political economy. They represent opposite sides of the economic policy spectrum and were introduced at opposite ends of the 20th century, yet still are the most storied for their effects onthe frugality of the United States when they were used. The founder of Keynesian economic possibility was John Maynard Keynes. He made many great accomplishments during his beat and probably his greatest was what he did for America in its hour of need. During the 1920s, the U.S. experient a stock market crash of enormous proportions which crippled the sparing for years. Keynesknew that to recover as soon as possible, the government had tointervene and plant a decrease on taxes along with an increase inspending. By putting more money into the economy and allowingmore Americ ans to keep what they earned, the economy soonrecovered and once again became prosperous. Keynes ideas werevery radical at the time, and Keynes was called a socialist indisguise. Keynes was non a socialist, he scantily wanted to make surethat the people had enough money to institutionalize and help the economyalong. As far as stressing extremes, Keynesian economics pushed for a happy medium where output and prices are constant, and there is no surplus in supply, but also no deficit. Supply Side economics emphasized the supply of goods and services. Supply Side economics supports high taxes and less government spending to help economy. Unfortunately, the Supply Side theory was applied in excess duringa period in which it was not completely necessary. The Supply Side theory, also known as Reganomics, was initiated during the Regan administration.