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JOHN MAYNARD KEYNES AND THE NEW DEAL December 30, 2007

Posted by thenaturalist in Economic History.
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In 1936, at the height of the Depression, British economist John Maynard Keynes published A General Theory of Employment, Interest, and Money. In this seminal work, Keynes postulated that in times of economic crisis, the “market” alone cannot “naturally” rectify the problem, as orthodox economists long believed. The only way out, he insisted, was government intervention through, among other things, the infusion of money into the economy and programs of redistribution to the people. Keynes provided the theoretical basis for Roosevelt’s New Deal, during which the government funded countless public projects and social programs, including Social Security.

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