While the Great Depression was raging in the Thirties, Keynes called for the government to step in to be the BIG SPENDER of the last resort
He argued the Government could borrow money from all those people who were sitting on their BIG savings and then it could start mass campaigns of employment: for example: building bridges, hospitals, new roads or new school. This spending program would create jobs, improve confidence, inject money in the system (because people would start spending more money) and stave off the monster of deflation and mass unemployment
For Keynes, the main thing was increasing demand
What do you think?

	Created by cecilia valente over 4 years ago

this is part of Money Factor, A Kid's Guide to Money and Finance www.ooberkidsrepublic.com