"The Keynesian revolution, led by Alvin Hansen, Seymour Harris, Abba P. Lerner, and Paul Samuelson, among others, excited the minds of a new generation of economists for several reasons. First, Keynes's middle-of-the-road policies were viewed, not as a threat to free-market capitalism, but as its savior. According to Marxism, which was growing in influence in the 1930s, capitalism was inherently unstable and would be characterized by periodic crises and depressions. Keynes's allegation that government could expand or contract aggregate demand as conditions required seemed to eliminate the apparent cycle in capitalism without eliminating capitalism itself. A laissez-faire policy of economic freedom could be preserved on a microeconomic level. Thus, Keynes changed the dismal science to the optimists' club: man could be the master of his economic destiny."
Quote Details
Added by wikiquote-import-bot
Unverified quote
0 likes
Original Language: English
Available Languages (1)
Sources
Revision History
No revisions have been submitted for this quote.
Categories
Keynesian Revolution
16 quotes on TrueQuotesView all quotes by Keynesian Revolution →
Related Quotes
"There were many ways in which the Keynesian revolution could have developed. It could have extended to core theory an…"
"Work by economists reexamining the so-called Keynes-versus-the-classics debate has led to another debate, one that mi…"
"As was the case with the Keynesian theoretical revolution, the Keynesian policy revolution in the United States did n…"
"The Keynesian Revolution is one of the most remarkable episodes in the entire history of economic thought; certainly …"
"Contrary to what is widely believed, the crucial result of the 'Keynesian Revolution' is the general acceptance of a …"
"Though with its reliance on apparently measurable magnitudes it appears at first more scientific than the older micro…"
"I do not consider the term "Keynesian revolution" appropriate. [...] It seemed to be a more political event than a sc…"
"John Maynard Keynes, late economic adviser to the British Government, is the new prophet of inflationism. The "Keynes…"
"The great economists were harbingers of new ideas. The economic policies they recommended were at variance with the p…"
"I think that Keynes was certainly a good example of a new paradigm. His work is possibly the best example of a case f…"