Throughout the history of economics, there have been many experts and professors whose ideas and theories have fundamentally affected our thoughts and practices, but none has been as influential on this subject as John Maynard Keynes. He was a British economist who revolutionized economic thinking and to this day his work continues to be appreciated and utilized by many into what is known as “Keynesian Economics.”
John Maynard Keynes was an Englishman born in 1883, who went on to become one of the most influential economists of the twentieth century. We know this economist best for Keynesian economics which is described as the economies success is predicated on aggregate demand, meaning that there is complete spending in the economy in order to increase employment and decrease inflation as more money is circulated in the economy. Many of Keynes ideas have been expanded upon by other by modern day economists. They use Keynes ideas to expand, critique and help to initiate economic studies into today’s world. Keynesian economics is described “as a sort of yardstick that can define virtually all economists who came after him”. (Keynes, 2008)
In this study of John Maynard Keynes, we will be able to see how he contributed to current management practices and more specifically how he had a hand in influencing the field of economics. With this exploration of John Maynard Keynes, we will see how he influenced the world of economics and how he helped to develop the economy in one of its most prosperous times. While Keynes was becoming a great economist and helping to reshape the views of other economists, Britain itself was going through hard times and that brought about many changes in Keynes’s ideas.
In the words of economist Paul Davidson, he states that he believes Keynes “was a man whose efforts enabled the possibilities for democracy and a civilized society to flourish on our planet”. (Kaplan, 2010) He added, “Keynes’s policy prescriptions were followed by post–World War II governments to develop prosperous economic conditions. The result was an era of historically unprecedented real economic growth that lasted for a quarter of a century – from the end of World War II until the early 1970s.” (Kaplan, 2010) From these statements by a respected economist, it is easy to see that Keynes had a significant influence on the way economics is practiced.
On the other hand, Robert Skidelsky, another British economist, seems to have a different view on Keynes’ work and the view of the economy. Skidelsky states that in today’s economic climate “Reforms should not be pressed prematurely, because they may cut off recovery by denting business confidence, and they should follow a deep, not superficial, attempt at understanding what went wrong.” (Skidelsky, 2009) He also stated “Keynes was very clear about this in the early 1930s. It might even be necessary to have a ‘conservative’ budget, he told a Swedish correspondent, if that would help to get lower long-term...