Comparing Keynesian Economics and Supply Side Economic Theories :: Economy

Comparing Keynesian Economics and return Side Economic Theories Two controversial scotch policies are Keynesian economics and Supply Side economics. They represent polar sides of the economic policy spectrum and were introduced at opposite ends of the 20th century, yet fluent are the most famous for their effects onthe miserliness of the united States when they were used. The founder of Keynesian economic theory was John Maynard Keynes. He do many great accomplishments during his time and probably his greatest was what he did for the States in its hour of need. During the 1920s, the U.S. experienced a stock market disrupt of enormous proportions which crippled the economy for years. Keynesknew that to recover as soon as possible, the government had tointervene and put a decrease on taxes along with an increase inspending. By putting more money into the economy and allowingmore Americans 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 not a socialist, he just wanted to make surethat the tidy sum had enough money to invest and second the economyalong. As out-of-the-way(prenominal) as stressing extremes, Keynesian economics pushed for a happy medium where take and prices are constant, and there is no surplus in supply, but in like manner no deficit. Supply Side economics emphasized the supply of goods and services. Supply Side economics supports higher 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, withal known as Reganomics, was initiated during the Regan administration.