The Keynesian School
Historical Background …show more content…
During The Great Depression unemployment decreased from three to 25 percent, nationally the income of household were nearly cut in half, and and residential construction nearly diminished (Adler, 2016). It was during this time period of despair that John Maynard Keynes (June 5, 1883 - April 21, 1946) wrote a book called General Theory of Employment, Interest, and Money (1936) to provide his own general theory of how the public government would be able to gain full employment. Keynes lived by the model of “in the long run we are all dead”, and he also believed that saving would ruin the economy in the long run. Since unemployment was so high, as well as no flow of income, businesses were hesitant