JOHN MAYNARD KEYNES By Megan Suckut and Ryan Keehr

Facts about Keynes He was born June 5 th, 1883 in Cambridge. His father was an Economics lecturer at Cambridge University, and his mother was one of the first female graduates of Cambridge. He started to attend college at Eton in 1897, and was one of the most brilliant students there. He won the Junior and Senior Mathematical Prizes at Eton. One of his first jobs was in the Revenue, Statistics and Commerce Department of the India Office. He lectured at Cambridge University.

During Keynes’ Times World War I and the Versailles Peace Conference –Keynes held a key position at the center of the inter-allied economic effort. He influenced the financing of the war, but was against the harsh reparations inflicted upon Germany. Russian Revolution –Keynes supported the revolution. 1920s –Keynes argued against a return to the gold standard. Rise of Hitler –He attributed this to the reparations Germany had to pay, which put the country in debt. World War II –He argued that the war should be paid for by higher taxation and compulsory saving, rather than by deficit spending.

Keynesian Economics Claim to fame: his idea that the government should keep the economy at equilibrium through official action Unemployment and recessions come from people not spending enough money The government must not save money during a depression, but should spend money to keep the money flowing.

Good economies have contributions from both public and private sectors. Did not agree with Adam Smith’s laissez- faire ideas. “For the engine which drives Enterprise is not Thrift, but Profit.” – John Maynard Keynes

Keynesian Economics

School of Economic Thought Keynes’ economic ideas formed the basis for the Keynesian School of Economic Thought. This category represents economists who believe the government needs to stabilize output over the business cycle in order to make the best decisions possible.

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