Keynesianism Economics – Government Spending Yields Little Demand

John Maynard Keynes sitting in chair with book
John Maynard Keynes says when an economy is in recession or depression, the government should inject money into the economic system. Spend money to boost the economy, however this does little to generate demand when the citizens of a country is strapped financially.

It is even worse to print more money and inject the money into the economy, when the government itself is heavy indebted, like the U.S government with now federal debt approaching 16 Trillion dollars.

All it does is inflate assets such as the stock market, which is what the U.S government has been doing to prop up the illusion that all is well in the U.S economy. Hey, look the stock market is up….uh uhm because we injected trillions of dollars into it to make it hit all time highs.

I say give John Maynard Keynes that boot, this continuous government debt bubble and asset inflation with printed money is gonna come crashing down like a house of cards.

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