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Modern Economic Theories-

Two controversial economic policies are Keynesian economics

and Supply Side economics. They represent opposite sides of the

economic policy spectrum and were introduced at opposite ends of the

20th century, yet still are the most famous for their effects on the

economy of the United States when they were used.

The founder of Keynesian economic theory was John Maynard

Keynes. He made many great accomplishments during his time and

probably his greatest was what he did for America in its hour of need.

During the 1920's, the U.S. experienced a stock market crash of

enormous proportions which crippled the economy for years. Keynes knew

that to recover as soon as possible, the government had to intervene

and put a decrease on taxes along with an


The Supply Side theory, also known as Reganomics, was

those or any economic theory is based on the time at which it is

supports higher taxes and less government spending to help economy.

able to repay Keynes for the economic assistance in recovering from

became prosperous. Keynes ideas were very radical at the time, and

little incentive to work if even more was going to be taxed. People

well matched theories, but it was the time of use that made them good

Unfortunately, the Supply Side theory was applied in excess during a

much protection of business by the government which was inefficient

"happy medium" where output and prices are constant, and there is no

putting more money into the economy and allowing more Americans to

and bad. Keynes' theory was u

Some common words found in the essay are:
Maynard Keynes, Unfortunately Supply, Supply Keynes', Economic Theories-, supply theory, supply economics, economic theory, help economy, keynesian economics,
Approximate Word count = 536
Approximate Pages = 2 (250 words per page double spaced)


  

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