Keynesian and Supply Side

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Shannon Green
Mr. Schnabel - Economics
May 13, 2013
Economics

From the start of time currency as always been a problem. In the world that we live in, it’s not hard to believe that money rules the world and people. Even scholars believe that money is a prime control of how people today live. The endless debate of this opinion has continued for years and it has affected numerous of people in many ways. There are two-view point Keynesian and the Supply Side points that are involved. Our countries economy is one of the most important in the world due to our massive trading system and need for foreign goods. The important question is “How much our government should be involved within our economy?” and “How much involvement should we the people allow?” It is surly evident that the economy as a whole needs a referee to control and set rules for a healthy and stable economy for tomorrow. The founder of Keynesian economic theory was John Maynard Keynes. The theory is based on the concept that in order for an economy to grow and be stable, active government intervention is required. Also that monetary policy is the best method of ensuring economic growth and stability. The Keynesian Economic viewpoint differs from the supply-side economic views in many different ways. Keynesian’s state when spending increases, the economy increases a direct correlation between the two creates a balance. Keynesians also believe that with government spending the economy will benefit from the spending. The involvement of the government in the economy will over all increase our economic standing. A supporter of Keynesian economics believes it is the government's job to smooth out the bumps in business cycle. In addition, the supply side view is very different. The theory behind the supply side view is that the reducing percentage of tax rates for wealthy individual’s increases savings and investments, which in the end benefit everyone. This also benefits the economy by...
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