John Maynard Keynes
Alyssa Savinovich Social Inequality
John Maynard Keynes Social Theory
Although much of his ideas were often misunderstood throughout his life, Keynes offered bright new insights into the nature and origin of financial theories. In his most well known writings, The General Theory of Employment, Interest, and Money, which was published in 1936, Keynes worked to break down the prior ideas of traditional economics and point out its inadequacies, which became obvious during the downturn of the economy. He felt a new approach was needed, and through his work in The General Theory, he sought to bring this transformed stance to light and make sense of the economic crisis that surrounded him. Keynes entire social theory is based upon the concept of human behavior in regards to their money and the expectations of which will always be brought into a future which is uncertain. It was a time of great economic hardship, jobs were scarce and the economy was in a downward spiral, it was then that Keynes took to his efforts in shifting the economic ideas from those of the classical model to one of a more hands on approach. In his book Keynes speaks to three main ideas, the propensity to consume, the state of ones liquidity preference as determing the rate of interest, and the marginal efficiency of capital or the anticipated return on their investment in capital assets. The propensity to consume is one which we use most in our everyday lives and one which involves the least amount of uncertainty. We all use our money to purchase goods for our every day lives, whether it be in the form of food, a car, or perhaps a novel, we all purchase things on a regular basis and though we may not be able to accurately predict the quality of said item we usually have a basic understanding of what it is we are to getting from the transaction and what the results will be. It is this propensity to spend, or consume that we are most familiar with in our
John Maynard Keynes Social Theory
Although much of his ideas were often misunderstood throughout his life, Keynes offered bright new insights into the nature and origin of financial theories. In his most well known writings, The General Theory of Employment, Interest, and Money, which was published in 1936, Keynes worked to break down the prior ideas of traditional economics and point out its inadequacies, which became obvious during the downturn of the economy. He felt a new approach was needed, and through his work in The General Theory, he sought to bring this transformed stance to light and make sense of the economic crisis that surrounded him. Keynes entire social theory is based upon the concept of human behavior in regards to their money and the expectations of which will always be brought into a future which is uncertain. It was a time of great economic hardship, jobs were scarce and the economy was in a downward spiral, it was then that Keynes took to his efforts in shifting the economic ideas from those of the classical model to one of a more hands on approach. In his book Keynes speaks to three main ideas, the propensity to consume, the state of ones liquidity preference as determing the rate of interest, and the marginal efficiency of capital or the anticipated return on their investment in capital assets. The propensity to consume is one which we use most in our everyday lives and one which involves the least amount of uncertainty. We all use our money to purchase goods for our every day lives, whether it be in the form of food, a car, or perhaps a novel, we all purchase things on a regular basis and though we may not be able to accurately predict the quality of said item we usually have a basic understanding of what it is we are to getting from the transaction and what the results will be. It is this propensity to spend, or consume that we are most familiar with in our