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John Maynard Keynes
- British economist
- Theorist
- Governments should spend their way out of the depression (John's theory)
- Borrow money to be repair after economy recovers
- Deficit financing
- Projects should be of value to the country
- Went against adam smiths theories (thought you should never go into deficit)
- this works until a crisis hits
- USA, Japan and Hitler's Germany all use John's theory with success !
Summary
This british theorist came up with the idea that to get the economy going you have to spend money to make money (spend your way out of the depression). This is how the US got out of the great depression as well as Japan and Germany.