What is the role of the government according to John Maynard Keynes?

Answer 1

According to John Maynard Keynes, the government's role is to actively manage the economy, particularly during periods of economic downturns. He advocated for fiscal policies, such as increased government spending and tax cuts, to stimulate demand and boost employment. Keynes believed that in times of recession, private sector spending may not be sufficient to drive economic recovery, thus necessitating government intervention to stabilize and promote growth. Ultimately, he emphasized the importance of a proactive government in mitigating the effects of economic fluctuations.