• British economist John Maynard Keynes is the founder of Keynesian economic theory.

  • Keynesian economics claims that demand determines supply and that a healthy economy spends or invests more than it saves.
  • In order to create jobs and increase the purchasing power of consumers during a recession, Keynes believed that governments should increase spending, even if it means going into debt.
  • Critics attack Keynesian economics for encouraging deficit spending, stifling private investment, and driving inflation.