KEYNESIAN (SOCIALIST) POLICIES

KENEYSIAN POLICIES
From publication of Adam Smith's "The Wealth of Nations" in 1776 and until 1936, the standard economic thinking was that it was best for government to keep its hands off the economy. Recessions might occur but market forces also would end them. Government intervention would only make things worse.

“Fiscal stimulus programs” would not, for example, stimulate. Repeated attempts to lower unemployment with easy money would lead to both high unemployment and high inflation.

Repeated attempts to lower unemployment with easy money would lead to both high unemployment and high inflation.