In Intricate Detail, Compare and Contrast Keynesian Economics with Supply-Side

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The Answer is Keynesian economics is predicated on the theory and work of British economist John Maynard Keynes. It stipulates that government officials should use economic policy, like taxing and spending, to maintain stability in the economy. Keynes's theory had a significant impact on President Franklin Roosevelt (1933-1945) and his New Deal policies. To Keynes, it was acceptable to run budget deficits in order to increase employment and national income to provide a short-term boost to the economy. Unlike classical economic theorists, Keynes contended that the national government could create policies to stimulate the economy, and this was more viable than waiting for the free market to resurrect the domestic economy in times of duress. Ronald Reagan (1981-1989) rejected Keynesian economics in favor of supply-side economics, a theory touted by Milton Friedman and others who believed that lower taxes would stimulate the economy by encouraging people to save, invest, and produce more goods and services. This was the intellectual justification of trickle-down economics, where supply-siders believe that targeted tax cuts to the wealthy will trickle down to the middle and working classes in the form of more jobs and economic growth so that all citizens experience economic prosperity. This debate remains contentious in the early twenty-first century.

In Intricate Detail, Compare and Contrast Keynesian Economics with Supply-Side

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