Keynesian Economics and The Welfare State
By Alvaro J. de Regil
The author explains in detail the emergence of the new Keynesian economic paradigm as a consequence of the experience of the Great War and the Great Depression and the results obtained through government intervention during the New Deal.
The goal here is to show how the post-war era, with the government in the driver's seat of the economy, provided the greatest period of progress in the welfare of both rich and poor nations, in spite of the very powerful interests that continuously moved in the opposite direction. The essay opens by stating that the war economy pulled the capitalist world out of depression.
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