POLS 1090 Lecture Notes - Lecture 3: Keynesian Economics, Aggregate Demand

• School: York University
• Department: Political Science
• Course: POLS 1090
• Professor: Henry Bartel

Document Summary

Keynesianism developed of the notion of the aggregate demand. Parts of aggregate demand: consumption, business investments, net exports, government spendings. None of these parts were growing in the 1930s. The way to solve the problem of mass unemployment is to use government spending to boost aggregate demand. Bureaucracy, parliament, house of commons, majesty of the queen, After the second world war keynesianism economics came to be excepted in advanced capitalist economies in america canada western europe and japan. The second world war had a deep impact in leading to keynesianism. Readings states why more reasons found in readings. The same set of forces that supported keynesianism also supported the welfare state and collective bargaining. People became fearful as the war reached its conclusion that there would be a return to depression: this fuelled support for keynesianism because measure could be taken by the state to avoid a downward spiral.