How far keynes contributed in economic ideas in what situation?
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Q) How far keynes contributed in economic ideas in what situation?
Keynes’ biggest “contribution” to economics was to set back economic thinking by 200 years. The old economic thinking before Adam Smith and the old classical economists was mercantilism, which was basically a kind of demand side economics, which served the merchant class better than the consumers. Mercantilism focused on accumulating money as if money itself was wealth. Then the classical economics came along as debunked that kind of thinking, and focused economics on the production of goods, capital investment for the sake of that production, and how the price mechanism directed that investment towards pleasing consumers.
Then Keynes brought back the old idea that money itself was what is important. His theories were all about where the money goes, increasing the quantity of money spent in the economy. This again serves the rich, people who have something to sell at the expense of the consumers.
The irony is that modern Keynesian economists complain about the inequality of incomes in our present economy, even though their ideas serve to increase that inequality by increasing consumer prices and channeling more of the money to the rich.