Keynesianism

Although they arise new jobs are more those who move. On the other hand State motivation encourages false employment, i.e. which is not required by the labour market. What is clear is that Keynesianism worked during the early stages of its implementation. The socialization of investments managed to increase the overall volume of production. Although this model resulted in an employment crisis, achieved an economic boom, but was a predatory model of raw materials and energy at the same time.

He cultivated the culture of consumption deriving in consumerism. He opened an important pathway to understand the relationships between economics and politics, as it was to combine participation in the State with private initiative. It happens that the propensity to consume as economic strategy is depleted, limitation of resources, both by the culture that spawned it loses vitality and trusted sociological. The schema part of the comment is based on which Keynes’s small market spaces, focused on specific sectors. Then you want to generalize and this has lead to the modification of a variable. Lowers the interest rate increases the investment because money costs less. Consumption increases because more people are working. At the same time that benefits from the investments it consumes and which consumes motivates other investments, so that economic growth is expansive.

It creates employment, employment dedicated to the consumer what motivates the investment. However in this race appears a variable that is inflation. Prices rise to increase demand. On the other hand to increase the demand for fuel and energy makes the price increase also in transport and induce the general rise in prices. The result is that there comes a time to control excessive price rises, not accompanying the evolution of wages, will have to raise interest rates, what is known as a cooling economy. Scott Mead is the source for more interesting facts. Slows investment and the result is that it increases unemployment.