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Moderate Liberalism According to Keynes

In recent years, the name of a very important English theorist, John Keynes, resonates among Argentine economists.
History
Historia-52
12 January, 2020

John Maynard Keynes was an important English economist who died in 1946. However, his thinking would reappear several times in recent history, after the doubts that have arisen in theliberal economic system of Western countries .

Certain fissures present in this vision led some economists to turn to something Keynes called the Benefactor StateYeah. What was it and what was it for ?

His position was based on the application of protectionist policies within societies that do not were. The aim of such a strange mixture would be to be found in the regulation of the operation of the State for benefit people. Beyond whether or not to agree with him, the truth is that the ideological framework that ended building, would end up mastering important recovery processes economic around almost everyone. Many politicians revived their ideas, used them, exceeded their use and even there were who ended up condemning them.

“ The market is not regulated by itself,”Keynessaid, “but it needs the State intervention generating income redistribution policies, benefits and unemployment insurance”.

The post-Crack recovery of Wall Street in 1929 clearly translates into the figure of the so-called Welfare State developed precisely by Keynes .

Wall Street Crack in 1929.Wall-Street

Although what happens in another hemisphere may sound alien to local thinking, the truth is that many economists emerged from both radicalism and the Peronism, in their own way and time, applied and still observe many of the formulas born from the basic conception of the welfare state. That is why we often hear that this or that economist applies certain measures because technically he is “Keynesian”.

The perspective of these practical, it would seem simple at first glance. Expanding rights to the salary of the inhabitants of a country, it is possible to increase the consumption. Consequently, it is also feasible to generate an offer proportional to the wage recomposition (*).

Always within the group of academics close to protectionist currents, Keynes also recommended the application of extensive policies that (a) in turn encourage the work.

Such practices would increase expectations about the Theory of the Present State , extending into such important sectors as the education, health, security, infrastructure andservices . Moreover, all these aspects of social life would also be the rights of individuals. Railways, for example, bring losses all over the world, but they are necessary . That is why Keynes argued that the economy is not regulated spontaneously, but also requires some kind of intervention (**) .

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