How does supply-side economics differ from Keynesian economics?

Question

please give full answer

Answer 1

John Maynard Keynes developed his theories during the Great Depression. He was not taken seriously until Roosevelt used his theories but corrupted them to put us in debt. Reagan did the same thing, put us in debt. Bush is doing the same, putting us in debt.
Keynes did NOT say we should borrow endlessly. He said we should borrow until we have surpluses and then pay off the debt.

Answer 2

Supply - side economics is a school of macroeconomic thought which emphasizes the "supply" part of supply and demand. The central concept of supply-side economics is Say's Law: "supply creates its own demand," the idea that one must sell before one can afford to buy.

http://en.wikipedia.org/wiki/Supply-side_economics

Keynesian economics promotes a mixed economy, where both the state and the private sector play an important role. Keynesian economics differs markedly from laissez-faire economics (economic theory based on the belief that markets and the private sector operate well on their own, without state intervention).

http://en.wikipedia.org/wiki/Keynesian_economics

Answer 3

i'm undecided what you advise via grant area economics. i don't think of that's a real term or a term specific adequate in tutorial economics. this is because of the fact the term grew to become into politicized in the 1980's, and lost its credibility whilst the political result grew to become into purely relief in earnings taxes that had no grant result. a extra physically powerful term could be 'genuine' - case in point 'genuine corporation cycles'. In those fashions, the belief is that brokers react to differences in funds so as that there are not any substantial impacts to differences in funds or expenditures on genuine variables like output and employment. The 'Macro economists' till now Keynes concept that grant grew to become into fixed in the fast run, and recessions and expansions have been delivered approximately with the aid of some style of sticky wages or expenditures (or another unexplained phenomena). Keynes reported no, it had not something to do with interest fee however the reality that persons formed behavior of low-priced rates and investment that differed from one yet another, and subsequently earnings adjusted between those 2 gadgets of predicted habit. yet, no person would desire to truly understand him, so they reverted back to the sticky cost fashions and called that 'Keynesian'. genuine corporation cycle adherents have faith that that's irrational for persons to maintain sticky expenditures in the face of industry adjustment, so as that particularly technologies or another grant aspects are changing to describe macroeconomic differences. So the version is that RBC human beings could say that persons purely do not variety behavior of intake and investment, and in the event that they did, they could harm those behavior and the industry could then alter and there is not any unemployment. the venture with RBC fashions is that don't clarify why there are combination fluctuations - of their concept each and every thing would desire to be randomly uniform, whilst surely the economic gadget is going in and out of recessions and expansions. the only thank you to get the style of bring about RBC fashions is to easily anticipate that technologies reacts that way, yet that style of advert hoc.