BBC: Masters of Money, John Maynard Keynes

John Maynard Keynes’ radical ideas changed the world forever. Like him or not, there is no doubt that he deserved his place in Time Magazine’s 100 most influential people of the 20th century. Keynes was an intellectual giant. His spirited intellectual battles with Friedrich von Hayek have defined an era. Indeed, there is no one like Keynes.
BBC’s Stephanie Flanders did a fantastic job in explaining Keynes’ life and workings. Flanders explained how Keynes developed his ideas and the impact his ideas had on the world. With great skill, Flanders was able to give everyone a brief explanation on Keynesian economics.
Keynes was an investor and noticed that markets relied on animal spirits. Markets were inherently unstable and when they got into the doldrums, they tended to stay there. Keynes noticed that this slump would not cure itself. When more people are left unemployed, consumer spending would decrease. This would feed on itself and create ever more negative sentiment in the economy. The country would never see the light of day! Keynes stated that the government must step in and spend in order to aid the populace. As some of this may seem like obvious tonic to the ailing economy, at the time this was radical.
This video is a great watch and allows for much thought on what should be done in Europe or other countries suffering from the financial crisis of 2007. Indeed, you may wonder, if he were still here, who better to ask about the economy than Lord Keynes himself?

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