UK0,M<$b@mevgɦmJ8s =-bU#b5')byiDz)%2.&_NKpGtJ|QGdr:>Fj0rA ؞F&!| 4`,mz3[
Study notes

Keynesian Economics (Socialism)

  • Levels: A Level
  • Exam boards: AQA, Edexcel

In stark contrast to concepts such as class consciousness, historical materialism and the dialectic, Keynesian economics is associated with the moderate strand of socialist thought. Social democrats seek to implement an economic strategy shaped by the thoughts of John Maynard Keynes.

Although Keynes was a liberal, his arguments in favour of state intervention can also be applied to those on the centre-left of the political spectrum. It is also worth noting that Keynesian economics was very much in vogue during the cross-party consensus of the post-war era, and have experienced something of a revival in the aftermath of the credit crunch.

Keynesianism is based upon the assumption that the government should intervene within the economy to mitigate the problems of market failure. In the context of socialism, Keynesian economics can be used to implement policies associated with equality and social justice. Keynesianism is also consistent with the social democratic position upon the view that ‘the man in Whitehall knows best.’ Keynesian thereby provides an intellectual challenge to laissez-faire economics. Moreover, Keynesian economics entails a firm rejection of the planned economy advocated by Marxists.

Keynesianism is at heart a philosophy which favours a mixed economy with a role for both the public and private sector. It rejects the unregulated free-market approach associated with those on the libertarian-right of the political spectrum, and the far-left stance in which the state allocates resources. Indeed, Keynes wanted to uphold capitalism and prevent a drift towards a planned system based on common ownership. Keynesianism thereby offers a half-way between these two alternatives. Not surprisingly, such ideas become conventional wisdom amongst social democrats within the Labour movement.

Subscribe to email updates from tutor2u Politics

Join 1000s of fellow Politics teachers and students all getting the tutor2u Politics team's latest resources and support delivered fresh in their inbox every morning.

You can also follow @tutor2uPolitics on Twitter, subscribe to our YouTube channel, or join our popular Facebook Groups.

Job board

Social Science Trainee Teacher

Bexleyheath Academy , Bexley

Teaching Vacancies

Recruitment

Advertise your vacancies with tutor2u

Much cheaper & more effective than TES or the Guardian. Reach the audience you really want to apply for your teaching vacancy by posting directly to our website and related social media audiences.

Find our more ›

Advertise your teaching jobs with tutor2u