Economic Theories and The Great Depression
John Maynard Keynes proposed a theory that is called the Keynesian Economic Theory. Keynes blamed the Stock Market Crash of 1929, which led to the Great Depression, on several vital factors. However, Keynes failed to consider that people could not go forward using his method of keeping the United States out of the Great Depression. This article will examine his economic theory and how it would fail to work during this period. Keynes would blame the Stock Market Crash of 1929 and the Great Depression that followed on several things. First, he would blame the lack of spending by households, businesses, and the United States government as the reason the Stock Market Crash became the Great Depression. According to Keynes, the lack of spending means that a person is saving rather than putting their money back into the market due to that person's understanding of the needs of themselves and their families (2022. p. 129). Yet, the Stock Market Crash of 1929 and the years that emanated aft