Keynesian Economics

What Does Keynesian Economics Mean?

Keynesian economics is an economic theory first proposed by John Maynard Keynes in the 1930s. Its central tenet is that the strategic use of government spending can increase employment and reduce economic recessions.

Some consider public health insurance to be an example of the validity of Keynesian economics.

Insuranceopedia Explains Keynesian Economics

Some people argue that public health care validates Keynesian economics because they believe that individuals with government-sponsored insurance, who no longer have to pay health insurance premiums or out-of-pocket health care costs, are more likely to spend a larger portion of their income on other goods and services. In other words, public health care boosts consumer spending, which, in turn, leads to higher employment and fewer economic recessions.