Keynesian Economics and Deficit Spending with Jacob Clifford

The video introduces Keynesian economics, highlighting John Maynard Keynes' influence on modern economic thought. It explains his challenge to classical economics, focusing on government spending to stimulate the economy. The multiplier effect is detailed, showing how initial spending can lead to increased economic activity. Challenges of implementing fiscal policy, such as debt and the broken window fallacy, are discussed. The video concludes by examining the trade-offs of Keynesian policies, noting their impact during the Great Recession.

What is the broken window fallacy and how does it relate to government spending?

Discuss the trade-offs associated with Keynesian policies during economic crises.