Keynesian Economics

Published: | Updated: May 2, 2017

Definition - What does Keynesian Economics mean?

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

Some view public health insurance as an example of the validity of Keynesian economics.

Insuranceopedia explains Keynesian Economics

Some people hold that public health care validates Keynesian economics because they argue that those who have government sponsored insurance and, as a result, don't have to pay health insurance premiums or out of pocket health care costs will be likely to spend more of their money on other things. In other words, public health care enables increased consumer spending, which, in turn, leads to increased employment and fewer recessions.

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