Keynesian Economics is not Socialism


Many conservatives claim liberal policies like government regulation or government spending are the equivalent of socialism. In reality liberals and Democrats are practicing Keynesian economics. Keynes himself was never a socialist and his economic theory is entirely different from socialism. 

Socialism argues government should own the means of production in order to create a more equitable system. Our government does not take over control of the means of production by regulating markets or increasing sending.  On the contrary Keynesian economics argues government involvement is needed when there is systemic failure in a market.  Keynes believed government should only be involved when markets fail or they are not equitable or efficient.  If markets are working properly Keynes is all for the free market.  Government is there to help markets not own them.

So to characterize Keynesian economics as socialism is just a gross misunderstanding of both concepts. 

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One thought on “Keynesian Economics is not Socialism

  1. @AusMMT@ROwens7781 I’d have to say this is the most perfect rebuttal I’ve seen. So, a Job Guarantee (sponsored by the gov’t) shouldn’t be construed as socialism, contrary to #MMT critics.

    Thanks for your insights ajones1021!

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