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Keynesian Economics

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Submitted By skrdlant5
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Keynesian Economics, Helping the US Economy
Keynesian philosophy states that in order to manage economic downturns, government intervention in the economy is imperative. It was Keynesian Economic Philosophy that kept America out of another depression during the Great Recession due to the fiscal and monetary stimulus (Seidman 32-53, 22p). By examining the government’s need for spending money on welfare, cutting taxes, regulating and monitoring the financial markets, and government spending on military, America sees how a Keynesian approach is a necessity. The American Government needs to continue using the Keynesian model in order to enhance the performance of the economy. Keynesian Philosophy provides government assisted programs to those who qualify. One form of assistance is Welfare. Welfare provides benefits and economic assistance to low or no income Americans. With the dismal economy, there are now over 100 million people on welfare according to the Census Bureau; and this doesn’t include those receiving Social Security or Medicare (GOPUSAStaff). Food Stamps are one of many divisions of welfare. The food stamps program, also known as the Supplementary Nutrition Assistance Program (SNAP), helps low or no income citizens buy food. There are over 46 million people on SNAP as of June, 2012 (Luhby). That is more than one in seven Americans and more than 25% of eligible Americans do not participate in the food stamps program. There are millions of low-income seniors struggling to afford food and medicine. “Enrolling in SNAP can help ease that struggle,” said Stacy Dean, vice president for food assistance policy at the left-learning Center in Budget and Policy Priorities (Luhby). Local stores that accept food stamps, helps bring Federal dollars into those communities benefiting the economy. In addition, Keynesian economics believes inadequate spending, from both…...

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