Question

1) Do you believe the federal government follows the Keynesian economic way of things?

The reason I ask is because there is federal involvement with the market and making sure that it is controlled, which to my understanding is what Keynesian economists believed is what helped the market.
2) Would you agree or disagree with this?

If you use any resources in your answer, can you please cite them for me?

Thank you very much for your time and effort.

Answer 1

1.

I strongly believe that the federal government follows the Keynesian way of economic approach, because it implements discretionary fiscal policies on a regular basis. It is proved when the government implemented an extensive $787 Billion package for the recovery of the economy after the financial crisis of 2008. Here, the government increased spending as well as gave some tax based relief to help the economy get a boost. After few years of extensive Keynesian approach, the economy recovered and functioning with the normal growth rate in the last few years. Tax reform done by Trump administration is another example of Keynesian approach, to be followed by the government.

2.

I slightly disagree with it, because government has intervened to help the market recover and function on its own, rather to control the market. So, the government has no intention to control the market, because it will be discouraging to the private players. Here, the government wants to be in the role of a moderator, who will regulate the market to make it free and fair for all with acts like Sherman Act and Clayton Act to prevent anti-competitive practices. Keynesian approach never says to control the market.