Chat gpt needs sources. The ai is notoriously unreliable and will tell you what you want to hear.We (National and Labour) use Keynesian economics, all countries do, even the ones you complain about like the US:
From chat GPT:
Keynesian economics is a school of thought developed by British economist John Maynard Keynes, mainly from his 1936 book The General Theory of Employment, Interest, and Money.
At its core, Keynesian economics argues that:
- Free markets don’t always self-correct quickly, especially during recessions.
- Government intervention (through fiscal policy like spending and taxation, and sometimes monetary policy) is needed to stabilize the economy.
- In downturns, governments should spend more (even run deficits) to boost demand, while in booms they should save more or raise taxes to prevent overheating.
Key Features of Keynesian Economics
- Emphasis on aggregate demand as the driver of economic output and employment.
- Support for countercyclical policies (government action opposite to the business cycle).
- Tolerance for government borrowing in recessions.
- Belief that unemployment can persist without government action.
Countries that Use Keynesian Economics
Almost all modern economies use some form of Keynesian policies, especially in recessions, though rarely in a "pure" form (most combine with free-market/neoliberal approaches). Examples:
- United States:
- The New Deal (1930s, Roosevelt) was heavily Keynesian.
- Post-WWII economic management relied on Keynesian principles.
- In 2008–09 (Global Financial Crisis) and 2020 (COVID-19), the U.S. used Keynesian stimulus—massive government spending and relief packages.
- United Kingdom:
- Directly influenced by Keynes himself.
- After WWII, Britain adopted Keynesian demand management policies until the 1970s.
- Recent years (COVID-19 furlough scheme, stimulus spending) show Keynesian influence again.
- European Union:
- Many EU states (Germany, France, Italy, Spain) used large fiscal stimulus in 2008 and 2020.
- The European Central Bank combines this with monetary policy.
- Japan:
- Has run repeated fiscal stimulus programs since the 1990s to fight stagnation (“Abenomics” included Keynesian-style government spending).
- Australia & New Zealand:
- Used stimulus packages during the 2008 crisis and COVID-19.
- Generally follow mixed economies with Keynesian interventions when needed.
- Developing economies(e.g., India, Brazil, South Africa):
- Often use Keynesian tools (infrastructure spending, subsidies, public works) to boost employment and growth.
In short: Most modern economies are “neo-Keynesian” in practice, combining market mechanisms with government intervention when markets fail.
Most of that is complete bullshit.
Especially what you call keynesian. Absolute bollocks.
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