1. After his death, almost all capitalist governments adopted parts of his ideals
1.1. U.S
1.2. Canada
1.3. Great Britain
2. Increase government spending, similar to during a recession
2.1. More government spending increases demand and production, resulting in higher employment rates
3. Slow Economy (Recession)
3.1. Lower Taxes
3.2. More Government Spending
3.3. Deficit
4. Fiscal Policies
5. Important People
5.1. Demand side governments believe heavy involvement in economy is the best way to fix unemployment
5.1.1. Tax cuts
5.1.1.1. Provide buyers with more money to spend, increasing demand and employment
5.2. John Maynard Keynes
5.2.1. Challenged free market ideas
5.2.1.1. Said that demand controlled employment
5.2.1.2. Less demand, more unemployment
5.2.2. Argued for more state involvement
5.2.2.1. State involvement would help moderate boom and bust
6. Dealing With Unemployment
7. Fast Economy (Recovery)
7.1. Higher Taxes
7.2. Less Government Spending
7.3. Budget Surplus
8. Dealing With Recession
8.1. Concentrate on total spending in economy
8.2. When anyone spends, it creates demand
8.2.1. Government spends more money, increasing demand
8.2.1.1. Build roads, demand for materials and workers
8.2.1.2. Invests in companies, those companies increase employment
8.2.1.2.1. Increased employment, demand, and spending leads to a growing economy, continuing the cycle, and leading back to inflation
8.2.1.3. As govt. spends more money, so does everyone else
9. Dealing With Inflation
9.1. Rising Prices of Goods, if it gets too bad, spending slows down
9.2. Demand side governments will involve themselves heavily in the economy to try and rectify inflation
9.2.1. Government earns more than it spends
9.2.2. Government will run a budget surplus
9.2.2.1. Government increases taxes to increase earning
9.2.2.1.1. Income Tax
9.2.2.2. Government reduces spending
9.2.2.2.1. Less projects like roads, schools, etc.
9.2.2.2.2. Less investment in corporations
9.2.2.2.3. This, eventually results in less spending, less demand, and higher unemployment rates