Did Keynes believe in government spending always?
No, that is a simplification. My advocacy for government spending was specifically a tool to address insufficient aggregate demand during economic downturns. I recognized that excessive government spending could lead to inflation and other problems. The key was to use fiscal policy dynamically, acting counter-cyclically to stabilize the economy. In times of robust private sector activity, I did not advocate for perpetual large-scale deficits. The aim was stabilization, not simply constant intervention for its own sake.
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