It was called "Utility of Poverty" and pointed out the positives of poverty if one were rich. For example, if prices dropped 15% it was if the wealthy got a 15% raise in income. With money people could buy up property and wait. Poverty was indeed a money maker for the rich. And at one time the conservatives pressured the government to fight poverty by reducing taxes and balancing the budget, and then FDR came along with his New Deal and Keynes..
Continuing ....
Keynes was far more optimistic about capitalism than Marx. He believed that it was categorically the best system of exchange, and, moreover, that it got incentives right in ways that the collective ownership of production simply did not. What distinguishes Keynes was that he saw a role for government on the demand side.
He started from a reasonable premise: when consumers stop spending (for whatever reason), business usually suffers (if demand falls below a certain level). You get this right? When people stop buying shoes, the shoe store owner has to layoff his employees. And when this happens, the shoe store employees can't go into the bakery, which bakery then has to layoff its employees, which employees then can't go to the movie theater, which theater must then layoff its employees. It can turn into a self-reinforcing spiral of layoffs that can cause terrible long term damage to the economy.
Keynes thought that the government could intervene by - for instance - putting people to work building, say, infrastructure. See the multiplier effect of the interstate system or the satellite system or water/energy grids. These gubmint jobs not only represent commercially beneficial investments, but they put spenders back on main street and stem the spiraling layoffs before they engulf a generation of workers. Keynes also believed - if you've read The General Theory of Employment - that tax cuts were absolutely essential to countering recessionary pressures. But then, once the spiraling layoffs stopped and people were spending again, the government should go back into austerity mode.
Of course, as you know all too well, the government never goes back into austerity mode. Big Brother gets big headed or corrupt or stupid, and it keeps pouring money into the economy, which leads to inflation and terrible debt.
Now, granted, the followers of Keynes tolerated some inflation/debt
provided that employment stayed high. They saw this as a reasonable tradeoff - and the tradeoff worked, for the most part, from 1945-1973 when the Fed used Keynesian fiscal policy to maintain what it considered full employment. But there was a flaw, and Milton Friedman analyzed it brilliantly. He said there was no l
ong term trade-off between, that is, Government could not permanently trade higher inflation for lower unemployment. And stagflation - which was accelerated by the energy crisis - proved uncle Milty right.
The reason I bring this up is because Keynes' followers were irresponsible with his ideas. Take Reagan for instance. Compare his spending/debt and the size of his federal workforce to Carter's. And don't blame the House because Carter and Tip (two Democrats) spent nothing compared to Reagan and Tip. We won't even talk about Bush 43's spending compared to Clinton's.
Point is: the Reagan Revolution, for all its bluster about small government and responsible fiscal policy, was completely full of shit. Reagan tripled Carter's federal workforce and debt. Granted, it was mostly in Defense, and it definitely put more spenders on Main Streets across America, especially in defense heavy places like San Diego and Orange counties (both of which saw amazing economic growth in the 80s) - but ... by the time the dust settled, the nation was deeply in debt. The spending went too far, and Bush 43, once he had a red Senate and House, went into spending lunacy.
So indeed, the Democrats are Keynesians, but nobody in my lifetime has followed Keynes more crudely and disastrously than the Right. They spend mindlessly. Remember Bush's initial version of TARP (before Obama came in)? It gave the Banks money but with zero controls or oversight. And FOX didn't cover it, so their audience didn't understand what the party bosses were doing. We know the Dems spend like drunken sailors. They admit it. So/but why do the Republicans always spend more? Why do they only support anti-Keynesian fiscal policy when they are out of the White House?