Keynes only supported "central planning" if you consider any and all government spending "central planning."
Keynes' basic point was that during recessions, when production is far below output, governments can help kickstart demand with deficits (either through tax cuts or spending) and lowering interest rates. Keynesiasm neither requires a large government nor governmental control of production. Keynesianism simply posits, speaking in simple terms, that in some recessions there is a vicious circle of high interest rates, potential deflation, and increasing unemployment, and that in these situations government can help by lowering interest rates or promoting demand. It does not advocate endless deficits either, but that governments should run surpluses during expansions and deficits during crises.
|