Keynes is one of the most famous economists in the 20th century, and his economic thoughts have had a profound impact on modern economics. The following are the main economic thoughts of Keynes: The necessity of government intervention in the economy. Keynes believed that there were problems such as unemployment and economic imbalance in a market economy, and the government could stimulate economic growth by increasing public spending and reducing taxes, thereby solving these problems. He advocated that the government should play a more active role in the economy, influencing economic operation through fiscal policy and monetary policy.

Theory of insufficient effective demand. Keynes proposed the theory of insufficient effective demand, arguing that the growth of consumption and investment depends on the level of aggregate demand. When aggregate demand is insufficient, the economy will fall into recession, leading to problems such as unemployment and economic imbalance. Therefore, the government should take measures to expand effective demand, such as increasing public spending and tax cuts.

Principle of diminishing marginal utility. Keynes also proposed the principle of diminishing marginal utility, which states that as consumption increases, the satisfaction brought by each unit of consumption gradually decreases. This principle shows that people need more income to maintain the same level of living. Therefore, the government should take measures to increase people's income level to promote consumption and economic growth.

Theory of wage stickiness. Keynes also proposed the theory of wage stickiness, which holds that workers' wages are often controlled by employers and are difficult to adjust immediately. This theory shows that even in economic recession, it is difficult for workers to immediately reduce their wages or become unemployed. Therefore, the government should take measures to stabilize wage levels to mitigate the impact of unemployment and economic imbalance.

In summary, the main economic thoughts of Keynes include the necessity of government intervention in the economy, the theory of insufficient effective demand, the principle of diminishing marginal utility, and the theory of wage stickiness. These thoughts have had a profound impact on the development of modern economics and have been widely applied in practice.

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