What economic philosophy did Keynesian economics promote?

Keynesian economics promotes the idea that, especially during times of economic downturn, government intervention is necessary to stimulate demand and pull the economy out of recession. This is primarily achieved through deficit spending, meaning that the government should increase its expenditures and take on debt in order to boost economic activity. The rationale behind this approach is that when the economy is sluggish, consumer spending declines, leading to reduced business investment and a vicious cycle of economic contraction.

By engaging in deficit spending, the government can inject money into the economy through public works, payments, and other expenditures, thereby creating jobs and increasing overall demand for goods and services. This increase in demand can help revive economic activity and employment levels, ultimately helping to stabilize and grow the economy in the long run.

This concept contrasts sharply with strictly balanced budget approaches, which might constrict spending during depressions and exacerbate economic downturns. Instead, Keynesian economics advocates for a proactive fiscal policy to manage economic cycles, emphasizing the crucial role of government spending to maintain full employment and promote economic growth.