The economic theory that emphasizes government spending to stimulate demand during downturns is primarily associated with which economist?

The economic theory that emphasizes government spending to stimulate demand during economic downturns is primarily associated with John Maynard Keynes. Keynes advocated for increased government intervention in the economy, especially during periods of recession, to encourage demand and reduce unemployment. His ideas, which emerged during the Great Depression, highlight the importance of fiscal policy—specifically, the use of government spending and tax policies to influence overall economic activity.

Keynes believed that during a downturn, private sector demand often falls short of what is needed for full employment, leading to prolonged economic slumps. To counteract this, he proposed that governments should take on a larger role, using public spending to create jobs and spur consumption, which would ultimately lead to recovery and economic growth.

This approach contrasts sharply with other economic philosophies, such as those associated with Milton Friedman, who emphasized the role of monetary policy and market forces rather than government intervention. Similarly, Thomas Malthus focused more on population growth and its effects on resources, while the Austrian School of economics advocates for minimal government involvement in the economy. Therefore, John Maynard Keynes is the key figure behind the theory of using government spending to stimulate demand during economic downturns.