How Was the Keynesian School Valid, Useful, or Correct in Its Time? Solution Keynes made his mark in history—as Marx made his. But while Marx wanted to destroy capitalism, Keynes wanted merely to reform it. Both wanted to enlist, and really to unleash, the power of the state, although where Marx spoke of \"the liquidation of the capitalists\" Keynes spoke of the \"liquidation of the rentiers\" (Peterson 1959). Marx wanted total socialism, actually communism, or, as he himself called it, \"scientific socialism.\" Keynes wanted some \"socialization of demand,\" and \"a somewhat comprehensive socialization of investment.\" Clearly, Keynes was no friend of laissez faire capitalism Eventually, Keynes presented a whole new set of ideas in his General Theory (Keynes 1936). There he claimed that capitalism tends to run an equilibrium \"between workers and the economy at less than full employment.\" Underconsumption, he said, stems in great measure from a mal- distribution of income. Saving and investment are non-related, and saving amounts to hoarding and is, in effect, anti-social. Three issues in his work that remain controversial are worthy of comment: inflation, macroeconomics, and Keynesian treatment of thestate.

1. How Was the Keynesian School Valid, Useful, or Correct in Its Time?
Solution
Keynes made his mark in history—as Marx made his. But while Marx wanted to destroy
capitalism, Keynes wanted merely to reform it. Both wanted to enlist, and really to unleash, the
power of the state, although where Marx spoke of "the liquidation of the capitalists" Keynes
spoke of the "liquidation of the rentiers" (Peterson 1959). Marx wanted total socialism, actually
communism, or, as he himself called it, "scientific socialism." Keynes wanted some
"socialization of demand," and "a somewhat comprehensive socialization of investment."
Clearly, Keynes was no friend of laissez faire capitalism
Eventually, Keynes presented a whole new set of ideas in his General Theory (Keynes 1936).
There he claimed that capitalism tends to run an equilibrium "between workers and the economy
at less than full employment." Underconsumption, he said, stems in great measure from a mal-
distribution of income. Saving and investment are non-related, and saving amounts to hoarding
and is, in effect, anti-social.
Three issues in his work that remain controversial are worthy of comment: inflation,
macroeconomics, and Keynesian treatment of thestate