Reference no: EM133614278

Problem: Cassidy's "Demand Doctor" is none other than John Maynard Keynes, a major economic theorist we talked about earlier. Keynes says that a growing economy requires strong aggregate demand, and in a time where such demand is weak, like during the Great Recession that started 15 years ago, the only solution is for the government to step in and "stimulate" such demand with tax cuts and interest rate cuts, for instance. Keynes would support much of the argument made. Does Keynes or the author Cassidy offer a solution to the problem of excessive deficits and debt that we mentioned above. Spending can be good and even necessary, but too much spending is certainly bad, at least in its end effects. And what ethical theory best models these considerations, Kantianism, Utilitarianism, or virtue theory. In other words, does the economist and economic policymaker need to follow one of these kinds of ethical theories more than others, and why?