Keynes' General Theory Challenges Modern Capitalism's Stability and Assumptions.
Keynes and his followers believed that how much people spend and invest depends on their income and profits. They also thought that inflation and unemployment are connected. However, newer economists disagreed with these ideas and came up with different theories. They said that people's spending is not just based on their current income, profits don't affect investment, inflation and unemployment can be separate in the long run, and taxes don't always change how much people spend. Some experts think that modern capitalism is influenced by things like financial institutions, unemployment, and inflation. But Keynes also had ideas about how capitalism works, focusing on unemployment and economic instability.