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Keynes could be hard and inconsistent. Keynes further asserted that free markets don’t have any self-balancing mechanisms that result in full employment. He said this would not encourage people to spend their money, thereby leaving the economy unstimulated and unable to recover and return to a successful state. He agreed saving was a good idea during normal economic conditions. He believed that unemployment was caused by a lack of expenditures within an economy, which decreased aggregate demand. He rejected the idea that the economy would return to a natural state of equilibrium.

Keynes found himself becoming increasingly involved with the political approach. He saw the same kind of flailing at the start of the Depression. He pioneered the use of national economic statistics (macroeconomics). He suggested that the best way to deal with the crisis was to leave the gold standard and devalue sterling.

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