Social Democrats

He advocates economic interventionism to avoid collapse. It supports and develops his theory, especially after World War II, as a way out of the crisis and to stem the tide of Communism that is entrenched and acquired force in situations of conflict and need within capitalist societies advanced, in the context of the war cold. Faced with such political pressure was welcomed the new way of understanding capitalism as a system protector and benefactor. He is understood as a form of socializing part of the wealth generated. That a representative of the Austrian school, f. Hayek, later came to remove and disqualify such a theory in his book the road to serfdom. The twilight of Keynesianism happens when Governments debt cannot grow more. The budget deficit poses a danger.

The new criteria are modelled what came defending the Austrian school, which had been cornered. Imposes the criterion of reducing public expenditure to the available resources, which is the basis of the current neo-liberalism and which affects, with more or less rigidity, Social Democrats and right-wing governments. For Keynes employment level does not depend on wages, but other variables, such as the ability of consumption and investment, is in this which suggests influence from economic policy. When consumption and investment incentives are saturated overlap to the practice of the market, favoring the lowering of wages and benefits increased. Which will later be the key of the monetarist policy that replaces the interventionism. To avoid social conflicts, remains a rise in wages in collective bargaining with the unions, but creates a population employment, it represents 32% of workers at the end of the 1990s, whose average wages fall before the temporary hiring and precarious. The basic income is an intervention in society, but not in the economy or through it. It is a starting point that gives way to a new economy that evolves the current model.