This morning CBC had an interview with an author who has written a biography of Maynard Keynes. In very clear terms that even this laywoman could understand, he explained the difference between Keynesian theory and that of "The Chicago School" of economics. "The Chicago School" theorized that the market would regulate itself without intervention, by inherent economic forces. Keynes believed that government intervention would be needed at times because market self-regulation was inadequate, and would not prevent booms, busts, and crises.
The only thing I knew about Keynes previously was that he was in Virginia Woolf's circle of friends. With all the talk of "Keynesian economics" versus free market forces, it is helpful to have at least an introductory key to what the dispute has been about. Thank goodness Canada's banks have been more strictly regulated than the U.S. banks, making the 2008-09 crisis less intense up here. Of course since Canada depends greatly on exports to the U.S., Canada is affected by the U.S. downturn. Nova Scotia lobster fishers, for example, export the largest part of their catch to the U.S. and the reduced demand has dropped wholesale prices below the cost of fishing. Lobsterfishers are trying to make up for that and by-pass the middleman by selling their lobsters at a reasonable price from the backs of their pick-up trucks. Anyone want to order lobster for Sunday dinner?
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