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Keynesian -- demand side

- Response to Great Depression and subsequent rise of Fascism
- Full employment is core goal
- Uses the stimulation of consumer demand to improve economy
- More gov. spending during economic downturns - accept national debt
- Less gov. spending during economic upswings
- Gov. regulation of the economy to control the swings in the economy
British version -- key industries owned by government 
- Inflation is accepted
- Wage and price controls seen as tool if inflation becomes excessive
- Economic equality is major concern
- Dominant economic theory during late 40s, 50s, 60s, and 70s

Supply side

The stimulation of capital and investment to improve economy
- Less gov. spending in general
- Less taxes in general, but especially during economic downturns
- Less gov. regulation - deregulation helps fight inflation
- Fighting inflation is core goal
- Unemployment is accepted
- Free markets are major concern
- Economic equality is not a concern
- Rises with Reagan, Thatcher (early 80s)