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Keynes was active in public policy throughout his career, and by the 1920s had developed disdain for the laissez-faire policies of that era. He wrote a series of articles critical of that philosophy. Ultimately, a lively rivalry developed between Keynes and other Cambridge economists and the neoclassicists at the London School of Economics. This rivalry dominated economic thought until the publication of the General Theory, which all but buried neoclassical theory for the next several decades

Keynes theories diffused throughout economic and political circles rapidly, because they resonated with a world caught in the depths of the Great Depression. The world economic under the laissez-faire system had collapsed, highlighting deficiencies in that philosophy. The New Deal had begun to turn the US economy around if not unemployment. While there is considerable debate as to the role the New Deal played in the turnaround, if the role was positive at all, observers at the time certainly felt that the government spending contributed to stabilizing and restoring the American economy. Thus, Keynesian economics fit well with the perception of economic events at the time. In periods of economic downturn, government spending could improve aggregate demand......

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