What is the essence of keynesian economics?
No. The essence of Keynesian economics is that while an economy might be in equilibrium, ie everything being created is consumed, this need not be at a point of full employment. Thus, the government has to stimulate demand through fiscal measures. The credit crunch has damaged demand, thus the government tries to intervene, by giving you jokers a tax hand out. However, as this is usually spent on imports, it does not help.
