Keynesianism is an economic theory developed by John Maynard Keynes during the 1930s. It emphasizes the role of government intervention in the economy, particularly during periods of recession. Keynes argued that increased government spending can help stimulate demand, leading to job creation and economic recovery. The theory suggests that during economic downturns, consumer spending decreases, which can lead to a cycle of reduced production and higher unemployment. To counteract this, Keynesianism advocates for fiscal policies, such as tax cuts or increased public spending, to boost demand and encourage economic growth.