What Is the Difference Between Keynesian and Classical Economics?

The principle difference between Keynesian and classical economics is the role of government espoused in each. Keynesians advocate for increased governmental involvement in the economy, while classicists believe that the economy works best with limited governmental interference.

Keynesian economics were named after John Maynard Keynes, an English economist. The founders of the classical school were Adam Smith, Jeremy Bentham, David Malthus and David Ricardo. Keynes believed that free markets led to uneven economic outcomes and that intervention was necessary to assure equity and efficiency. Members of the classical school believed that economic activity was guided by an "invisible hand" that cleared markets and allocated resources when market participants were left to their own devices. A consensus among economist on which system works better is unlikely.