Classical Economics and the Keynesian Challenge

Abstract

In 1894, with the United State mired in recession and unemployment at an historic high, groups of unemployed workers began converging in different cities with the goal of marching on Washington, DC. Many of these contingents were organized by a radical activist, James Coxey, so the movement was dubbed “Coxey’s Army”. Thousands of them descended on Washington on April 30, demanding that the government set up a public works program to create jobs, financed by increases in the money supply. The police were not impressed by Coxey’s economics, and they arrested him and many of his followers. The movement was turned back.