Keynesian economics on capitalism

I made this thread to possibly understand what Keynesian and other economic theories assumptions are.
Keynesian's obviously view capitalism in a different way than neoliberals do, so what exactly are their different views regarding how capitalism works in practice?
Also, what are your views regarding Keynesian economics? Do we need it? or should we abandon the theory?

Bi0Hazard: I am not sure if any others besides @admin have much of an interest in economics.

Bi0Hazard: As I've always tried to explain to people, Keynes himself argued his theory is correct in the short term. This is validated by plenty of observational data. To this end virtually no serious economist doubts his theories in the sense they were originally written. And yes, we totally need it.

The only question is whether we ought to RELY on his theory as a policy tool in the long term. When markets are predictable people start to move before changes even happen, and over time that makes stagflation happen.

Capitalism works by the same mechanic, fundamentally - private owners control the industry. The main contribution of Keynes was to argue that when money or labor is stuck, you can boost it by spending money. That works in capitalism or anything else. It was used to derive the Phillips Curve. All this is more or less accepted by neoliberals, they just say it screws you over in the long term.

As Keynes famously said when this was pointed out to him, "in the long run we're all dead."

admin: Would you consider yourself as a part of the Keynesian school of thought?

Bi0Hazard: I don't really believe in "schools of thought". I tend to pick little bits from here and there. Keynes said a lot of important stuff but it's not like it's the word of God or something.

admin: @admin I tend to agree with this. When I look at philosophy, economics, science, or various other subjects, I try to draw from both sides of the aisle and take the good points from each.

I think it is a mistake to say only one view is correct.

Kohai: Correct regarding what specifically?
If a theory makes certain predictions and assumptions, you can certainly accept it as correct while holding other views. I think that it isn't accurate to say some political philosophy can even be "correct".
The "good" points from each just all depend on various factors and assumptions.

Bi0Hazard: To over simplifiy everything. Keynesians believe in economic intervention to save the economy in times of economic downturn, stimulas spending, public works/programs, and a central bank. Neo-Liberals, who are predominately Austrians or Chicagians tend to hold the opposite view.

lannan13: Perhaps I phrased my question wrong. I know the differences, but what assumptions regarding capitalism do these opposing views hold?
@admin somewhat answered it, but it would be better if he got more specific regarding this:
All this is more or less accepted by neoliberals, they just say it screws you over in the long term.
Right here, there is a clear difference on how they believe capitalism is best sustained. Neoliberals say it screws you in the long term, but why? and why do Keynesian's differ? There is a difference in view somewhere on how the capitalist system is sustained.
I believe it is important to boil the differences all down to the few assumptions regarding capitalism that they hold.

Bi0Hazard: The theory assumes people react after the policy change, not before. When people react too soon, that changes the policy.

admin: I don't quite get what you mean, but I found the answer.
Supply-side and demand-side economics.
https://en.wikipedia.org/wiki/Supply-side_economics
https://en.wikipedia.org/wiki/Demand-side_economics

Policies should only be made with an eye on what the effects are going to be a hundred years down the road. Keynes pretended to be so irresponsible as to only care about short term benefits, but in reality his real goal which we can see from the effects of his policies, were to erode capitalism so he could realize his vision of a marxist/socialist society.