This is a problem. The key is to remember two things:
- Keynesianism is a theory of macroeconomics. You can be a Keynesian and totally believe in things like the law of demand and comparative advantage and free trade and all that, while having a different view of the macroeconomy. (Whether it's all consistent is a different question.)
- Keynesian is not a synonym for "statist" or "not Austrian." There are other non-Austrian schools of thought and not everyone who thinks government shoudl be more activist is a Keynesian. The latter is linked to number 1 above: thinking, for example, that we need more environmental regulation does not make one a Keynesian.
Understanding demand is quite fundamental to understanding Keynesian economics. Keynesian economics looks at the effect of Government spending and taxation (Fiscal Policy) on aggregate demand. If the economy is slowing, boost it with Government spending (typically some form of infrastructure). If the economy is overheating, bump up the tax rate.
I do not believe Keynes was opposed to free trade. His proposed tax reforms were focused on expenditure rather than protectionism. Keynes ideas are often popular with economists during downturns because they require direct action. Telling a politician to do something sounds a lot better than saying it will just sort itself out or the Central Bank will solve the problem.
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