Zach Carter, author of the intellectual biography of John Maynard Keynes, delves into the life, work, and enduring influence of the renowned economist.
The conversation explores Keynes’ critique of the Treaty of Versailles, his work in the India office, his views on the British Empire, and his significant role in shaping modern economic theory and policy.
Views on Technocratic Governance
Keynes’ views on technocratic governance were complex.
He saw civilization as a thin crust preserved by the skillful acts of a few, suggesting a belief in the power of technocrats.
However, he also believed in the ability of ordinary people to make good decisions and in the power of good ideas to conquer bad ones.
The bottom line core message of the General Theory is that prosperity is not hardwired into human beings, it has to be guided through political leadership. – Zach Carter
Underrated and Overrated Topics
Carter discusses underrated and overrated topics, including traveling in Taiwan, the 1965 Immigration Reform Act, the Sex Pistols, Samuel Delaney’s book ‘Nova’, and the Bretton Woods monetary system.
He suggests that these topics have significant implications for understanding cultural, political, and economic shifts.
Role in the Formation of the British National Health Service
Keynes played a significant role in the formation of the British National Health Service.
As a financial architect, he worked closely with the socialist labor party to ensure the numbers added up, making him an important player in the establishment of the health service.
Controversial Views
Keynes’ preface for the German language edition of the General Theory has been criticized for suggesting that his economic system would work better under an authoritarian government.
However, he was simply acknowledging the technical aspects of his theory, which posits that the state can organize resources more effectively than atomized financial markets.
Critique of the Treaty of Versailles
Keynes’ critique of the Treaty of Versailles was both economic and political.
He believed that the treaty imposed scarcity across Germany and the victorious allies, leading to international discord and fuelling nationalism.
The reparations, according to Keynes, were unaffordable and led to serious material suffering in Germany.
Work in the India Office
Keynes found his work in the India office intellectually engaging, particularly his analysis of the gold standard within the British Empire.
However, his analysis of the India issue was narrow and technocratic, failing to question the substance of Britain’s relationship with India based on the economic relationships he was analyzing.
Seminal Work
Keynes’ seminal work, ‘The General Theory of Employment, Interest, and Money’, re-evaluates the function of economics, shifting the focus from competition for scarce resources to uncertainty about the future.
The central message of this book is that prosperity is not hardwired into human beings and must be guided through political leadership.
Keynes is not focused on scarcity at this point… he’s refocusing the nature of economics and economic humanity from competition for scarce resources towards the idea that uncertainty about the future is the most important psychological condition for economics. – Zach Carter
Views on Eugenics
Keynes’ views on eugenics have been controversial.
He was interested in eugenics from the perspective of birth control and heritability of traits like eye color.
However, when he had power as a policy maker, he didn’t pursue eugenic policies, focusing instead on more egalitarian financial policies.
Flexible Thinking
Keynes was a flexible thinker, often shifting his economic views to align with his philosophical beliefs.
His economic theories often served as mathematical justifications for his philosophical views.
His social vision remained consistent throughout his life, even as his economic theories evolved.
Changing Views on Working People
Keynes held disparaging views about working people in the 1920s, believing that the British middle class was superior.
However, over the course of his career, he came to believe that prosperity could be shared more broadly, and that a broad swath of the population could enjoy the intellectual pursuits that he and his friends enjoyed.
Legacy as a Policymaker
Keynes’ legacy as a policymaker was largely shaped by technocratic policymaking.
Despite his complex views on technocracy and the British Empire, Keynes’ ideas continue to influence modern economic theory and policy.
Views on the British Empire
Keynes viewed the British Empire as a grand liberal enterprise that was bringing freedom, democracy, and prosperity to the rest of the world.
Despite his faith in technocratic governance, Keynes may have overestimated the ability of technocrats and the British Empire to bring about positive change.
