John Naish
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Alistair Darling, the Chancellor, may be basing his economic rescue plan on the idea that “a lot of what Keynes wrote still makes sense”, but he doesn't know the half of it.
John Maynard Keynes, the old maverick, plotted a revolutionary prescription for our era that makes Mr Darling's planned public spending splurge look sepia coloured and disastrously short-sighted.
In the depths of the Great Depression, Keynes imagined a completely different future for us, far removed from today's world of boom and bust. In a largely forgotten essay, Economic Possibilities for Our Grandchildren, he predicted that in three generations' time (the era we are entering) the “economic problem” - the challenge of creating and allocating resources so that everyone would have enough to satisfy their needs and basic desires - would be solved. Once we had passed that historic point, he thought that we would be liberated to explore the greater potential of humankind.
For Keynes, economics was a dirty game, and the business of earning and spending was a sordid obligation that humanity should shrug off as soon as possible. In the 1930s he believed that until we had developed our economy and technology sufficiently to support our human material requirements “we must pretend to ourselves and to everyone that fair is foul and foul is fair; for foul is useful and fair is not. Avarice and usury and precaution must be our gods for a little longer still.”
But once we had got ourselves “out of the tunnel of economic necessity into daylight”, he predicted: “I see us free to return to some of the most sure and certain principles of religion and traditional virtue - that avarice is a vice, that the exaction of usury is a misdemeanour and the love of money is detestable...We shall once more value ends above means and prefer the good to the useful. We shall honour those who can teach us how to pluck the hour and the day virtuously and well.” He thought that we would flourish in the arts, in culture, and even perfect the ultimate refinements of beauty and friendship.
The man whose ideas helped to navigate Britain out of the mass unemployment of the 1930s after orthodox economics had failed, would look at the Western world today and declare: “Fiscal job done. Let's get on with the interesting stuff.” Remember, Keynes wasn't some dry old number-shuffler, but a member of the proto-hippy Bloomsbury circle who did his fair share of youthful sexual adventuring. In the 1940s he chaired the Council for the Encouragement of Music and the Arts - the progenitor of the Arts Council.
Of course, Keynes has the advantage on us, in that he was writing with the benefit of imaginative foresight. It's a perspective that we don't enjoy, as we come full up against the consequences of unprecedented levels of material and technological abundance. In his optimism, Keynes rejected the possibility that once we had solved the economic problem we would shackle ourselves by constantly chasing ever more stuff - possessions, debt, celebrity, Brand'n'Woss-style infotainment, rather than learning to be satisfied with material contentment and evolving from there.
He predicted that only a sizeably ignorant minority would pursue constant, selfish consumption: “When the accumulation of wealth is no longer of high social importance, there will be great changes in the code of morals,” Keynes wrote.
“Of course there will still be many people with intense, unsatisfied purposiveness who will blindly pursue wealth unless they can find some plausible substitute. But the rest of us will no longer be under any obligation to applaud and encourage them.” Indeed, Keynes imagined that instead of encouraging the likes of Posh'n'Becks through magazines such as Heat and Grazia, we would foster a virtuous cycle that would run something like this: if we create and consume less consumerist propaganda, and if we feel less hurried and worried, then we should feel that we have enough materially and therefore need to spend less, strive less and earn less. Then we will have time and energy to spend in more fulfilling and mutually productive ways.
The likes of Mr Darling have failed to read Keynes's revolutionary recommendations for our abundance-glutted times. Instead, our economic leaders are bent on applying his 1930s solution to a 21st-century problem. Simply jump-starting the creaking old Keynesian economic model will only guarantee us more boom, more bust, more misery and a future in which our needless overconsumption of finite global resources can only increase.
Economic Possibilities for Our Grandchildren was out of print for 20 years, but was revived last year in Revisiting Keynes (edited by Lorenzo Pecchi and Gustavo Piga, MIT Press). Mr Darling, and the rest of the world's economic leaders, would do well to visit the bookstores to learn what Keynes truly prescribed for this 21st-century crunch.
John Naish is author of Enough: Breaking Free from the World of More, published by Hodder & Stoughton
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Keynes was a great economist, he was also very naïve, not a great thinker
Adrien, Paris, France
to Dave from London. Every science is about what has happened or about what we want to happen. Not many differences between economy and sience (both try to conceptualize alterity in order to predict and repare...)
adrien, paris, france
This is not only applicable to personal lifestyles, but also to our manner of government. Why do we need a never-ending influx of immigrants? So that British economic growth continues, we are told, but who needs that economic growth? Not me, for sure.
Steve, Porthcawl,
This is a wonderful antidote to the notion that the economy will collapse if we don't all go out and spend our small remaining savings on buying things we don't need.
How can we build an economy and a culture that knows what is enough?
Rachel, California, USA
I for many years have never really seen the point of accumulating riches of any kind, my old man said once that if he could go to his maker with just a penny in his pocket he would feel life had been worth living, well he left more than a penny but not much more, and yes he was a winner!
william thomson, lincoln, uk
Dear old Keynes - he was a rounded person for an economist and I'm sure his vision was well intended. His economic theory is still relevant in parts as with monetarism which followed - but not a panacea. In this shallow age we seek the silver bullet solution - always!
Peter, London,
Ignore Keynes, read Adams..."And so the system broke down, the empire collapsed, and a long, sullen silence settled over the galaxy, disturbed only by the pen-scratchings of scholars as they laboured into the night over smug little treatises on the value of a planned political economy." -
Frank, Plymouth,
Keynes is a comfort blanket for economists and politicians. His ideas were never really tried out and therefore remain fluffily attractive.
Frank Upton, Solihull,
All governments are rooted in power & control. When people can control their own means of production these cycles might stop, & the internet might be the tool to accomplish that. As for the world population being a problem... Walk across China or Canada & tell me if you still feel that way.
Steve, Derby, England
Well surprise surprise, we were not taught aspect of Keynes this at school, indeed what were we taught except to knuckle under and happily become wage slaves. Urged on by our loving parents so as to get us out the door ASAP.
Tom O'Farrell, Sarnia, Ontario
What strikes me, as a scientist, is that so much importance is given to economists and their theoretical work. Economy, at best, has the predictive power of star sign reading! It works mre-or-less as a discipline for describing what happenED. Much like all other "social sciences".
Dave, London, UK
Hard to see how Keynes would have said "fiscal job done" when there is collapse of asset values, growing unemployment, homelessness, etc. His economics, not his half-true prophesy, seems what we need now . We'd understand Keynes better if we read Skidelsky, Moggridge or Markwell on Keynes.
Laura Harrison, Liverpool,
I put it down to climate! As a half south african/ half brit, I feel there is nothing else worth doing here than working for the warmth of money. In other countries they go to the beach or have a bbq instead of working for the man so hard, for which he cares not 1 iota, GIVE IT UP and see the sun..
Gary, London,
I think Keynes' theory is of great use in some content depending on how we use it. If we just apply it into solving problems directly, the results won't be satisfactory. What we need to do is to modify it to make the theory more suitable for the modern sociaty.
Brian, Beijing, China
Le Corbusier;The architect by his arrangement of form realises an order which is a pure creation of his spirit he affects our senses to an acute degree and probes plastic emotion;by the relationship he creates,he awakes profound echoes in us.They changed us, but not the way they expected.
ged, manchester,
The only reason why Keynes has been dragged out of the attic is to provide an intellectual base, on which socialists feel comfortable, for a suitably arguable case to 'pump-prime' the economy in time to provide sufficient feel good factors ahead of the next general election. Don't mention the 1970's
Alan Gooch, Honiton, UK
"Am I a liberal?" (1925) is another of his essays which should be required reading for those who think that how one leads ones life matters - and that politics matter.
Simon., Prevalje, Slovenia
A glorious Keynsian vision of the future, but how do we get there is this job-obsessed economy. The answer (which I don't think Keynes accepted) is of course Basic or Citizen's Income. There is more than enough wealth in the economy to pay everyone a small but adequate income separate.
Conall, Margam, West Glamorgan
I nver new this about Keynes. I see around me the seeds of what the article describes, clearly the error of Keynes is in the timing. Worth investigaing further
malcolm, ely,
Time for a world government with a benign dictatorship.
Russell, Lugano, Switzerland
So..this proves that even great scholars can be crushingly naive and in error (and apparently no more of a visionary than describing financial gains in the most conventional of Christian motifs). Sorry, why was it again we'd want to pursue that as a measure of guidance?
Poul M P Pedersen, Stockport, UK
This utopian state is unattainable unless population shrinks drastically. Then there is the problem of politics. Affluent countries irrationally feel threatened by developing nations and erect trade barriers. Until all nations rise to the same level of affluence, Keynes vision wont be realised.
Indranil Mustafee, London,