October 28, 2011
Keynes was no economist at all: a foxy Fabian socialist
There is simply no doubt in my mind that Keynes was a Fabian socialist, regardless of whether he was a member of that society or not. Fabians had a goal of INCREMENTAL socialism: socialism by stealth.
Read this little bit from his concluding chapter 24 of the "General Theory" (of nonsense):
I see, therefore, the rentier aspect of capitalism as a transitional phase which will disappear when it has done its work. And with the disappearance of its rentier aspect much else in it besides will suffer a sea-change. It will be, moreover, a great advantage of the order of events which I am advocating, that the euthanasia of the rentier, of the functionless investor, will be nothing sudden, merely a gradual but prolonged continuance of what we have seen recently in Great Britain, and will need no revolution. [Source – also read the entire blog post I've linked].
The argument that Keynes makes in chapter 24 (and there is enormous amount of rubbish in that chapter, if you care to read it!) is beyond ridiculous: it displays total disregard for the function of the ENTREPRENEUR and INVESTOR. Without these two (a) coming up with ideas and (b) taking risks, there can be NO PRODUCTION. Keynes has conveniently trashed the MOST FUNDAMENTAL functions of a free economy by socialising investment. In his view (just like in Marx's) the government can PRODUCE by picking and choosing between different investments.
Note what Don Boudreaux writes about this Keynesian nonsense:
Anyone who writes that “there is no intrinsic reasons for the scarcity of capital” doesn’t have a clue about what he is writing.
All scholars err, and many scholars sometimes err big time. But such a statement by someone celebrated as an economist – indeed, as a “great economist” – is error so deep, so profoundly at odds with the most fundamental propositions not only of economics but of the world as we know it – that the person who writes such a thing reveals himself to be no economist at all and, hence, utterly undeserving of the professional accolades heaped on him. [Source]
Keynes is not just an incompetent "economist" he is no economist at all.
The tragedy is that 1000s of "economists" who think along these confused lines have been promoted to the very top in ALL governments across the world.
Just like in climate science those who think scientifically have been pushed out, the Keynesians have cleverly manoeuvred (by sucking up to politicians) themselves to positions where they are able to THROW trillions of dollars down the drain.
Tragically, as is always the case with socialist ideas (and as Bob Higgs notes), it is "the widows, orphans, retired people, and all other financially untutored people who rely on interest earnings to support themselves in their old age or adversity" who are being impoverished by the Keynesians, even as the big banks (who participated in the ruin of USA and Europe) and bureaucrats become even wealthier.