SUPPLEMENT
No. 34September 12,
2020
Discussion on the Economy
Modern Monetary Theory:
Keynesianism Warmed Over
- K.C. Adams -
From the TML Archives
• Invoking
the Ghost of Keynesianism to
Derail the Workers' Movement
- K.C. Adams -
• Keynes
in
His Own Words
Modern
Monetary Theory
- K.C. Adams -
TML Weekly
is providing a critique of Modern Monetary Theory
(MMT) as put forward in
an article titled "Fiscal Deficit, Modern
Monetary Theory and Progressive Economic
Policy" by Andrew Jackson (July 14, 2020).
Andrew Jackson is the former Chief
Economist at the Canadian Labour Congress and is a
Senior Policy Advisor at the Broadbent
Institute.
MMT is in vogue today as arguments are found to
back up changes to fiscal policy to rescue
the rich from the crisis which results from the
tendency for the rate of profit to fall.
The critique provides selected excerpts from the
item by Jackson on "Modern Monetary
Theory" with comments in double
parentheses. The complete item is available here.
***
MMT is something of a misnomer. Far from being
"modern," it draws heavily on
monetary theories developed in the 1930s by John
Maynard Keynes, and since that time, by
left Keynesian economists rejecting orthodox
finance and the view that government budgets
should (almost) always be balanced, that deficits
crowd out private investment which should
be driving the economy, that monetary policy
(changes in interest rates) as opposed to fiscal
policies (changes in public spending) should be
the key policy tool for managing fluctuations
in the economy, and that private investment is
much more productive than government
spending.
The central proposition of MMT is that a state
controlling its own currency can readily
finance fiscal deficits (resulting from spending
increases or tax cuts) at low or no cost through
money creation and direct funding of government
spending by the central bank.
((The "central proposition" eliminates all but the
most powerful countries from consideration.
Even those without their own currency within a
common currency such as the Euro zone are
treated unequally. Compare the situation of Greece
with that of Germany or France. Greece
was unable to "readily finance fiscal deficits"
using the Euro and suffered terribly. Greece is
under the domination of the big European powers
and U.S. imperialism and does not have the
ability to act independently in its own interest.
Even a large and developed country such as
Argentina with its own currency is constantly
under attack because its huge public debt is in a
foreign currency (mainly the U.S. dollar but
also the Euro and Yen).
The "central proposition" ignores the real world
of U.S. dollar hegemony backed by the U.S.
military, which gives U.S. imperialism a powerful
weapon to bring others under its
control.)) Unlike households or businesses, governments
with their own currency and their own central
bank can never go broke because they can always
create money to fund deficits or to pay off
debts.
((This statement wanders into the world of
idealism bordering on mysticism. It conjures up
the idea that something which is not produced
can be consumed. Without workers producing
new value as goods and services, the country has
no new value to consume unless it steals
from others. The concept that a "central bank can
never go broke because they can always
create money to fund deficits or to pay off debts"
denies the reality that the human factor, the
working class, must be set in motion on means of
production if any good or service is to be
produced and consumed. How does a nation or people
organize that reality and with what aim
are crucial issues. Money can represent social product that has been
produced. It can represent potential
production but the potential must become actual or
the relationship collapses.] Assertions such as "can never go broke" are used
to divert people away from facing the
problems as they pose themselves.))
The only real constraint on public spending for
countries with monetary sovereignty is real
productive capacity. Too much additional deficit
financing of public spending or tax cuts in
an economy with full employment will push up
inflation.
((No imperialist economy has ever had "full
employment." The closest an imperialist country
comes to full employment is through full military
mobilization to fight a major war. In that
case, many from the working class are not engaged
in creating social product but destroying it
through warfare and many of those that are working
are producing war materiel.
According to the imperialists, full employment
would give too much power to the working
class to increase its claims on the new value it
produces. Full employment would destroy the
imperialist labour market or at least render it
powerless to control the working class.
As well, "monetary sovereignty" can only exist
within a sovereign country. No country,
including Canada, within the U.S.-controlled
imperialist system of states is independent or a
sovereign state. This lack of sovereignty includes
lack of control over its money supply or
currency.
These terms "full employment" and "monetary
sovereignty" are bandied about to dull the
mind and render it incapable of analyzing the
concrete conditions.))
Canada and many other
countries do have "fiat" money that can be created
by central banks
"at the stroke of a pen."
((Yes, Canada does have a fiat currency but that
fiat currency serves the ruling global
oligarchs in control. If it serves the oligarchs
to create money "at the stroke of a pen," they
will do it, as Trudeau has demonstrated with his
$350 billion plus deficit for this fiscal
year.))
Central banks can and
do expand the monetary base.
((The U.S. central bank, the U.S. Fed, is a
cartel of private banks doing their bidding.
Canada's central bank is an institution of the
state under the control of the oligarchs with the
leadership carefully chosen to serve their private
interests and pay the rich.))
[I]n normal times, the
great majority of new money is created by the
private banking system as
loans rather than directly by the central bank to
finance the government's operations.
((The recurring economic crises could also be
called "normal" as they normally occur with
regularity. During a crisis, the competing
oligarchs are at each other's throat with even
more
ferocity than usual, and "normal" lending and
borrowing become frozen. The central bank
intervenes with "liquidity" "at the stroke of a
pen" to rescue the situation for the oligarchs, at
least those best positioned to weather the storm
or even increase their strength and wealth
such as certain oligarchs have done during this
crisis, i.e. the dirty dozen -- the 12 uber rich
individuals in the U.S. who have increased their
personal wealth many times over during the
COVID pandemic.))
MMT rightly challenges
the orthodox idea that government budgets should
be balanced and
that deficits should be incurred only to fight
deep depressions when low interest rates no
longer work. As argued by Keynes in the 1930s,
deficits will not crowd out savings and
private investment if the economy is operating
below capacity.
((Why should a Canadian be concerned about
crowding out private investment even at the
best of times? What problem facing society has
private investment solved? Has it solved the
housing question including homelessness, poverty,
inequality etc? Has it solved the question
of war and peace? If problems are to be solved
then people have to have the control, power
and means to do so and under imperialism it means
claiming what belongs to the people by
right despite possibly crowding out savings and
private investment of the oligarchs.
For the working class it means solving the
problem of its unequal oppressive social relation
with those who buy its capacity to work, and
creating a new social relation among workers
themselves. It means striking out on a new
pro-social direction for the economy and
democratic renewal where members of the polity are
truly equal and can exercise control over
those economic, political and social affairs that
affect their lives.))
[P]ublic investments
financed through deficits and debt can create a
more robust economy and
infrastructure, leaving future generations with
greater wealth and opportunities.
((But under imperialist control the "robust
public economy and infrastructure" becomes a
prime target for privatization especially when
other private investment opportunities are few,
the rate of profit has shrunk with productivity
and pay-the-rich schemes using public funds
have become a "necessity" for any private
investment of any size.))
Keynes, unlike the
"bastard Keynesian" wing of mainstream economics,
looked forward to the
day when the economy would be driven by productive
public investment with no need for the
state to borrow from the rentiers living off
interest income.
((Obviously Keynesians disagree among themselves
whether Keynes ever looked forward to
such a day or maybe it was simply propaganda to
fool the gullible. An economy "driven by
productive public investment" would have to be
under the control of the actual producers and
capable of defending itself from imperialist
marauders or it would not last long. Many in
Latin America and the Caribbean dream of an
economy "driven by productive public
investment" but are faced with the harsh reality
of defending themselves against imperialist
aggression if their dream is to come true.
The other aspect of this is the fact that the
imperialist economy has long been recognized as
having fallen into parasitism and decay. The
economy is more characterized by unproductive
investments and war than anything else. The author
even acknowledges this when he speaks
of the extra cash coming the way of the
imperialists from tax cuts and other pay-the-rich
schemes being used unproductively in such things
as stock market buybacks and increased
dividends.
Some people refuse to see the world as it
presents itself because they do not want to face
the
necessity of a new direction and being part of
sorting out what that direction looks like or
should be, which means confronting the
imperialists and facing down their anger and
counter
attacks.))
[T]he key ideas of MMT
are not so much modern as a return to the radical
Keynes and the left
Keynesian tradition.
Both hold that
conventional policy results in economies running
well below capacity much of
the time, and both reject the mainstream view that
the macro-economy should be primarily
managed through monetary rather than fiscal
policy.
Today ... the Bank of
Canada is printing billions of dollars to buy
government bonds in order to
lower interest rates.
For the first time
they have moved beyond "quantitative easing" --
buying up government
bonds in the secondary market to lower interest
rates -- to direct purchases of government
bonds.
They are supporting
massive federal and provincial government deficit
spending. The Bank
may not loudly endorse MMT, per se, but they are
acting on that basis and demonstrating that
the state can indeed always pay for what must be
done.
[A]ll kinds of orthodox
economists and policy makers have temporarily
accepted that a massive
increase in public spending can and should be
undertaken without raising taxes and almost
irrespective of the deficit and debt.
[T]he key question is
how long this can go on.
((Why is this the key question? Should the key
question not be the issue of who controls the
economy, and in whose interest and with what aim?
The imperialists are desperate to save
their bacon and they are throwing tons of money at
doing just that. Already the imperialist
think tanks and media are full of dire predictions
of tax increases and a tightening of the belt
for the people.
Why not simply admit that the crisis has
increased the striving of each oligopoly working
as
part of a cartel and of coalitions to control
everything, beginning with state institutions of
each country and their governments? They will do
anything to protect their private
interests.
They are at each other's throats over how to
proceed, most decidedly or openly in the U.S.
and internationally with China and Russia. How do
the established imperialists and centres
deal with the upstarts and competitors that are
rising in Asia and to a lesser extent in Russia?
World war is a grave danger if people do not build
an anti-war government. Refusing to
recognize the dangers is not helpful to the people
organizing to defend the rights of all by
humanizing the natural and social environment and
making Canada a zone for peace.))
Stephanie Kelton [the
main U.S. economist/professor promoting MMT, or
rather being
promoted as such, was an advisor to Bernie Sanders
and is now with the Biden gang -- TML Ed. Note] calls
for much higher levels of public investment and
spending to deal with a wide range of social
ills, funded directly by the central bank, on a
continuing rather than one-time emergency
basis. This has understandably appealed to
progressives.
So long as we have low
inflation and a very depressed economy, the Bank
of Canada is
unlikely to change course and will backstop
massive government spending to deal with the
crisis.
They will give fiscal
policy the latitude to drive recovery in full
recognition of the fact that
even near-zero interest rates are not enough to
deal with the slump. But, as things stand, they
still basically control monetary policy.
MMT is rather silent
on this, just saying that governments can set the
interest rate. It begs the
question of who actually controls interest rates,
and in whose interests.
Dating back to at
least the 1970s, the Bank of Canada ... has generally
chosen to accept some
slack in the economy so as to discipline labour
and to maintain low and stable inflation.
((To say the Bank of Canada has generally chosen
to accept some slack in the economy is an
over generously benign way of describing
unemployment, insecurity, poverty, war, the
refusal
to address and resolve social problems and the
direct onslaught on workers' rights with the
anti-social offensive. The working class movement
has long been in retreat suffering attacks
on their rights, pensions and other social
programs, the deterioration of conditions of work
through contract work, part-time work and now the
gig sector, privatization, the expanding
pay-the-rich and war economy and destruction of
any semblance of independence of the
country through multiple free trade agreements and
imperialist globalization as well as the
integration of state bodies/structures and
regulations with those of the United States war
economy and Homeland Security.))
Conventional thinking
has emphasized setting low interest rates in an
economy operating
below capacity, as has been the case in the slow
recovery from the global financial crisis.
But this, as Kelton
argues, has starved public spending, while
fuelling the destructive and
unsustainable growth of household and corporate
debt, and fuelling the asset price inflation
that has greatly increased inequality of income
and wealth.
((Note: Imperialist economics describes asset
price inflation as a rise in the price of assets,
as
opposed to consumer goods and services. Typical
assets are financial instruments such as
bonds, shares, and their derivatives, as well as
real estate and means of production, especially
raw material or commodities as the imperialists
like to call them. All these assets are bought
and sold multiple times. This is the continuous
exchange of already-produced value and in
many instances such as commodity futures and the
stock market no production at all, which
could be termed fictitious value. The imperialist
economy does not attend to its overall health
but rather to the health of the individual
competitors within it who hold power. Economic
crises are regular occurrences because the human
factor/social consciousness and aim to meet
the needs of the people and society are blocked
from playing their decisive and necessary
role.))
[C]orporations have
borrowed at low rates to ramp up unproductive
activities such as share buy
backs and increases in dividends.
MMT rightly emphasizes
that priority should be given to fiscal policy
over monetary policy,
while taking no single position on what
governments should spend on.
Proponents such as
Stephanie Kelton generally support big increases
in public investment –
the green economy, education, infrastructure,
etc., as well as a federal job guarantee.
They also argue that
if and when inflation becomes a problem, it could
be tackled through
selective tax increases on households and
business, as opposed to an increase in interest
rates
which would limit government investment and drive
up the carrying costs of the public
debt.
((The public debt is to private investors and in
the case of the U.S. many foreign state
investors. U.S. public debt is unique in that it
can borrow to pay for whatever it has already
borrowed and more, such as its military because it
dominates the world. Countries and people
are hesitant to challenge U.S. authority because
the U.S. will destroy whatever it cannot
control.
Government borrowing
from itself exists in tandem with government
borrowing from private
interests. A moratorium on servicing the public
debt to private lenders and investigating its
legitimacy and prohibiting any future such
borrowing would be a positive reform but the
people must be organized and mobilized to
implement and defend such a reform.))
Kelton argues that
support for MMT should exist across the political
spectrum, but she
neglects the role of real interests.
The banks want to
retain their central role in money creation.
MMT also tends to
minimize real structural constraints on government
macro-economic policy
in the context of global capital flows.
(("Global capital flows!" -- A rather genteel way
of referring to imperialism and the brutal
private interests of the oligarchs who scour the
world in search of maximum profits and
places to pillage. The imperialists have no sense
of social responsibility because that would
interfere with their aim of maximum private
profit. Countries under the thumb of imperialism
do not have all-sided self-reliant economies
within nation-building projects. The country under
control has to offer the imperialists something
such as certain raw materials or cheap capacity
to work from their working class. As soon as
something negatively disturbs the return on
investment, the imperialists will pull the plug
and abandon the people or lash out at those it
may accuse of causing trouble.))
MMT says that
governments can control the interest rate through
the central bank. This is true
in the first instance but highly problematic in a
world of capital mobility if investors fear too
much inflation or currency devaluation.
The Bank of Canada can
maintain low interest rates, but they face the
possibility of capital
flight on the part of both domestic and foreign
capital, which would bring down the exchange
rate and fuel inflation.
((These comments mean that fiscal or even overall
government policies cannot prevent
"capital flight" if the imperialists feel their
interests are threatened. This means the central
issue is one of control. Who controls the economy
and in whose interests? To control the
economy, the working class has to control the
politics, as politics is the concentrated
expression of economics. Controlling capital
flight requires controlling the economy in the
public interest and the value that comes into and
out of the economy. It means building up the
independence and self-reliance of the economy
through extended reproduction. This requires
control over the new value and how new value is
distributed. This requires democratic
renewal and the working people gaining political
decision-making power for otherwise the
imperialists will continue to dominate.))
This point is
discounted by MMT proponents, who are mainly
talking about the U.S. which
controls the global reserve currency and is thus
in a unique situation.
Many foreign central
banks of surplus countries such as China and Japan
own huge reserves
of U.S. bonds that they would be reluctant to sell
quickly since this would raise their own
exchange rate, result in large paper asset losses,
and cause a major disruption to the global
financial system....
The ability of the
bond markets to punish smaller countries with high
levels of public debt
and incipient inflation cannot be dismissed.
((Argentina comes to mind. Much of its massive
public debt is in foreign currency (U.S.,
Euro and Yen) unlike Canada where only a small
percentage is in a foreign currency. But
Canada's public debt is held mostly by
"institutional investors" that are linked with
U.S.
imperialism. Canada is just as vulnerable to
"punishment" by the bond markets if the
government does anything to annoy the imperialists
and this cannot be discounted or
dismissed and must be taken into account
politically. The people have to be mobilized
politically and organized to fight to defend their
interests otherwise nothing will change and
the imperialists will carry on anti-consciously
leading us all to disaster.))
Keynes argued that
countries could only control interest rates if
currencies were managed and
if there were controls on international flows of
capital.
((Who controls these flows from where and to
where? International investment of accumulated
wealth is fundamental to imperialism, which is
associated with the thirst for cheap raw
materials, workers to exploit and places to
pillage and control. When the young Soviet Union
cut off one-fifth of the world from imperialist
investment and theft this seriously weakened
imperialism and was a key reason that imperialism
was determined to destroy the Soviet
Union through war and subversion.
Controls on international flows of capital are a
pipedream without a determined political battle
waged by an organized and politically conscious
people determined to direct the economy in a
new way that favours them and builds the nation
and the new.))
Dismantling of the
post-War Bretton Woods arrangements was intended
to set the stage for a
shift from nationally controlled economies to a
world of international capital flows that
constrain governments.
((Exactly, and this became U.S. global dollar
hegemony and its position as the imperialist
reserve currency that those in the U.S.
imperialist controlled system of states were
compelled
to buy and hold in reserve. Dollar hegemony is a
big factor favouring U.S.-controlled
globalization and control of the international
financial system allowing it to enforce sanctions
and blockades and punish anyone who dares to
resist U.S. control.))
MMT is right to argue
that so long as the economy is operating below
potential, we can and
should run large deficits to fill the gap and to
address public policy priorities such as the need
for affordable housing, expanded public healthcare
and building a green economy.
((The writer uses the expression "below
potential." What is the potential of the
imperialist
economy? The potential lies in the modern
socialized economy of industrial mass production
but imperialist control carves it up into
contending narrow private interests and their
cartels
and coalitions. Competing private individuals and
groups obsessed with the aim of maximum
profit for themselves are quite capable of tearing
each other apart and blowing up the whole
to serve their narrow private interests. The
potential cannot become actual without the
economy coming under the control of the actual
producers, the working class, with a new aim
to constitute the nation so that it serve the
people and society.))
These deficits will
have most impact in both social and economic terms
if used to finance
well-chosen public investments, as opposed to tax
cuts. Inflation is not likely to be a
problem.
((Why is inflation not likely to be a problem?
Because the working class has been beaten
down and its organizational strength decimated.
Price inflation is a weapon to defeat wage
increases and reduce the claims of workers on the
social product they produce. Prices are not
stable but under the control of the oligarchs and
serve their interests. You could say with
certainty that as the working class begins to
reorganize and pull itself up and claim what
belongs to it as it must, the imperialists will
fight back with price inflation and other means to
combat any widespread wage gains just as they did
in the 1970s.
Control of prices in the people's interest can be
achieved through public control of the
wholesale market and an imposition on the major
sectors and producers of a modern formula
to determine prices of production of goods and
services. A modern formula includes an
average rate of profit and enough reproduced-value
to meet the needs of the working people
and society. This is coupled with all large
businesses fully paying for the infrastructure
they
consume during the course of their activities
(mass transportation, roads, bridges, electricity,
water, sewer etc.))
We can run large
fiscal deficits now, but not indefinitely, without
major changes in fiscal and
monetary policy and in political direction. In the
longer run, we cannot have everything we
want just by printing money.
((We cannot have everything we want when we, the
working people, do not have control over
the economic, political and social affairs of the
country.))
If we want permanently
higher public spending, we also need to raise
taxes.
((What happened to the declaration of the
importance of public funds from public enterprise?
Public enterprise is the only sure source of
public income. This can be coupled with public
control of the wholesale sector and prices of
production governed with a modern formula that
guarantees a certain level of individual and
social reproduced-value (wages, benefits and
social programs serving the people). This requires
determined political control of the economy
by the working people. The imperialists always
revert back to attacks on the people through
taxes, in particular individual taxation, which
they sometimes even call progressive.))
If we want much more public investment, we will
also have to give less priority to private
consumption, especially the luxury consumption of
the rich.
((The issue is not private consumption but
private expropriation of new value (profit)
through
private control of the socialized economy. The
actual producers, the working class, have to
bring to the fore their aim for the economy to
serve the people and nation-building and
exercise control over the economy so their aim is
fulfilled.))
If we want greater
control of our economy, we must confront the power
of private financial
interests.
((How this is to be done is not addressed. It
requires building a political party which
organizes the workers movement to take up its own
nation-building based on democratic
renewal. By constituting the nation, the working
class must take practical measures to gain
control over the economy and country.))
MMT, based on the
theoretical legacy of left Keynesian economics,
offers us a way forward,
but it does not free us from the very real
constraints of capitalism.
((The way forward is to free ourselves from the
constraints of imperialism. Without freeing
ourselves from the constraints of imperialism
there is no way forward, only in this instance
the empty policy objectives and words of warmed
over Keynesian economics. Even when they
were given rise to, Keynesian economics were
designed to block the working class from
freeing itself from the constraints of imperialism
in organizing, thinking and theory. Today,
they are promoted as a so-called already
discredited "Third Way" to suggest that the "one
percent" can be made to share their wealth with
the "ninety-nine percent" so as to renew
capitalism to make it work. It is the miracle the
new Throne Speech and Finance Minister
pledge to achieve. It is nothing but pie in the
sky to hide the schemes to pay the rich and fool
the gullible. Their problem is that the only
gullible these days are the highest echelons of
business unions whose own narrow private interests
put them as out of touch with reality as
the government and its ministers with whom they
hope to align the working class.))
From
the TML Archives
- K.C. Adams -
Originally published in December 2010.
Some people have the habit of resurrecting the
ghost of
Keynesianism in an attempt to divert the workers'
movement from
engaging in a concrete analysis of concrete
conditions. It is not
uncommon to hear that what is needed to deal with
the present
economic crisis are "Keynesian measures to
stimulate employment
and strengthen the domestic market." This
prescription is pitted
against the neo-liberal measures in a manner
designed to suggest
that there are two options facing the peoples of
the world.
What does this mean in practice? Does a formula
exist that
corresponds to "Keynesian measures"? Why would
Keynesian measures
from the economic crisis of the 1930s be suitable
today? Such
measures, whatever they imply, do not emerge from
a concrete
analysis of the situation in any country or from a
human-centred
program arising from the reality of the class
struggle taking
place today.
Global neo-liberalism using electronic and other
means to
control entire economies under the aegis of U.S.
military and
economic hegemony is not the same world of the
1930s. Also, to
introduce the prescription "Keynesian measures"
sidesteps the
issue of what those measures were in the 1930s and
what they
accomplished. They certainly did not put an end to
the crisis or
prevent the big powers of Europe, the United
States and Japan
from preparing for war to re-divide the world.
The fact that neo-liberals beginning in the 1970s
attacked
public spending on big projects and social
programs, which they
called Keynesian measures, does not clarify what
those measures
may be in the present circumstances or lend them
any credibility
as a program of action that is human-centred and
which can bring
positive relief for the people in the current
circumstances. Some
commentators called the Bush/Obama Troubled Asset
Relief Program
(TARP) bailouts of the financial sector a
Keynesian measure while
others disputed that assertion. Others in the U.S.
speak of the
need for "military Keynesianism," a program of
pouring money into
war preparations, militarization of social and
cultural life and
war. In this sense, Canada is undergoing "military
Keynesianism"
where every facet of life is being militarized as
one price to be
paid for deeper annexation into the U.S. Empire.
For the U.S. economy where much of what is called
the military
industrial complex is spread out over many states,
public
spending on war preparations and war does
"stimulate employment
and strengthen the domestic market." Do proponents
of "Keynesian
measures" approve of public war spending as a
positive program?
Certain economists say war spending is Keynesian
but that it is
only about half as effective as similar public
spending outside
the military sector. Much of the war material does
not circulate
as means of production and consumption within the
domestic
economy, especially in predatory wars in poor
countries such as
Iraq and Afghanistan, where spending is
concentrated in the war
theatre.
When thinking about Keynes and his rise to
prominence, it
should be remembered that public spending of any
kind in
significant quantities is a feature of monopoly
capitalism, which
had just come into being at the turn of the
century when he was
being groomed as an intellectual to defend the
British Empire.
Public spending was not a feature of nascent
capitalism of the
nineteenth century.
Two momentous events marked the consciousness of
all
intellectuals of the first two decades of the
twentieth century:
World War I and the Great October Socialist
Revolution in Russia.
All intellectuals from that time, of which Keynes
was one, were
products of a new era that had burst on the scene
with such
thunder and drama: the era of imperialism and the
proletarian
revolution. Keynes in his personal and public life
came down
squarely on the side of defending monopoly
capitalism and
opposing the working class from gaining political
power. His
intellectual skills were much appreciated by the
ruling elite of
Britain and he was richly rewarded. Monopoly
capitalism posed new
problems for the class in power and Keynes
provided theoretical
guidance in dealing with those problems. The rise
to power of the
monopolies meant that the capitalist state itself
had undergone
momentous changes. The cost of WWI meant new forms
of taxation
were introduced of which the personal income tax
was the most
important. Personal income tax provided the
imperialist state
with enormous amounts of public funds. How to use
these public
funds to defend the monopoly capitalist system and
assist
particular monopolies to defeat competitors in the
global
marketplace and who was to exercise control over
those funds
became practical and theoretical problems for the
ruling elite of
which Keynes was an important member.
Keynes himself was not only an ardent promoter
and
theoretician of the capitalist system and the
British Empire; he
was an active participant in the 1920s stock
market frenzy. He
lost a sizeable fortune with the 1929-30 stock
market collapse;
however, he recovered all of it and more by the
end of WWII.
First Baron Keynes' personal fortune upon death
was equivalent to
$16.5 million.
Large public spending to help certain monopolies
or sectors
and more generally to defend the system from
collapse or takeover
by the working class through revolution is a
feature of monopoly
capitalism. Little academic literature was
available in the early
years of monopoly capitalism to support such
activity and give it
theoretical guidance. Keynes and other
intellectuals provided
practical and theoretical guidance to the state
during a period
of economic crisis and global revolutionary
upheaval within the
British Empire and elsewhere.
Keynes' theoretical works were widely used to
argue both for a
liberal social welfare state and militarized
fascist state
according to the conditions and needs of a
particular imperialist
bourgeoisie. Theoreticians of German National
Socialism within
Hitler's Nazi Party used Keynes' promotion of
public spending to
provide theoretical justification for using public
money to help
particular monopolies and to underwrite the
rearmament of
Germany. These theories can now be said to
underpin the arguments
that workers and people generally should rally
behind their own
monopolies so that they become competitive and
successful in the
global marketplace. In a similar manner, people
are taught
one-nation politics of rallying behind U.S.,
Britain, German,
French or Japanese empire-building. In Europe his
theories were
used to bolster European socialism (against
"oriental despotism")
and in North America, U.S. exceptionalism. Both
contend that
monopoly capitalism does not contain within itself
contradictions
that need to be resolved through revolution led by
the working
class.
Keynes was one of the leading intellectuals of
the 1944
international monetary system called
Bretton-Woods, which U.S.
imperialism with the acknowledgement if not full
agreement of
Britain, imposed on its allies and colonies.
Bretton-Woods
established the International Monetary Fund and
the precursor to
the World Bank. Importantly, Bretton-Woods created
the
institutional conditions for U.S. financial
hegemony over the
capitalist world and the modern system of
international usury to
bind the former colonies to the imperialist states
in perpetual
indebtedness. Bretton-Woods marks a turning point
from
nation-building within the capitalist countries to
an imperialist
system of states dominated first by two
superpowers and today by
a single superpower striving for sole domination.
It positioned
the U.S., even before the end of WWII, to lead the
imperialist
world to encircle and smash the Soviet Union and
its allies
around the world and to transform old colonial
rule over the
developing countries into imperialist rule and
domination. It
prepared the economic conditions for the nuclear
blackmail of the
peoples of the world and the series of predatory
U.S. wars
against Korea, Vietnam and others that continue
today with the
war and occupation of Afghanistan and Iraq, the
economic
blockades against Cuba, the DPRK, Zimbabwe and
others, threats of
aggression against the DPRK, Iran, Lebanon,
Somalia, Sudan,
Syria, Venezuela and many more countries striving
for
independence, and the maintenance of hundreds of
U.S. military
bases throughout the world.
Keynes became a prominent economist of the
twentieth century
fully educated and imbued with the direct
experience of monopoly
capitalism and serving its needs. This means his
ideas are marked
with the necessity to serve the monopolies in the
era of
imperialism and the proletarian revolution. They
are a clear
departure from the economists of the nineteenth
century, the
period of nascent capitalism, who would engage and
argue with
Karl Marx and his concrete analysis of capitalism.
Keynes simply
dismissed Marxist economics as wrong and would not
argue out his
differences. His role was to serve monopoly
capitalism and oppose
the necessity of moving capitalism forward to
socialism to
resolve the basic contradictions within the
capitalist system, a
system that has outlived its transitory role in
transforming
petty production of the mediaeval era into mass
industrial
production. Keynes held the working class in
complete contempt as
not capable of leading itself or society. In this
sense
politically, he was completely opposed to the
concept and
practice of democracy where the people directly
participate in
governing themselves. This contempt for the people
and democracy
was inculcated into him at Eton and Cambridge
where he was
constantly praised as brilliant and superior to
all other human
beings and deserving of wealth, prestige, power
and privilege.
The British educational system does not accept
that workers are
capable of thinking at a level sufficient to
govern themselves,
manage society and its socialized economy, and
resolve its
contradictions. This means that any attempt or
even talk of
nation-building led by the working class, which
vests sovereignty
in the people and puts at the centre the human
factor/social
consciousness, is denounced and ridiculed by the
ruling elite of
Britain and the United States and all their
institutions.
Originally published in December 2010. A trend in thinking and outlook can be found in
the
selected quotations provided below, which are followed by comments in double
parentheses. The actual practice of Keynes reveals
he is a
finance capitalist and theoretician for
imperialism and the
preservation of monopoly right and the right of
imperialism to
rule globally over the working class and oppressed
peoples with
impunity.
Direct experience has taught the working class
that during the
20th century, an avowed anti-communist such as
Keynes could not
make a positive contribution in the realm of
politics and social
policy. Someone unwilling to unite with
communists, someone full
of contempt and hatred for the working class could
not make a
positive contribution in political, social and
cultural life. In
the case of Keynes, he was not merely unwilling to
unite with the
communists, his mission became their defeat. He
became the
darling of the Labour Party whose mission was to
make sure the
British working class would remain under the
thrall of a ruling
class determined to preserve its spheres of
interest and
influence and defeat the road of the October
Revolution.
Hardened articulated stands of racism towards
others, hatred
for communism and the working class would preclude
individuals
like Keynes from making a contribution towards the
people's
well-being and general interests of society.
Anti-communism and
racism are stands of an egocentric who puts
personal prejudices
and desires, and the narrow interests of the rich
and privileged
and the status quo ahead of the rights of all,
their collectives
and the general interests of society, especially
the necessity
for change.
The quotations selected from Keynes' published
material mostly
deal with his political views. Often singular
quotes are not
enough to see a trend but in the case of Keynes,
his anti-
communism, contempt for workers and opposition to
people's active
and conscious participation in government, and his
open racism
towards non-Europeans considered inferior and
certain Europeans
are more than evident.
Readers should remember that Keynes wrote at a
time when class
divisions were extremely sharp both in Britain and
internationally with the creation of a workers'
socialist
homeland in Russia in 1917, the great stirring and
revolt of the
peoples of the colonies, the prolonged economic
crisis of the
1930s and the creation of the international United
Front Against
Fascism. Keynes consistently served the British
Empire and
imperialism during this tumultuous time and was
well rewarded for
his service to the ruling class.
After WWI and the Socialist Revolution and
creation of first
Soviet Russia and then the Soviet Union as a
homeland of the
international proletariat, imperialism centred in
Europe, the
United States and Japan demanded new arrangements
to keep the
working class oppressed, the Soviet Union
encircled and isolated,
the colonies subdued, and the monopoly capitalist
class in power
with their monopolies defended and free to expand
their empires.
The situation was unlike anything the capitalist
class had faced
before.
One trend that emerged favoured fascism with its
one-nation
politics, open suppression of the working class
movement, public
spending to militarize the society and pursue
empire-building in
an aggressive and expansionist way, challenge the
dominant
imperialist powers and re-divide the world.
Another trend was social-democracy taken up as
the variant of
liberalism to line workers up behind their own
ruling capitalist
class through public spending on big state
projects and war
preparations to defend the colonies they already
possessed and
pressure weaker or rising imperialist powers such
as Germany and
Japan to respect the status quo regarding the
division of the
world.
On the economic front, these struggles for new
arrangements
intersected in similar policies of using the
public treasury to
fund stimulus measures to defend big business from
the ravages of
the economic crisis. All the imperialist countries
began to use
public funds to save big business and their
monopolies such as
the stimulus measures of Franklin Delano Roosevelt
of the United
States, which included the Tennessee Valley
Authority, rehashed
in 2009-2010 with the Bush/Obama bailouts of the
big financial
enterprises, auto and other monopolies.
In 1930s Germany, stimulus measures using public
funds were
incorporated into the program of the national
socialists of
Hitler's Nazi Party to defend particular German
monopolies such
as Krupp and Siemens AG, build big state projects
and rearm the
country using both public funds and funds borrowed
from U.S.
finance capital.
The economic theories of Keynes dealing with
public spending
during a downturn in the business cycle were
convenient and gave
a stamp of intellectual approval for those
dominant imperialist
states charting a liberal course and also the
rising imperialist
states charting a fascist aggressive course. It is
not surprising
that intellectuals of the capitalist elite such as
Keynes would
find favour in both imperialist camps because the
reality of
monopoly capitalism is that state policies are not
based on
principles but the pragmatic needs of the moment.
In the pre- and post-World War Two period,
monopoly capitalist
states were either openly fascist or liberal
conciliators with
fascism according to their immediate
self-interest. One glaring
example occurred during WWII involving the U.S.,
Britain and the
other imperialist states that were at that time
allied with the
Soviet Union in the world war to defeat the
aggressive
imperialist axis led by Germany and Japan. Right
at the height of
the war in 1944, they forged the Bretton-Woods
fascist
international monetary agreement as a cornerstone
of their plans
to impose U.S. imperialism as the sole superpower
and use their
united financial and military power to continue
the colonial
system with new arrangements after Germany and
Japan were
defeated.
An important aspect of Bretton-Woods was to
tighten the
encirclement of their ally the Soviet Union to
weaken and
eventually destroy the workers' homeland. Keynes
was a leading
architect of this new international financial
arrangement of
finance capital, which created both the
International Monetary
Fund and the forerunner of the World Bank and
legalized usury as
a form to force tribute from the developing and
weaker capitalist
countries.
Quotations of Keynes
Views on communism, the working class and
Marx's
Capital
These quotations are selected from articles in
the New
Statesman (Republished in the booklet A
Short View of
Russia by Hogarth Press in 1925 and in Essays
in Persuasion (1931).)
Like other new
religions, Leninism derives its power not from
the multitude but from a small minority of
enthusiastic converts,
whose zeal and intolerance make each one the equal
in strength of
a hundred indifferentists.
((Such a silly notion. "A small minority of
enthusiastic
converts" would not have been able to overthrow an
imperialist
power such as Russia if the multitude of workers
and peasants had
not been prepared subjectively and
organizationally to engage in
heroic revolutionary struggle to defeat their
oppressors. Keynes
is merely expressing his contempt for the people,
who in his mind
are incapable of embarking on a conscious path of
revolutionary
struggle to move society forward to a
human-centred alternative
to capitalism. He hates anyone with a different
outlook to his.
For him the working class perspective on
economics, politics and
culture in general must be dogmatic and intolerant
because it is
so diametrically opposed to his capitalist
outlook, which in his
mind is sanctified by his long English lineage and
tradition and
is therefore the only true and normal thinking.))
How can I accept a
doctrine which sets up as its bible, above
and beyond criticism, an obsolete text-book which
I know to be
not only scientifically erroneous but without
interest or
application for the modern world? How can I adopt
a creed which,
preferring the mud to the fish, exalts the boorish
proletariat
above the bourgeois and the intelligentsia who,
whatever their
faults, are the quality in life and surely carry
the seeds of all
human advancement? Even if we need a religion, how
can we find it
in the turbid rubbish of the red bookshop? It is
hard for an
educated, decent, intelligent son of Western
Europe to find his
ideals here, unless he has first suffered some
strange and horrid
process of conversion which has changed all his
values.
((It is the "boorish proletariat" that is the
rising aspect of
the great contradiction of the capitalist world.
Keynes is
terrified that the negation of the "boorish
proletariat, the mud
and its turbid rubbish" is about to be negated
even in sweet
England and he will lose his power, wealth and
privilege to those
-- he can barely bring himself to say the word
without using an
obscenity -- those workers who create the wealth
that supports
his lavish intellectual lifestyle serving the
monopolies and the
British Empire.))
Keynes gives the following racist and
anti-Semitic
"explanation" of the character of members of the
Soviet
Union:
In part, no doubt,
[their character] is the fruit of Red
Revolution. In part, perhaps, it is the fruit of
some beastliness
in the Russian nature -- or in the Russian and
Jewish natures
when, as now, they are allied together.
((The combining of Bolshevism and Judaism as
underlining
features of those "beasts" who would destroy
European
civilization was a common theme among Hitlerite
fascists of the
day. Keynes goes a step further into racism
considering the
threat to European civilization comes from a
combining of "some
beastliness in the Russian nature" with Judaism.
This propaganda
amongst the British intelligentsia was part of the
pressure on
German imperialism to launch an assault on the
Soviet Union,
which it eventually did in 1941.
British intellectuals such as Keynes have never
accepted
responsibility for preparing European public
opinion to encourage
and even hail the German Nazis for launching their
murderous war
on the peoples of the Soviet Union, which resulted
in
unprecedented destruction and death. Their only
regret is that
the invasion did not happen before the 1939 Treaty
of
Non-Aggression between Germany and the Union of
Soviet Socialist
Republics, which was a factor in delaying the
attack until
1941.
The habit of Keynes not to argue issues out but
simply to
launch abuse and ascribe to adversaries one's own
habits is
characteristic of a fascist outlook and the
lowering of political
culture under monopoly capitalism, as distinct
from the interest
in advancing science during the 19th century. It
is the return to
medieval obscurantism and absolutism under the
cloak of being the
most advanced and erudite.))
Leninism is a
combination of two things which Europeans have
kept for some centuries in different compartments
of the soul --
religion and business. We are shocked because the
religion is
new, and contemptuous because the business, being
subordinated to
the religion instead of the other way round, is
highly
inefficient.
((Besides the contemptuous disregard for what
constitutes
Leninism, how does Keynes reconcile the fact that
the Roman
Catholic Church was for centuries the largest
landholder and
participant in European business and crusader for
spoils abroad?
The Protestant Reformation played an integral role
in preparing
the subjective conditions for the victory of
capitalism over
medieval property relations.
Leninism unmasked the hypocrisy of the Church,
especially in
Russia where it had worked hand in glove with the
most diabolical
exploiters and medieval tyrants.))
Continuing his critique of revolutionary Russia
Keynes
writes:
Comfort and habits let
us be ready to forego, but I am not
ready for a creed which does not care how much it
destroys the
liberty and security of daily life, which uses
deliberately the
weapons of persecution, destruction and
international strife. How
can I admire a policy which finds a characteristic
expression in
spending millions to suborn spies in every family
and group at
home, and to stir up trouble abroad?
((Interesting comment given that striving to
become rich and
free from the drudgery of ordinary work is the
creed of the
bourgeoisie. And how have owners of capital kept
the working
class oppressed if not through bribery of working
class leaders
using superprofits from exploitation in the
oppressed countries.
Ideological subversion is the backbone of
suppressing proletarian
revolution in Britain and all other monopoly
capitalist
countries. Keynes himself is an excellent example
of a
well-prepared indoctrinated agent of the owners of
capital
emerging from the middle strata.
The hypocrisy of Keynes is boundless. British
spying is
lionized even in films and the popular culture but
the working
class spreading its views through its own
propaganda organs and
discussions in ordinary families is "to suborn
spies in every
family and group at home." And to express social
solidarity
abroad for the rights of the peoples fighting
against the British
and U.S. Empires is characterized as "stirring up
trouble
abroad."
What Baron Keynes refers to as "stirring up
trouble abroad" is
proletarian internationalism and the working class
does not shy
away from doing its duty to support all those who
are striving to
free themselves from imperialist oppression and to
move their
societies forward to the emancipation of the
working class.
The infiltration of capitalist spies and agents
into the
peoples' movements, the specialty of the czarist
police, has been
institutionalized not only by the CIA, Homeland
Security, MI5,
MI6 and CSIS but also with non-governmental
agencies (NGOs) and
certain labour organizations and charities that
openly block the
people from taking up politics and organizing to
solve problems
in their own interests and to resolve the
contradictions facing
their societies, especially their exploitation by
the imperialist
empires.))
I can be influenced by
what seems to me to be justice and
good sense; but the class war will find me on the
side of the
educated bourgeoisie.
((Workers and their allies should remember this
"confession"
when they hear or read his name. "Justice and good
sense" and
principles are soon "suborned" by pragmatic
policies of the
"educated bourgeoisie" fighting the "class war"
against the
"boorish proletariat."))
Support for Eugenics
Keynes was an active proponent of eugenics,
having served as
Director of the British Eugenics Society from 1937
to 1944. As
late as 1946, before his death, Keynes declared
eugenics to be
"the most important, significant and, I would add,
genuine branch
of sociology which exists." (From
"Opening remarks: The
Galton Lecture (1946)," Eugenics Review, 38(1),
39-40.)
((This was not a stand from idle curiosity or
ignorance. It
was active participation in the movement for
European fascism.
During the period prior to WWII, support for
eugenics meant
support in particular for Nazism. Eugenics was
presented as "the
study and practice of selective breeding applied
to humans," with
the supposed aim of improving the species as
opposed to moving
society forward by changing the social conditions
and resolving
class contradictions.
Eugenics is a form of one-nation politics. The
ruling elite
make a determination of all those considered
acceptable to
constitute a nation of themselves based on ethnic,
religious,
political, physical and intellectual criteria. All
outside the
criteria are excluded and even exterminated as
became the policy
of Nazi Germany and today requires that all those
who do not
swear allegiance to the "values" declared
American, Canadian,
British, civilized, etc., are subjected to civil
death which is
to say that no civil rights apply to them.
During the 1930s, eugenics was most closely
associated with
the German Nazis and their political program to
cleanse Germany
of all those people considered undesirable. All
"imperfect human
beings" such as communists, Jews, Roma, Slavs,
Gays, people with
physical or mental imperfections and those
upholding values or
possessing a conscience in contradiction with
Hitler's Nazi Party
were to be deported or exterminated. British
liberal
intellectuals and others through their
conciliation with fascist
ideology such as racism, anti-communism and
eugenics have to be
held to account for the role they played in
preparing subjective
conditions for mass murder in the concentration
camps, the war
crimes committed by the German military abroad and
other Nazi
atrocities.))
Quotation from "The End of Laissez-faire"
(1926)
Marxian Socialism must
always remain a portent to the
historians of Opinion -- how a doctrine so
illogical and so dull
can have exercised so powerful and enduring an
influence over the
minds of men, and, through them, the events of
history.
((The working class has not developed its
ideology to
entertain the British intellectual elite. The
ideology is meant
to guide the working class in constituting the
nation to vest
sovereignty in the people and open the path
towards the complete
emancipation of the working class and elimination
of class
society.))
Quotations from "Essays In Biography" (1933)
I have sought with
some touches of detail to bring out the
solidarity and historical continuity of the High
Intelligentsia
of England, who have built up the foundations of
our thought in
the two and a half centuries, since Locke, in his
Essay
Concerning Human Understanding, wrote the
first modern
English book. I relate below the amazing progeny
of Sir George
Villiers. There is also a pride of sentiment to
claim spiritual
kinship with the Locke Connection and that long
English line,
intellectually and humanly linked with one
another, to which the
names in my second section belong. If not the
wisest, yet the
most truthful of men. If not the most personable,
yet the
queerest and sweetest. If not the most practical,
yet of the
purest public conscience. If not of high artistic
genius, yet the
most solid and sincere accomplishment within many
of the fields
which are ranged by the human mind.
((This quote praising dead Englishmen Locke,
Villiers and
others in the long English line is inexplicably
followed by a
snipe at communists for venerating their heroes,
leaders and
ideologues.))
All the political
parties alike have their origins in past
ideas and not in new ideas -- and none more
conspicuously so than
the Marxists.
((How can origins be found in new ideas? The
point is to
develop ideas which are consistent with the
present conditions,
which requires concrete analysis of concrete
conditions. Modern
personalities do not reject their origins found in
the struggles
and theories of the working class wherever the
people have made a
contribution including the ancient thought
material of past
civilizations. Modern personalities are not so
arrogant to
declare they arrived at the present without a past
found in the
struggles and thought material of people that have
come before
them and advanced human civilization to what it is
today. The
point however is not to dwell on the past and
ancient thought
material in the sense of turning it into dogma or
an icon but to
change the social conditions of the present and
give rise to new
thought material.
This is what Lenin did in creating the Leninist
political
party of a new type, which was qualitatively
different from the
working class organizations created by Karl Marx
and Frederick
Engels during the 19th century. And this is what
Hardial Bains
and others did within the conditions of the
betrayal of the
Leninist path set by the October Revolution. And
so it is with
CPC(M-L) and other revolutionary communist parties
that
constantly renew themselves to meet the challenges
of the
contemporary conditions that are themselves
constantly in a state
of change, development and motion.))
Quotation from "The General Theory of
Employment, Interest
and Money" (1935)
Gesell's chiefwork is
written in cool and scientific terms,
although it is run through by a more passionate
and charged
devotion to social justice than many think fit for
a scholar. I
believe that the future will learn more from the
spirit of Gesell
than from that of Marx.
((Wikipedia has this note on Silvio Gesell
(1862-1930)
so admired by Keynes: "Gesell founded his economic
thoughts on
the self-interest of people as a natural, healthy
motive to act,
which allows the individual to follow the
satisfaction of his/her
needs and to be productive. The economic system
must do justice
to this pre-condition, otherwise this system would
undoubtedly
fail. This is why Gesell called his proposed
economic system
'natural.' This stance put him in clear opposition
to Karl Marx,
who called for a change in social conditions.))
Taking selfishness
into account, Gesell called for free, fair
business competition with equal chances for all.
This included
the removal of all legal and inherited privileges.
((This admiration of Keynes for Gesell reflects
the
contradiction of economists of the era of early
monopoly
capitalism who still had one foot in the previous
period. This
contradiction is resolved with neo-liberalism,
which marks the
full-blown adherence to monopoly right over public
right and the
smashing of any illusions people may still have
that a return to
pre-monopoly capitalism is possible or even
desirable.))
Quotation from John Kenneth Galbraith, "The
Age of
Uncertainty"
Keynes never sought to
change the world out of any sense of
personal dissatisfaction or discontent. Marx swore
that the
bourgeoisie would suffer for his poverty and his
carbuncles.
Keynes experienced neither poverty or boils. For
him the world
was excellent. (Chapter
7, pg.198)
((For a Marxist, of which Marx was the first but
certainly not
the last, the world exists objectively and
subjectively as it
presents itself, no more no less. Marxists,
similar to
non-Marxists, are born into a world that is not of
their making.
Marxists accept the world as it is, analyze its
contradictions
and set about with others to organize to change
it.
Any dissatisfaction and discontent the working
class may feel
arises in part from a sense of helplessness. As
soon as workers
refuse to be victims or spectators to their own
mistreatment and
class oppression and unite and organize with
others from their
class to change the social conditions the
dissatisfaction and
discontent they may have felt is overwhelmed by
the spirit of
social solidarity and the knowledge that the
workers and their
allies are organizing and marching forward to
solve the problems
in the real world, the problems that are at the
root of their
dissatisfaction and discontent. Social solidarity
is the result
of unity in action for the same cause. It inspires
even the most
oppressed to be courageous in the face of their
difficulties.
Modern personalities, views the problems which
exist with
affection in spite of the "carbuncles," because
they can be
tackled with a program of one's own making. Having
such a program
is, in turn, the affirmation of the human
factor/social
consciousness, of life itself.))
Wikipedia writes: "The Bloomsbury Group or
Bloomsbury
Set was a group of writers, intellectuals and
artists who held
informal discussions in Bloomsbury (central
London) throughout
the 20th century... Their work deeply influenced
literature,
aesthetics, criticism, and economics as well as
modern attitudes
towards feminism, pacifism, and sexuality. Its
best known members
were Virginia Woolf, John Maynard Keynes, E.M.
Forster, and
Lytton Strachey."
Keynes is quoted by Quentin Bell in his Virginia
Woolf, A
Biography (Hogarth
Press, 1972, p. 177). The biographer Bell
relates an anecdote of Virginia Woolf, Keynes and
T.S. Eliot
discussing religion at a dinner party, in the
context of their
struggle against Victorian era morality.
At the end of the said
dinner party a disturbance reminded
Keynes 'of his theme,' and he remarked that 'the
youth had no
religion save Communism and this was worse than
nothing.' Marxism
'was founded upon nothing better than a
misunderstanding of
Ricardo,' and given time, he, Keynes, 'would deal
thoroughly with
the Marxists' and other economists, to solve the
economic
problems their theories threatened to cause.
((The economic problems the Marxists threatened to
cause are
those of the actual producers reaffirming their
right to control
the direction of the economy. They are quite
capable of finding
their own path forward through the difficulties
their affirmation
of themselves as the actual producers may cause.
This means in
part, the rejection of the thesis of Keynes and
other
capital-centered intellectuals that workers are a
cost of
production; it means demanding first claim on the
social product
of the actual producers and the satisfaction of
the claims of
society through the government before those of
owners of capital
and their minions are met; it means gradually
eliminating the
claims of owners of capital altogether. Workers
gladly accept the
challenge of overcoming difficulties these
measures may bring.
Attempts to haunt them with the ghost of Keynes
will not derail
them.))
Note
A short biography of John Maynard Keynes
(1883-1946) is available in Wikipedia where
some details
of his class origin, upbringing and public life in
service of the
British Empire are given.
(To access articles
individually click on
the black headline.)
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