State Policy and Economic Freedom?

Keynes’ writings first and foremost struck me with their intense human element.  The subject of these essays may be inflation and deflation, but Keynes never strays far from the object of these economic patterns – the impact that the economy, and most importantly monetary and fiscal policy, have on the lives and realities of the people.  While his insights and explanations are touching on highly technical topics and overall global trends, he frequently ties them back to the benefits of well-performed policy, as well as the consequences of doing nothing.  The slogans of the philosophy of the government are “slogans of depression and decay… under their leadership we have been forced to button up our waistcoats and compress our lungs” (133).  Furthermore, poor economic conditions are “fertile soil for agitation, seditions, and revolution” (138), a comment that rings of Marxian frustrations as well.

On another interesting note was the role of government in economics that Keynes’ essays subsume.  In “A Programme of Expansion,” he explains dynamics of consumption, saving, and investment while simultaneously making a call for national fiscal and monetary plans.  In today’s political environment, government spending and market dynamics are so frequently framed as at odds.  Early in the essay, Keynes defends state expenditure by pointing out that in reference to unemployment, the government may be no different from any enterprising businessman! The mechanisms of the market operate by predictable rules, and the government is inevitably a player in this game.  But even further, the state is well-placed to, and is strongly entreated to, facilitate the growth that Keynes emphasizes is inherent in the abilities of man and Nature.  By dropping its false philosophies, false promises, and by acting – NOT by abstaining – the government can bring us to “far more wealth and economic freedom and possibilities of personal life than the past has ever offered” (133).