John Maynard Keynes
Keynes, Elitism, and Social Democracy
John Maynard Keynes
John Maynard Keynes was a British economist and political philosopher, best known for his work in the first half of the 20th century, which ultimately would reshape the study of economics for decades following. Keynes believed ultimately the role of the state is to uphold the public good by ensuring full employment and addressing wealth inequality with equitable wealth distribution. In contrast to his equitable and broadly inclusive economic positions, Keynes beliefs on who should have power are quite exclusive. Keynes advocated that the electorate should be restricted to “a few wise people” and emphasized the necessity of intelligence and “governance by the best.”
The Economic Consequences of the Peace
Published in 1919, the Economic Consequence of the Peace is one of Keynes first explorations in politics. In it, Keynes criticizes the Terms of Peace reached at the end of World War I and argues that the “punitive reparations” demanded of Germany were unfair, and far too great. Keynes argued that the terms would keep Germany “perpetually poor and, therefore, politically unstable.” Ultimately, he was proven right with the outbreak of World War II.
Keynes believed that unregulated markets had failed society by failing to secure full employment and by arbitrarily and inequitably distributing wealth and income. Having identified these failures he advocated for government interventions in the economic short run, not only to stabilize the economy in periods of economic downturn, but also to promote the “public good,” which would include regulating markets which are behaving in undesirable destructive ways, limiting unemployment, and perhaps even small redistributive efforts, though not at the scale which more radical activists would suggest. Keynes’ view on the role of the state as the promoter of the public good is at the heart of modern social democracy, but Keynes did not wholly embody the spirit of social democracy. His view on who should vote and ultimately govern puts him at odds with most modern democratic theorists who would advocate for inclusive electoral policy.
Keynes, Schumpeter, and Elitism
Many critics of Keynes deride him as an elitist, argue that his views are undemocratic, and liken him to Joseph Schumpeter, a democratic theorist who like Keynes had a relatively minimalist conception of democracy in which the voting population could be limited significantly. Schumpeter went farther than Keynes, arguing that the demos could be limited by sex, religion, economic status, and possibly even race. While Keynes did argue in favor of limiting who can vote, he focused on capability rather than immutable characteristics. He believed that in order for government to be successful, then those who govern must be the best and most intelligent people possible. He was frustrated by closed mindedness and ignorance, and also expressed distrust in authority, alluding to “madmen in power” who abused their authority. Keynes argued therefore that in order for government to be both moral and effective, only the most intelligent people should govern.