Keynes attempted to explain why the traditional methods of the Neo-Classical school of Economics (Marshall for example) did not seem to be working to revive the Western democracies’ economies from the Great Depression.
I wonder what "theory" you believe he advocated which you believe has caused such damage? Keynes NEVER advocated continual deficits run by governments and, in fact, argued strenuously against such policies. He would not be what is considered "Keynesian".
It is also worthy of note that he warned in 1920 (In "The Economic Consequences of the Peace") about imposing the punitive Treaty of Versailles on Germany. He was dead on about that and universally ignored.
“It is also worthy of note that he warned in 1920 (In “The Economic Consequences of the Peace”) about imposing the punitive Treaty of Versailles on Germany. He was dead on about that and universally ignored.”
Wow, that’s a radical revision of history. Actually, all the best people listened to him. Aside from the General Theory, it was easily his most famous book. Because everyone believed it at the time, it has warped public opinion to this day, thus explaining your post.
He was also dead wrong. As we all know, Germany never repaid its war debts. So how could said debts have ruined them? They didn’t. Germany ruined itself. It was bankrupted in foolish attempt to avoid doing paying up.
Granted, France played a big role in said bankruptcy by vigorously enforcing the treaty. There are better ways to squeeze money out of an economy. Grow it, for one. Ultimately, though, Germany was only one of many countries sliding into depression in the 20s. It was unique in experiencing the horrors of hyperinflation, but that was nobody’s fault but it’s own.
Had Germany been dealt a true Carthaginian peace, it wouldn’t have been in a position to bankrupt itself so horribly. Unconditional surrender worked after WWII, didn’t it? That’s what was missing. The compromise peace of Versaille allowed them to preserve their pride, and pride is all one needs to ruin oneself.
“Keynes NEVER advocated continual deficits run by governments”
He did advocate them to counteract recession, yes? Funny thing happens, then, when your policies result in continual recessions. The deficits become continual all on their own.
“Keynes attempted to explain why the traditional methods of the Neo-Classical school of Economics (Marshall for example) did not seem to be working to revive the Western democracies’ economies from the Great Depression.”
In doing so he rejected not just noeclassicism but also the classical classicism of Say, Smith, and Ricardo, bringing us all the way back to the good old days of mercantilism.