Let Keynes Speak For Himself

I have downloaded Chapter 24 of Keynes's General Theory.  Most of his critics have never read his book. This gives you an opportunity to be an informed critic.  One of the reasons why few, including many economists, have not read Keynes is because his writing style is rather difficult for a modern audience.  His sentences are long and complex, and his vocabulary includes terms like "the propensity to consume" which he had developed for his theory.  In any case, it worth the effort.

He wrote his book in response to the Great Depression which had raised many questions about the viability of capitalism.  In particular, Keynes was concerned about the high rate of unemployment.  He argued that the state should intervene in the economy in order to maintain a full-employment economy.  He believed that the state should take steps that would encourage the investment that was needed to reduce the unemployment rate.  That could be done while retaining the benefits of the market system.  He advocated a progressive tax system which dealt with the maldistribution of market income.  The maldistribution of income contributed to unemployment because the rich saved a larger portion of their income than the average person who spent a large share her income.  He also argued that the savings of the rich were not needed to fund business investment. That had been one of the main arguments for maintaining a system with high income inequality.

While Keynes was trying to preserve capitalism, by increasing the role of the state in the economy, his critics were numerous.  The doctrine of a self regulating market system has been difficult to dislodge.