Another person might have left the party after receiving such treatment. In particular, advocates of Keynesian policies – of government stimulus, state spending, and top-down economic management – feel that their ideas have finally been proven correct. Dobb was not among them. In 1932, CPGB higher-ups had initiated a campaign designed to punish Dobb for perceived violations of the party line. And neither creates demand, but merely shifts it around the economy. Unemployment even went up. Already on our list? Keynes had never taken Marxism seriously, and for the most part he never would. He was, after all, correct that Keynes harboured no aspirations for capitalism’s overthrow. Overnight, a laissez-faire Tory government has turned towards unprecedented state intervention in the economy, promising £330 billion (15% of GDP) to help small businesses and homeowners, and a limitless amount to subsidise workers’ wages. Governments everywhere are pumping money into the world economy to keep it on life support. “There need be no more unemployment,” stated Keynes. the practical possibility of leading society out of contemporary chaos.” Dobb filled his schedule with party work that left him little time to reflect on what the CPGB had done to him. Where this is not the case, then this is a recipe for inflation and instability. But he never moved beyond the materialism that, despite protests to the contrary, framed his thinking about politics. Desperate times call for desperate measures. The term “Keynesian Revolution” itself was popularised not by one of their own but by Lawrence Klein, a native of Omaha and a product of MIT’s PhD program. His 1930 prediction that economists would either rediscover “the macroscopic problems of society” or retreat into irrelevance by maintaining an obsession with “microscopic phenomena” went unfulfilled. In 1925, there was one Marxist, in particular, that he had in mind when he set down his thoughts on the USSR — one person he was winking at when he shuddered at the horrid conversions, one person who would have seen the jab as the latest move in a long-running argument. Yet that was not the only purpose Keynes’ work had been made to serve. Keynes’ emphasis on capitalism’s instability was lost among soothing assurances that growth was all but guaranteed, and that even aggressive countercyclical spending would only be needed in emergencies, like oxygen masks in airplanes. Argument Socialism’s Biggest Hero Is a Bourgeois British Capitalist John Maynard Keynes felt little solidarity for workers and inspired a century of establishment economics. His concern was less that workers might eat, and more that they might buy and consume, thus providing a market – the ‘effective demand’ – that the capitalists required in order to sell their produce and make a profit. Keynes had just returned from his first trip to the USSR, and he was ready to wax polemical. Throughout, he displayed a creativity and intellectual dexterity that proved Marxism was a vital, living tradition. It is as simple as that. He did not reach a settled position on Keynes until after World War II, and even then he was reluctant to make his views known. Even as a teenager, Dobb was committed to uniting political activism with intellectual engagement. Keynes does not provide a concrete source backing his words but deliberately used the phrase “is said to have declared.” For a good reason. This was the dawning of the age of the wonk, and amidst growing armies of experts — demographers, agronomists, mathematicians, anthropologists, international relations theorists, and many more each contributed their share — economists had a special value. On virtually every other subject, it was almost impossible to stop him from expressing himself. پاکستان: کامریڈ امر فیاض کی بازیابی کیلئے پوری دنیا میں سالیڈیریٹی کمپئین جاری, လီနင်ရေးတဲ့ “ငါတို့ ဘာလုပ်ကြမလဲ” ကျမ်းမှ ရရှိလာသော တော်လှန်ရေး သင်ခန်းစာများ, The English Revolution: the world turned upside down, Rise of the Comintern and the role of Trotsky, Over 30 million have lost their jobs in America already, one million applied for Universal Credit in the space of just two weeks, Already, trillions have been promised by the advanced capitalist countries alone, promising £330 billion (15% of GDP) to help small businesses and homeowners, and a limitless amount to subsidise workers’ wages, declared one writer in the Tory mouthpiece, the Telegraph, this time in the Conservative journal, the Spectator, rehash of the ideas of John Maynard Keynes, successfully utilise about 80-90% of its productive abilities, Review: ‘The Deficit Myth’ – two wrongs don't make a right, Marxism, Keynesianism, and the crisis of capitalism. And in all likelihood, this is only the tip of the iceberg in terms of what will be required to avert a complete market meltdown in the weeks and months ahead. Marx is supposed to have guided the aims and policies of the Russian government since the Communist Party came to power in 1917 and Keynes ’ preaching of full employment and the way to achieve it has been more or less closely followed by most of the political … Political leaders had long sought to achieve prosperity, but the identification of prosperity with a steadily growing economy was a recent invention. ABSTRACT: This paper examines John Maynard Keynes’s ethical theory and how it relates to his politico-economic thought. But these are only temporary measures, “paving the way,” in the words of Marx, “for more extensive and more destructive crises” in the future. Money is only a representation of value. Even if we need a religion, how can we find it in the turbid rubbish of the Red bookshops.” “It is hard,” he concluded, “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.”. . No economist — maybe no human — has ever been better at scorn than John Maynard Keynes. He correctly identified – as Marx had done many decades before – that the ‘invisible hand’ of the market was not omnipotent; that supply and demand would not always match in perfect ‘equilibrium’. As Frank W. Fetter (1899–1991) pointed out, there is no evidence at hand that Lenin actually said or wrote these words, and anyone quoting Lenin on inflation would be indeed be referring to Keynes’s opinion. In particular, his most famous work – his General Theory – was a direct response to the Great Depression, and the mass unemployment seen in America, Britain, and across Europe at the time. Only with the onset of the Second World War and the mopping up of workers into the army and the arms sector did unemployment fall. Of course, if society’s needs are not being provided and produced by the private sector, then the government can step in and provide them directly through the public sector. These must either fall on the capitalist class, which bites into investment. In reality, it is not much of a theory. 21st congress of Italian Marxists: an exceptional time to be a revolutionary! Similarly with government borrowing. Soon not even Keynes could shrug off class conflict. A full explanation opens up a much broader, though largely unknown, history — a history whose ramifications we still live with today. In 1925, sympathisers with the Soviet Union were treated to a world-class exhibition of this disdain. But, like the proper scion of Britain’s elite that he was, Keynes preferred to laugh at his enemies. This falls to 70% or less in times of slump. Now is not the time for the wiley charms of charlatans and snake-oil salesmen. / Image: public domain. Ditto with their contemporary acolytes: those who subscribe to ‘Modern Monetary Theory’ (MMT) – promoted by leading lights of the Democratic Party in the USA, such as Alexandria Ocasio-Cortez (AOC), and by influential economic advisors in the British labour movement. With interest rates at 0%, monetary policy has reached its limits. Many observers cannot believe their eyes. Similarly, today, many are remarking that “we are all socialists now”, as big business governments everywhere throw free-market orthodoxy out of the window in an effort to save the system. 2017 Political Economy Seminar Series. It was a strange decision, since from almost any perspective Dobb seemed a model Communist. In other words, governments should spend where private business would not, in order to ensure that workers had money in their pockets to spend. This was not what Dobb had envisioned in 1930 when he called for a revival of political economy, but he acknowledged that it offered a “breath of fresh air” in an otherwise stifling environment. In part, his voluntary exclusion was a matter of academic politics. Yet Dobb’s analysis, right as far it went, was insufficient — powerful but too easy. But Dobb himself was too occupied with the impending revolution to bother with the details of a present he assumed would soon be consigned to history. Whilst no fan of socialism, Keynes was critical of the so-called ‘free market’. And public debts are already sky-high from bailing out the banks during the last global crisis. In other words, all this money will end up in the hands of profiteering parasites. Marxism noted that a lot of workers refrain from joining unions and strikes, and raised the question of how workers come to have a false consciousness. He correctly identified – as Marx had done many decades before – that the ‘invisible hand’ of the market was not omnipotent; that supply and demand would not always match in perfect ‘equilibrium’. Dobb also had a powerful intellectual argument for keeping his distance from Keynes. They merely state that ‘excess capacity’ is the result of a lack of effective demand. If anyone could have forged a union between Keynes and Marx, by all rights it should have been Dobb. Instead, the discipline followed a third path by redefining macroscopic. Businesses are not investing because there is not enough demand for the goods they produce. But neither can diagnose this disease correctly, nor offer a genuine cure. This is the real problem with reformist demands like UBI, which do nothing to challenge the power of the capitalist class. Marx referred to the latter as the "base" and the former as the "superstructure"; one does not have to agree with this metaphor or with the priority it implies to see that it is a fruitful conception. He was also a committed Marxist and a member of the Communist Party of Great Britain.No economist — maybe no human — has ever been better at scorn than John Maynard Keynes. How can I adopt a creed which, preferring the mud to the fish, exalts the boorish proletariat above the bourgeois and intelligentsia who, with whatever faults, are the quality of life and surely carry the seeds of all human advancement? that capitalism is inherently unable to find a market for all the commodities that are produced. Only by bringing in common ownership over the means of production and implementing a socialist economic plan can we satisfy society’s needs. Einaudi’s History of Marxism was entirely devoted to the “old” macro-monetary circuitism, from Wicksell to Keynes’s Treatise on Money. Whatever the forum, he offered staunch defences of the Soviet Union in general and Stalin in particular. But it cannot print teachers and schools, doctors and hospitals, or engineers and factories. After his painful reminder of the importance of demonstrating his commitment to the cause, and with so many other duties agitating for his attention, it was easy to let mastering The General Theory fall to the side. In essence, the Keynesian explanation of crisis is a theory of “under-consumption” – i.e. And since socialism rejects the general rules of private property, the Keynesian ethical theory is consistent with socialism. Britain: foreign aid – the smiling face of imperialism. No problem, we’ll just print money. For example, all other things being equal, if the government prints two notes where there was one previously, this devalues the currency by half, and therefore prices in the economy will double. If you want more information about joining the IMT, fill in this form. At the end of the day, there is no such thing as a free lunch when it comes to capitalism. At a similar time of crisis in the early 1970s, Republican US President Richard Nixon was said to remark that “we are all Keynesians now”, as his administration turned towards expansionist economic policies. There, as he had in the 1950s, Dobb admitted that The General Theory had stripped economists of some of their most pernicious delusions, but he still insisted that Keynes had left much more of the edifice of mainstream economics intact than his incendiary rhetoric let on. Conveniently enough, this position excused Dobb from figuring out the details of those reforms. The Great Depression ended all that, launching Keynes on what he referred to as a “struggle of escape” from his prior beliefs. Though Dobb considered himself an inheritor of a noble tradition of political economy, he was a political economist who did not take the political seriously. In his view only “a wealthy community will have todiscover much ampler opportunities for investment if the saving propensities ofits wealthier members are to be compatible with the employment of its poorermembers” . To Dobb, it all seemed a waste of time. Articles in the party press condemning his work proliferated under headlines line “Maurice Dobb’s Distortions of Marxism.” These public chastisements were coupled with a deeply personal indictment from his comrades in the CPGB’s Cambridge chapter. Where the capitalists cannot make a profit, they will not produce. Easy – just add it to the bill! Even Keynes himself was forced to admit defeat. State spending ultimately must be paid out of taxation or out of borrowing. Economic debates between the Right and Left came to centre, as Dobb saw it, “merely as to whether half a million or a million and a half unemployed will suffice to restore the capitalist mode of production to an even keel.”. What was so special about Keynes? Decades afterward, Dobb would remember with affection that even wariness of socialism and ignorance of the USSR could not stop Keynes from lecturing Soviet officials on monetary policy. The solution, Keynes asserted, was for the state to step in any make up for the shortfall in demand. Those of us who still believe in the promise of universal emancipation cannot afford to make the same mistake. But he soon had second thoughts and sloughed off the duty to Brian Pollitt, one of his students (and the son of the longtime head of the CPGB). It ranged across an intimidatingly vast array of subjects: value theory, the legacies of classical political economy, the origins of economic crises, the character of imperialism, and the laws governing a socialist economy, to name a few. The anarchy of the market is untouched. But you cannot plan what you do not control. Similar to Marx, although Keynes denies any Marxian influence, Keynes moves his analysis of the economy beyond the barter system and real analysis and attempts to understand the dynamics of a monetary production economy. At the same time, it is also important to recognise the differences between these (failed) Keynesian experiments of the past and the measures being enacted by policy makers and world leaders today in similarly desperate circumstances. At the present time, however, the aim is not so much to boost demand; after all, production is largely paralysed by the pandemic. Marxism, Keynesianism, and Modern Monetary Theory In this talk from Revolution Festival 2019, Adam Booth - editor of www.socialist.net - compares and contrasts the economic ideas of Karl Marx, John Maynard Keynes, and MMT. “The use of MMT [and Keynesianism in general] is akin to pumping up a flat tyre,” remarks Larry Elliott, economics editor of the Guardian. 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