Keynes’s World (A Capitalist Utopia)

The fact that the economic scarcity of certain individuals is an artificial condition, related to class divisions, should have been perfectly clear to Keynes. Already a century earlier, the Swiss economist Sismondi had been shocked to see first-hand how miserable workers in England were despite the tremendous advances in the output of production. The artificial nature of “scarcity” under capitalism becomes even clearer during a crisis, when factories remain idle because production is not profitable and commodities rot on shelves for a lack of customers.

Keynes wrote his article at the outset of the Great Depression, so he could not completely ignore the mass unemployment of the time. Yet, in his article, unemployment is dismissed as “growing-pains from over-rapid changes” or a “temporary phase of maladjustment.” He was confident that in the long run things would work out, which is a bit rich coming from a man who reminded us that “in the long run we are all dead.” Today, more than 75 years later, these growing pains continue. The “scarcity” resulting from unemployment seems unlikely to end any time soon.

Keynes’s way of framing the problem in terms of scarcity, and finding the solution in increased production, only makes sense if it is assumed that we are already dealing with a socialist society. That is, in socialism, where there is social ownership of the means of production and the aim of production is to directly meet human needs, any expansion of material production or increase in labour productivity would potentially raise the standard of living for every member of society.

Things are a bit different under capitalism. We know from experience, for example, that the introduction of new technologies or increased productivity will not necessarily result in a shorter working day or improved standard of living. This seemingly illogical state of affairs is not surprising when we consider that technical improvements are only made to gain a competitive advantage that will result in higher profits.

Keynes chooses to ignore the obvious fact that the pursuit of profit underlies technical innovation, making it seem instead as if every increase in production under capitalism will directly raise the standard of living for the population as a whole, bringing us that much closer to the end of scarcity.

Neighbourly thinking

How will we know when economic scarcity has become a thing of the past? Keynes writes: “The course of affairs will simply be that there will be ever larger and larger classes and groups of people from whom problems of economic necessity have been practically removed. The critical difference will be realised when this state of affairs becomes so general that the nature of one’s duty to one’s neighbour is changed.”

He argues that the number of affluent members of society will increase to the point that people’s way of thinking changes. Instead of being “economically purposive” (selfish), people will be generous towards each other. It is not at all clear, however, how “general” this state of affairs will have to be for a magical transformation in consciousness to take place.

The absurdity of Keynes’s dream speaks for itself. Why would a person suddenly begin acting in a neighbourly fashion one day, if the competitive system that had fostered his avarice were still very much in place? Moreover, it takes considerable wealth today for a person to be able devote his or her “energies to non-economic purposes.” And even those able to retire from the business world, to engage in philanthropy and the like, appoint other “economically purposive” characters to manage their affairs. At any rate, few people are satisfied even after their “absolute needs” have been met, and most seek to accumulate a bit more just to be on the safe side. It should be obvious that the general way people think and behave will only fundamentally change once we are free of the insecurity that the competitive capitalist system breeds.

To his credit, Keynes does seem a bit disgusted by the selfish way people act under capitalism in its present form. But in a strange twist of logic, he argues that selfish behaviour will some day set us free from selfishness. In fact, he warns us not to start acting too generous, too soon: “But beware! The time for all this is not yet. For at least another hundred years we must pretend to ourselves and to every one that fair is foul and foul is fair, for foul is useful and fair is not. Avarice and usury and precaution must be our gods for a little longer. For only they can lead us out of the tunnel of economic necessity into daylight.” Apparently, the road to paradise is paved with bad intentions.

“Economic bliss”

Keynes’s depiction of what he jokingly refers to as “economic bliss” is very brief, but he does manage to effectively contrast the stunted nature of present-day life with a far more civilised existence in the future. He notes, for example, that people will begin living for the sake of enjoying the present, rather than endlessly accumulating for tomorrow. Instead of the fawning over the rich, people would value those “who can teach us how to pluck the hour and the day virtuously and well, the delightful people who are capable of taking the direct enjoyment in things.”

Keynes also points out that even after we are free of economic scarcity, many people will have a strong desire to work. He suggests, for instance, “three-hour shifts or a fifteen-hour week” would probably be “quite enough to satisfy the old Adam in most of us!” It is not clear whether this work is actually necessary, or just a way for people to occupy their time, but Keynes is right to suggest that work can be a source of human satisfaction (if taken in the proper dosage), which refutes the idea that no one would bother to work in socialism.

Compared to the joie de vivre that characterizes life in his future world, Keynes says that today’s love of money “as a possession” would seem a “somewhat disgusting morbidity, one of those semi-criminal, semi-pathological propensities which one hands over with a shudder to the specialists in mental disease.” And he looks forward to the day when “all kinds of social customs and economic practices” that are “distasteful and unjust” can at last be discarded. Although, true to form, he feels obliged to remind us that such habits are “tremendously useful in promoting the accumulation of capital,” which is his motive force of history.

Many of Keynes’s observations, ironically enough, are applicable to life in socialism, but his clear assumption is that the system of production from the days of economic scarcity remains more or less intact. Even though money will no longer be loved as a possession, it will still be cherished “as a means to the enjoyments and realities of life.” In other words, people will still have to pay for whatever they consume. This naturally means that products are produced as “commodities” for exchange, and therefore the means of production are in the hands of private individuals or groups of individuals. Keynes even admits that there will be people in the future with “intense, unsatisfied purposiveness who will blindly pursue wealth,” although he assures us that we “will no longer be under any obligation to applaud and encourage them.”

In short, Keynes looks to a future where people are generous and enjoy life to the fullest even though production is carried out with profit in mind and money still makes the world go round. To which socialists can only respond: Dream on!

MICHAEL SCHAUERTE