This paper examines some problems in Keynes's social philosophy. Especially, we consider what economic system Keynes envisioned by focusing on themes of freedom, planning and socialism.
In
The Economic Consequence of the Peace (1919), Keynes recognized that the foundation of existing social order was fragile. From this perspective, he turned to reject
laissez-faire capitalism. Nevertheless freedom continued to be the essential principle for his thought. In short, he thought that freedom was to be defended, although
laissez-faire could not do this task. Therefore Keynes advocated introducing some elements of planning to defend freedom. Namely
laissez-faire was not a sacred element of liberalism for him.
Keynes was opposed to national socialism. It was not because he did not sympathize with socialistic intentions and purposes, but because he considered that Marxism was an old-fashioned doctrine and it could not overcome the distress of Britain in those days. Keynes called his own political belief ‘liberal socialism’ or ‘new liberalism’. It meant the system which was based on private ownership of the means of production and was characterised by active interventions of the state. The policy for this vision was a ‘socialization of the investment’. Keynes attached importance to the freedom of individuals and the diversity of life above all. Hence he finally prefered to defend the free enterprise system, and tried to reform it.
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