Modern Day Economics

Was J.M.Keynes - Really The Greatest Economist?

Keynes was brilliant at many things and he knew it. Once he was placed second in an economics exam. His only reply was that:

“That shows I know more economics than the examiner.”

Keynes didn’t just restrict himself to economics; he wrote a book on mathematical philosophy (highly praised by Bertrand Russell). He was also a leading figure in the Bloomsbury group of leading artists, poets and writers. Keynes later even opened his own theatre, which like most things he tried his hands at, proved a great success. Keynes was no socialist but this didn’t stop him from poking fun at free market economists. In direct challenge to the optimistic assertion of Adam Smith, Keynes took a different view.

“Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.”

This shows Keynes at his best - happily attacking orthodox views with a panache and confidence that was hard to resist. Keynes may have had many human weaknesses but he was able to brush these aside with his evident genius and enormous capacity for innovation and radical ideas.

It was the effects of the Great Depression that led Keynes to his greatest work. He scoffed at the orthodox free market economists who said the government should do nothing in the face of mass unemployment.

Keynes’s strategy was for the government to intervene, borrowing if necessary. This would create jobs, which would give income for others to spend thus creating more jobs. A deceptively simple idea, but too radical for western governments who were unwilling to borrow. Unfortunately it wasn’t until the onset of the Second World War that employment increased to pre 1929 levels. By the end of the war Keynes was given high regard and he was put in charge of the economic planning for post-war Europe. Unfortunately on achieving worldwide fame he died untimely at the early age of 62. However he has left a profound mark, helping to create a whole sub section of economics (Macro Economics)

More on Economics at: http://www.economicshelp.org/

Richard is an economics teacher in Oxford and member of the Sri Chinmoy Centre. Richard updates a blog about the UK economy and Mortgages. He would be a great help to those of you who are doing science fair projects on math.