Keynesian Economics

3 Points:

Keynes compares the livelihood of Europe before and after the war. He boasts about how self-sufficient Europe was, with the population secured for itself with dedicated organization and steady income of supplies. He believes the disruption of this system has contributed to the decline in livelihood.

To follow his first point, Keynes warns the population of the lurking danger of the rapid decline in the standard of living that will leave people starved, as well as mentally and physically disabled. He fears that the population’s distress will eventually disrupt the organization and lead individuals to doing whatever they can in order to satisfy their own desires.

Keynes notes that Germany, which was once an abundant agricultural state, has become completely dependent on industry. Following the economic depression, Germany will have suffered the loss of foreign investments and will be unable to import from abroad, which will ultimately lead to the diminishing of food and lives.

 2 Questions

Why does Keynes believe those who sign the Treaty are essentially “signing the death sentence of millions of German men, women and children?”

Whom or what does Keynes blame for Europe’s growing insufficiencies?

Interesting

It is clear that Keynes is vehemently against the treaty, however, I find it rather strange that he offers no possible solutions or resolutions to the problems he addresses.

2 thoughts on “Keynesian Economics

  1. Keynes believed that sometimes decisions made in the private sector of the economy lead to inefficient outcomes, which can be fixed through monetary and fiscal policies implemented by the government.

  2. Keynes believed that the signing of the Treaty of Versailles would be a death sentence to millions of Germans because he knew, as an economist, that the Germany economy would fail under the stress and demand that was placed on it by the treaty.

Leave a Reply

Your email address will not be published. Required fields are marked *