Keynes and The Treaty of Versaille

John Maynard Keynes was an economist in Great Britain during World War I. Keynes also served as a representative of the Treasury of Great Britain and was an outspoken member at Versailles. Since Keynes was an economist he saw the consequences that the sanctions on Germany would do not only to their economy but what it would do to the rest of the world economy. He saw that since Germany would have to pay large sums of money they would not be able to provide for their people and Germany was already facing food shortages because of the Allied blockade. The food shortages and debt sanctions would not allow Germany to import goods, most of Germany’s economy is industrial, and cause the other surrounding economies to suffer the consequences of peace. Keynes stated that instituting this treaty, which would not only force Germany to take drastic measures but would result in the endangering of millions of German people. We can look at Keynes’ argument and know it is strong because of our hindsight that tells us what kind of state Germany becomes in the future.

One thought on “Keynes and The Treaty of Versaille

  1. The issue that always bothers me with these “predictions of the future” is that we as historians always forget the incorrect predictions. For every Keynes supporter, there were another who supported the punitive measures imposed by the Treaty of Versailles. While Keynes makes a valid point about rebuilding Germany as a nation in order to promote unity within Europe, at no point does he state that by not rebuilding Germany, Europe would face another world war. In essence, Keynes’ foreboding is all about economic downturn and the impact it would have on Europe, nothing in regards to the politics of Germany.

Leave a Reply

Your email address will not be published.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