Inequality and the Capitalist System

Keynes analyzes how pre-war capitalism relied on extreme inequality and the 'virtue' of saving by the rich, a psychological and social bluff that the war has exposed, threatening the entire system of accumulation.

Argues that inequality enabled vast capital accumulation, as the rich saved rather than consumed, funding railways and other infrastructure.

Keynes argues that inequality was essential for capital accumulation, as the rich saved most of their income, and the poor were compelled to accept a small share.

Inflation arbitrarily redistributes wealth, enriching profiteers and impoverishing the bourgeoisie, undermining confidence in capitalism.