The Economic Consequences of the Peace · Question
How does The Economic Consequences of the Peace develop the theme of Inequality and the Capitalist System?
Answer
The Economic Consequences of the Peace by John Maynard Keynes develops Inequality and the Capitalist System across the chapters the companion marks for this theme.
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.
Evidence in the book
- Europe Before the War
Argues that inequality enabled vast capital accumulation, as the rich saved rather than consumed, funding railways and other infrastructure.
- III: The Psychology of Society
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.
- VI: Europe After the Treaty
Inflation arbitrarily redistributes wealth, enriching profiteers and impoverishing the bourgeoisie, undermining confidence in capitalism.
