The Economic Consequences of the Peace · Theme
Inequality and the Capitalist System
How The Economic Consequences of the Peace develops 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.
Where it surfaces
- 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.