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Keynes and Capitalism

Correspondence: Correspondence may be addressed to Roger E. Backhouse, University of Birmingham, Edgbaston, Birmingham B15 2TT, U.K. (e-mail: r.e.backhouse{at}bham.ac.uk); and Bradley W. Bateman, Office of the Provost, Denison University, Granville, OH 43023 (e-mail: batemanb{at}denison.edu). We thank two anonymous referees for comments on an earlier draft of this essay. All remaining errors are the responsibility of the authors. The unpublished writings of J. M. Keynes copyright The Provost and Scholars of King's College Cambridge 2009.

We analyze Keynes's thoughts on capitalism by focusing on what he wrote on the topic, using the Collected Writings, taken as a whole, together with some unpublished material to tackle three issues: what Keynes meant by capitalism; the fragility of capitalism; and the morality of capitalism. In doing this, we juxtapose materials written at different stages of his career. While the context and the theoretical framework within which Keynes developed his economic thinking changed substantially, our argument is that beneath these many changes in his circumstances and analytical frame lay a remarkably consistent attitude toward capitalism, an attitude in which morality was central. This view of capitalism is linked with the personal values that animated his life, especially the values that he shared with the other members of Bloomsbury.

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