Definition & Reality in the General Theory of Political EconomyCool, Thomas (Thomas Herman Anthonius Maria)
Science
Definition & Reality in the General Theory of Political Economy
Cool, Thomas (Thomas Herman Anthonius Maria)
Economics; Political science
Keynes is an amazing person also on the following. Skidelsky makes
another important point about Keynes’s role in the aftermath of the
First World War in turning people’s attention from geopolitical power
to economic growth:
“None of this is to deny that _The Economic Consequences of the Peace_
was a very influential book. Of the dozens of accounts of the Treaty
which appeared in the 1920s it is the only one which has not sunk
without a trace. It captured a mood. It said with great authority,
flashing advocacy and moral indignation what ‘educated’ opinion wanted
said. It also had an influence at a deeper level. Wickham Steed was
right: it was a revolt of economics against politics. The war had been
fought in the name of the nation, state, emperor. These, Keynes argued,
were false gods, from whom he sought to divert allegiance towards
economic tasks. It was a message calculated to appeal to the nation of
Cobden and Bright, once it had recovered of its intoxication with
military victories. It helped form the outlook of a new generation. The
nineteen-twenties saw a new breed of economist-politician, who talked
about the gold standard and the balance of trade as fluently as pre-war
politicians had talked about the Two-Power standard and the balance of
power. (…) The idea that the creation of opulence was the main task of
rulers was born in 1919 though it came of age only after the Second
World War.” Skidelsky (1983:399). [15]
Reading this, one would tend to think that there still is a risk when
politicians get involved with the economy.
The Trias Politica setting is usefully limited to the nation-state.
However, if we were to limit our attention to the nation-state, could
we really neglect the external conditions ? One would think not. A
crucial chapter in the theory of the nation-state concerns the external
relations: trade and war by tradition, and then, in our age: the risks
of world population growth and of environmental disaster, i.e. risks
that may spill over across the border. Wise managers would not close
their eyes to external risks. Hence, though this book concentrates on
the situation in the Western democracies, we also regard the
non-democracies in the developing world.
Projections for the future indicate such external risks:
“The Global Crisis scenario (...) explores the risks and dangers of a
neglect of, and late response to regional and global challenges (...)
the world may end up in the throes of widespread distress, an
eco-crisis, which can only be corrected at high cost. The policy
message conveyed by this scenario is abundantly clear. Dismissing this
scenario as unduly gloomy and pessimistic is in our view, absurd; such
a statement would be tantamount to a complete denial of large segments
of twentieth-century history.”
_Centraal Planbureau,_ “Scanning the future”, SDU 1992:211
Public-domain text, read in full here on John Shaqi.
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