John Maynard Keynes Quotes (1883-1946)

“In my opinion it is a grand book … Morally and philosophically I find myself in agreement with virtually the whole of it: and not only in agreement with it, but in deeply moved agreement.”

“The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelope our future.”

“Thus public works even of doubtful utility may pay for themselves over and over again at a time of severe unemployment, if only from the diminished cost of relief expenditure.”

“Nevertheless the theory of output as a whole, which is what the following book purports to provide, is much more easily adapted to the conditions of a totalitarian state, than is the theory of the production and distribution of a given output produced under conditions of free competition and a large measure of laissez-faire.”

“The book, as it stands, seems to me to be one of the most frightful muddles I have ever read, with scarcely a sound proposition in it beginning with page 45, and yet it remains a book of some interest, which is likely to leave its mark on the mind of the reader. It is an extraordinary example of how, starting with a mistake, a remorseless logician can end up in bedlam.”

“Whilst... the enlargement of the functions of government, involved in the task of adjusting to one another the propensity to consume and the inducement to invest, would seem to the nineteenth-century publicist or to a contemporary American financier to be a terrific encroachment on individualism, I defend it, on the contrary, both as the only practicable means of avoiding the destruction of existing economic forms in their entirety and as the condition of the successful functioning of individual initiative.”

“The composition of this book has been for the author a long struggle of escape, and so must the reading of it be for most readers if the author's assault upon them is to be successful,—a struggle of escape from habitual modes of thought and expression. The ideas which are here expressed so laboriously are extremely simple and should be obvious. The difficulty lies, not in the new ideas, but in escaping from the old ones, which ramify, for those brought up as most of us have been, into every corner of our minds.”

“Economics is a science of thinking in terms of models joined to the art of choosing models which are relevant to the contemporary world. It is compelled to be this, because, unlike the typical natural science, the material to which it is applied is, in too many respects, not homogeneous through time. The object of a model is to segregate the semi-permanent or relatively constant factors from those which are transitory or fluctuating so as to develop a logical way of thinking about the latter, and of understanding the time sequences to which they give rise in particular cases. Good economists are scarce because the gift for using "vigilant observation" to choose good models, although it does not require a highly specialised intellectual technique, appears to be a very rare one.”

“How can I convey to the reader who does not know him any just impression of this extraordinary figure of our time, this syren, this goat-footed bard, this half-human visitor to our age from the hag-ridden magic and enchanted woods of Celtic antiquity?”

“In vulgar modern terms Newton was profoundly neurotic of a not unfamiliar type, but... a most extreme example. His deepest instincts were occult, esoteric, semantic — with profound shrinking from the world, a paralyzing fear of exposing his thoughts, his beliefs, his discoveries, in all nakedness to the inspection and criticism of the world. ...Until the second phase of his life, he was a wrapt, consecrated solitary, pursuing his studies by intense introspection.”

“The death... is a heavy loss—though his primary interests were in Philosophy and Mathematical Logic—to the pure theory of economics. ...If he had followed the easier path of mere inclination, I am not sure that he would not have exchanged the tormenting exercises of the foundations of thought, where the mind tries to catch its own tail, for the delightful paths of our own most agreeable branch of the moral sciences, in which theory and fact, intuitive imagination and practical judgement, are blended in a manner comfortable to the human intellect.”

“The way to crush the bourgeoisie is to grind them down between the millstones of taxation and inflation.”

“I regard Mr. Hawtrey as my grandparent and Mr. Robertson as my parent in the paths of errancy, and I have been greatly influenced by them.”

“Jevons saw the kettle boil and cried out with the delighted voice of a child; Marshall too had seen the kettle boil and sat down silently to build an engine.”

“Good economists are scarce because the gift for using "vigilant observation" to choose good models, although it does not require a highly specialised intellectual technique, appears to be a very rare one.”

“The book, as it stands, seems to me to be one of the most frightful muddles I have ever read, with scarcely a sound proposition in it beginning with page 45, and yet it remains a book of some interest, which is likely to leave its mark on the mind of the reader. It is an extraordinary example of how, starting with a mistake, a remorseless logician can end up in bedlam.”

“His [Keynes's] own leisure was admirably as it was variously employed: in inspecting his pigs; in attending a sale of pictures; in perusing (unlike some bibliophiles) a minor Elizabethan poet, his latest acquisition; in listening to a piano recital, recumbent in a box of the theatre he had built; in gossip and good talk and a glass of wine. ‘My only regret’, he said at the close of a College feast, ‘is that I have not drunk more champagne in my life.’ And so it was that he knew what leisure could give and desired that all should share the gift.”

“Following the financial crisis of September 2008 when the American investment bank Lehman Brothers collapsed, threatening to engulf the entire banking system, the British economist John Maynard Keynes returned to center stage. In the popular press and in the writings of many economists, Keynes featured prominently as governments around the world urgently sought ways to avoid economic collapse.”

“Keynes was a man of prodigious intellectual gifts, who straddled the worlds of banking, politics, the City, journalism and the arts, playing a significant role in all of them. But that doesn't express the nub of his attitude to the world and to human behaviour. What I admire is his belief in the moral responsibility of society towards its members, an attitude he brought to bear on his economic theories.”

“In 1920, regrets and apprehensions about the treaty's alleged severity found expression in a book which was to exercise an immense and far-reaching influence; indeed eventually largely to determine the British governing classes' view of the treaty, and of the treatment of Germany under its provisions. The book, The Economic Consequences of the Peace, was written by J. M. Keynes, an economist of genius, but also very much a precious intellectual typical of the period...a nonconformist by upbringing, a conscientious objector during the war, a liberal, a man of spinsterish personality... The Economic Consequences of the Peace was, except when dealing specifically with economics, simply a moral tract, hot with emotion, which took no account of strategy or the balance of power. Its central argument that the Versailles Treaty was a Carthaginian peace was itself sentimental nonsense, for, in the first place, the treaty was, as the French feared at the time, not Carthaginian enough adequately to reduce German power; secondly, it was extremely lenient in comparison with the peace terms which Germany herself, when she was expecting to win the war, had had in mind to impose on the Allies; and thirdly it was hardly more than a tap on the wrist compared with the peace Germany did in fact impose on Russia at Brest-Litovsk in March 1918... However, it was in the very shortcomings of Keynes's book – its sentimentality, its moral indignation, its sense of guilt, its lack of strategic comprehension – that lay its particular appeal and guaranteed its immense, far-reaching and catastrophic success... For by the early 1930s the Keynesian view of the Versailles Treaty had become to seem the only one an educated, intelligent, liberal-minded man could possibly hold.”

“After careful research along these lines, I came to the annoying conclusion that Keynes had been 100 percent right in the 1930s. Previously, I had thought the opposite. But facts were facts and there was no denying my conclusion. It didn’t affect the argument in my book, which was only about the rise and fall of ideas. The fact that Keynesian ideas were correct as well as popular simply made my thesis stronger.”

“I think it is pretty hard to explain most governments’ responses to the crisis and recession without a healthy dose of Keynes.”

“With all his beguiling power of expression and great, but disorderly force of intellect, Keynes will be best remembered as the man who made inflation respectable.”

“Without Keynes, government budgets would have become unbalanced, as they did before Keynes, during periods of depression and war. Without Keynes, governments would have varied the rate of money creation over time and place, with bad and good consequences. Without Keynes, World War II would have happened, and the economies of Western democracies would have been pulled out of the lingering stagnation of the 1930s. Without Keynes, substantially full employment and an accompanying inflationary threat would have described the postwar years. But these events of history would have been conceived and described differently, then and now, without the towering Keynesian presence. Without Keynes, the proclivities of ordinary politicians would have been held in check more adequately in the 1960s and 1970s. Without Keynes, modern budgets would not be quite so bloated, with the threat of more to come, and inflation would not be the clear and present danger to the free society that it has surely now become. The legacy or heritage of Lord Keynes is the putative intellectual legitimacy provided to the natural and predictable political biases toward deficit spending, inflation, and the growth of government.”

“No one embodied the Cambridge spirit of culture, fun, and public duty so much as Maynard Keynes. No one was more brilliant or charming. No economist in this century influenced politicians or the course of economics more.”

“What do you think of J. M. Keynes's book? ... The condemnation of the work of the Conference as a whole is none too severe. I remember few cases in history where negotiators might have done so much good, and have done so much evil.”

“In a book which gained a vast publicity, particularly in the United States, he exposed and denounced "a Carthaginian Peace." He showed in successive chapters of unanswerable good sense the monstrous character of the financial and economic clauses. On all these matters his opinion is good. Carried away, however, by his natural indignation at the economic terms which were to be solemnly enacted, lie wrapped the whole structure of the Peace Treaties in one common condemnation. His qualifications to speak on the economic aspects were indisputable; but on the other and vastly more important side of the problem he could judge no better than many others.”