Book Review: The Price of Peace: Money, Democracy, and the Life of John Maynard Keynes by Zachary D. Carter
In this book, Zachary D. Carter decodes the academic, political, and ideological conflicts that John Maynard Keynes lived through, contributed to, and participated in—and provides practical meaning for us today over 70 years after the end of Keynes’ life. The author describes in documented detail how the straightforward logic of Keynes was never fully implemented (hint: a remarkably large amount of money, influence, and corruption conspired to keep neoliberal fallacies embedded in mainstream assumptions). Carter presents Keynesianism as focused on helping people to have better lives through the practical actions of governments and businesses—in this, practicality overrules ideology.
Also covered are the intimate details of Keynes’ private life. Although he eventually married a woman, Keynes was gay (as openly as was practical in early 20th Century UK). Al tough he was concerned about the political oppression he saw in the Soviet Union when he visited there with his Russian wife, Keynes also had several Marxist friends. The Marxist connection to Keynes was leveraged by right wing groups in the United States in the 1940s and 1950s to scare away support of Keynesianism for reasons that had very little to do with Keynes himself or his theories—a typical line of propaganda that continues to be repeated in the US and elsewhere today.
In the period between the two world wars of the 20th Century, Keynes tried to convince world leaders to apply reason in how they treated defeated Germany. We know from history that they weren’t reasonable with Germany, and the world paid a horrible price as a result. There are parallels to this today, as the same economic influences that led to fascism in the 1930s are very much at play in our own time. I’m convinced that taking Keynes seriously is an essential tool in preventing future disaster for ourselves.
In the second half of the book, Carter covers the approaches to Keynesianism in the US and elsewhere after Keynes’ death. Both Democratic and Republican administrations are effectively skewered in this book for falling prey to neoliberalism, often due to well financed and coordinated influences. The context presents the policies actually implemented in contrast to what would have been had they adopted policies based on Keynes. The details presented provide a revealing sense of the personal interactions involved, and how they worked against the public interest.
Although Carter doesn’t predict a return to Keynesianism in the near future, the book provides a context for more effective advocacy of people-oriented economic programs. There is much material to draw upon for encouraging governments at all levels to engage in public works and infrastructure projects. By illustrating where the resistance comes from and how it has been executed, Carter provides material from which one may better craft a persuasive campaign for Keynesian solutions. That by itself makes this book worth the read.
—