Keynes’s Misguided Revolution

Abstract

Keynes’s General Theory is nothing of the sort. Instead, it has been a theory about those who are outside the system. In so doing, Keynes distracted the attention of economics from what concerned the classical school: the fate of those inside the system. While it is true that from the neo-classical perspective, competitive models do not need help, classical economists thought otherwise. For scholars like Smith and Mill, the competitive paradigm was so seriously flawed that it could not function without government. By shifting the attention to those who are outside the system, Keynes has implicitly sanctioned the neo-classical paradigm and shifted the debate from social responsibility towards those who are at work to those who are outside it. While caring for the latter is important, when it comes at the expense of the former, it is misguided.

Keywords

• Keynes (John M.)
• Classical Economics
• involuntary unemployment
• Smith (Adam)
• Mill (John S.)