Keynesian splenetics: From social philosophy to macroeconomics

Underlying the analytical framework of Keynes's General Theory is a comparison of capitalism and socialism in terms of risks and consequent rates of interest, rates of investment and capital accumulation, and levels of employment and output. Keynes's social philosophy and corresponding vision of macroeconomic reality biases his comparison in favor of socialism, or, more precisely, in favor of “a comprehensive socialisation of investment.” Recognizing the significant influence of Keynes's early social philosophy on his subsequent macroeconomics— which is firmly established by Allan Meltzer's “different” interpretation of Keynes—refocuses criticism of Keynes's analytics, provides a basis for assessing other interpretations of the General Theory, and helps account for the absence of reconciliation among the modern recastings of Keynesian macroeconomics.