Zachary Carter has written a biography of John Maynard Keynes that has been widely reviewed.
He is not – as opposed to Robert Skidelsky, Keynes’s master biographer – an economist and a scholar- but a journalist (a senior reporter at HuffPost). His work has received positive reviews. In the Wall Street Journal, Benn Steil pointed out that Carter’s book is at the same time a biography of Keynes (and he liked it as such) and a rant against neoliberalism (with few if any original ideas). He writes: “Mr. Carter seems to believe that Keynes, were he alive today, would be advising Sen. Bernie Sanders.”
Carter has an interview in the Washington Post. The interview is dense and interesting, but I was particularly struck by this passage:
I think we lose track of the fact that Friedman and Keynes had different social visions. They weren’t just arguing across the generations about which policies would best create the same desired result. They were arguing about what kind of world they wanted to live in. And the mathematicization of economics in the 20th century really obscures this deeper ideological conflict, often by design. Keynes wanted everyone to live in the Bloomsbury of 1913, having their hair cut by Virginia Woolf while drinking champagne and debating post-impressionism with Lytton Strachey. Friedman wanted to preserve these activities as the exclusive domain of the wealthy. Why be rich if you can’t live a better life than the masses? To which Keynes would counter: Who cares about the masses when you are drinking champagne with Virginia Woolf?
Carter is spot on on Keynes, but not so much on Friedman. For one thing, from what I know about Milton Friedman (David Henderson can certainly correct me if I’m wrong), I cannot see him particularly enjoying debating post-impressionism with Lytton Strachey. The more important point is that under Milton Friedman’s social vision you do not have a *right* way to live, to which people should aim to adhere. Keynes thought that a life worth living was a life spent having champagne with Virginia Woolf; Friedman thought that some people simply prefer fish and chips and there’s no problem with that. This does not mean that Friedman wanted to keep something “the exclusive domain of the wealthy” nor that he was indifferent to education as a means to climb the social ladder. He was not. Actually Friedman wanted the poor to get the best education they could and, precisely for that reason, he wanted market-like mechanisms in education too (the school voucher). But Friedman did not assume that people want to enroll in universities to read Catullus, Shakespeare, or for that matter Keynes or Friedman. Some of us appreciate and value these things, but others do not. Most people indeed care for a degree in order to be able to find a better paid job.
I suppose Friedman would defend basic literacy and numeracy also as part of a healthier democratic life (“people who can read the daily paper are less likely to be fooled by government” is a standard classical liberal argument, though I am afraid a more dubious one than our forerunners thought). But he would not like to turn everybody into an intellectual because, guess what, most people do not want to become one. I think this is a clear cut difference between the sort of attitude Friedman personifies and the sort of attitude Keynes personifies. One is happy with human beings as they are; the other is not. This pre-political understanding of people can explain lots of differences in the nuts and bolts of public policy.
READER COMMENTS
Garrett
Jun 11 2020 at 10:19am
That’s quite the slant. I don’t claim to be an expert on Friedman but that sort of opinion on him gives me the urge to dismiss Carter’s work.
David Henderson
Jun 11 2020 at 11:02am
Excellent post, Alberto.
I don’t think Carter could have written what he did about Friedman if had read Two Lucky People. Milton had no airs about him. He understood the common man and, I dare say from my many dealings with him, thought of himself as a common man, but a man with great accomplishments.
I remember at my first Mont Pelerin Society meeting, in Hong Kong in 1978, going up to Milton and Rose at the ending banquet to say my good-byes. Milton’s friend George Stigler had put me on the program as a discussant of papers by Chiaki Nishiyama and Gary Becker. (The other discussant was Vernon Smith.) Milton asked me what the highlight for me had been. I’m guessing he thought I would mention the session I was in. I told him and Rose that there were two highlights. The first was an impromptu session on monetary institutions organized by Murray Rothbard. I knew Milton’s history with Murray but I wanted to be honest. Milton didn’t seem upset at all. And the second? he asked. I answered, “A romantic fling I had with a young woman from Spain.” He and Rose laughed that laugh that a parent would have in enjoying his young son.
Milton’s feet were firmly on the ground.
nobody.really
Jun 11 2020 at 3:15pm
“The man who never looks into a newspaper is better informed than he who reads them, inasmuch as he who knows nothing is nearer to truth than he whose mind is filled with falsehoods and errors. He who reads nothing will still learn the great facts, and the details are all false.”
Thomas Jefferson, letter to John Norvell, 1807.
Phil H
Jun 11 2020 at 7:52pm
“One is happy with human beings as they are; the other is not. This pre-political understanding of people can explain lots of differences in the nuts and bolts of public policy.”
Yeah, I see the slant that you’ve put on that, and it seems fine. But remember that that kind of argument (“happy with human beings as they are”) has traditionally *not* been used in a humanistic kind of a way. Traditionally, that argument is used to justify deep inequalities, separation of the races, hereditary aristocracy.
It’s fine to repurpose an argument, and the libertarian vision of equality is inspiring. But it will take a *lot* more work before anyone with a bit of historical awareness can look at that argument with anything other than the utmost suspicion.
Clare Zempel
Jun 12 2020 at 2:05pm
I used to joke that the difference between economists on the classical liberal side and others could be traced back to potty training, with the classical liberals having been trained properly, and the others having been wounded in the process.
Thomas Hutcheson
Jun 13 2020 at 8:38am
If true, these are very damning judgments on both Friedman and Keynes. Neither ring true to me.
Idriss Z
Jun 13 2020 at 4:02pm
@Alberto, please forgive me if I get anything wrong, but I believe you are reading that quote a bit (a lot, actually) too literally. The point wasn’t that Friedman ad Keynes would have the same leisurely (and in the case of Keynes, bourgeoisie) pursuits. The point was that there are privileges in life that should not be denied to people on the basis of their lack of wealth. This is why the proposition that Keynes would be advising Sanders is not tremendously difficult to envision. The level of inequality that Friedan found tolerable has proven to be intolerable for this and other countries for reasons that extend far past economics, and Keynes being impacted by seeing such during the Great Depression would realize that economic thought must change with the times. We live in deeply unequal times, you are right when you say Friedman accepts people as they are and Keynes would not, as unequals before the law.
Also, I had been wanting to thank you for putting me on to Mariana Mazzucato, she’s wonderful!
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