Fighting Austerity. Why After 80 Years the General Theory is Still Relevant Today

The guiding spirit of the Keynesian Revolution is that full employment is a goal which can be pursued not by following the free market rules, but by reshaping them by means of public intervention. This message was widely accepted for thirty years as from the end of the Second World War by all the advanced countries which actively engaged in full employment and welfare policies, and subsequently abandoned with the neo-liberal Restoration which saw the dogmas of individualism and de-regulation prevailing. In reclaiming the topical importance of the General Theory, we should take into consideration the changed circumstances of today’s world when compared to those of twenty—let alone eighty—years ago, although there are notable similarities between the Great Depression of the 1930s—Keynes’s world—and our contemporary crisis. However, his prescription for a better society is still relevant: it lies in setting rules and limitations in the market arena, not letting individual self-interest prevail, and putting some governing bodies in charge of filling the gap when deficient aggregate demand occurs, so that the acquisition of material goods and the fruition of the enjoyments of life be not a privilege of the few but the conquest of civilization.