John Kenneth Galbraith on John Maynard Keynes

“For handling problems such as those facing the British or French treasuries during the war, there are no miracle men. Either current earnings from exports, salable assets, loans or credits... or gold exist for paying foreign suppliers, in which case the officials are a success. Or these assets do not exist, in which case those involved are a failure. However, nothing comes so easily to the press and public mind as the vision of financial genius. Both wish to believe that... there are individuals of transcendental insight and power, men who can make something out of nothing. In Britain during the war (and after) the popular imagination settled on the thirty-one-year-old (in 1914) Treasury official, John Maynard Keynes. His papers of the period, recently published, suggest that he was a hard-working, competent and resourceful man who matched resources to payments with attention and skill and who extended his mind to the similar problems of the French and the Russians. That was all.”

“Keynes never sought to change the world out of any sense of personal dissatisfaction or discontent. Marx swore that the bourgeoisie would suffer for his poverty and his carbuncles. Keynes experienced neither poverty or boils. For him the world was excellent.”

“By the autumn of 1936 Keynes had reached Harvard with tidal force, There had been no such excitement among the younger economists before; there has been none such since. Here was a solution to depression and unemployment, the most urgent problem of the time. It was also a conservative one. Keynes showed that the government, by offsetting the excess of savings -- the short fall in purchasing power -- could prop up the economy so that it functioned at or near full employment instead of at some painful and socially demoralizing level down below.”

“Keynes was quite frequently in Washington during the war on some negotiating mission. Anybody who's had experience with diplomatic negotiating matters knows that it's an exercise in idleness. You're waiting for instructions from your government, you're waiting for the others to be instructed; you're waiting for a meeting. Keynes filled in those times by moving into the American meeting. By this time there was a sizable group of younger people, of whom I was one, who were devoted to his ideas ― a much larger group, as he has said, in Washington than he had in London. His vanity was not above being touched by this effect, so he brought around him a group of younger Washington people for discussion of wartime policy, and I was naturally in that group.”

“Did Keynes create a sense of hope? Oh, unquestionably. There was this breath of hope and optimism, and I came back from Cambridge to find a whole group of people here who had also read The General Theory.”