{"id":11092,"date":"2015-08-15T14:28:28","date_gmt":"2015-08-15T19:28:28","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11092"},"modified":"2015-08-15T14:28:28","modified_gmt":"2015-08-15T19:28:28","slug":"how-keynes-almost-prevented-the-keynesian-revolution","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11092","title":{"rendered":"How Keynes Almost Prevented the Keynesian Revolution"},"content":{"rendered":"<h3 class=\"page-title\"><a href=\"https:\/\/mises.org\/library\/how-keynes-almost-prevented-keynesian-revolution\" target=\"_blank\">How Keynes Almost Prevented the Keynesian Revolution<\/a><\/h3>\n<p>October 30, 1929. A brisk autumn\u2019s day in Manhattan. The Savoy-Plaza Hotel\u2019s thirty-three stories cast a long shadow over Central Park. At the base of the hotel a financier lies freshly fallen, motionless, while his last breath, wrenched from the lungs by force of impact, is now a red mist of gore in the air.<\/p>\n<p>Sirens and uniforms. The suicide spot quickly becomes crowded by spectators, who form a vision-impairing ring-fence of backs, much to the annoyance of elbow-throwers at the periphery. Winston Churchill stands at his hotel window looking down on the mess. To nobody\u2019s surprise, the police will find an empty wallet and five margin calls in the dead man&#8217;s pockets.<a id=\"footnoteref1_rhqizh6\" class=\"see-footnote\" title=\"This is a dramatization of an event reported by Winston Churchill. Quoted on p. 7 of Robert P. Murphy\u2019s Politically Incorrect Guide To The Great Depression and the New Deal.\" href=\"https:\/\/mises.org\/library\/how-keynes-almost-prevented-keynesian-revolution#footnote1_rhqizh6\">1<\/a><\/p>\n<p>Churchill\u2019s curtains flutter shut, and we are left to wonder whether anyone \u2014 Churchill included \u2014 can yet see his clumsy, cigar-wielding hand in it all; whether anyone realizes that, had Churchill as Chancellor of the Exchequer only restored the gold standard at a\u00a0<em>lower exchange rate<\/em>, as Keynes had recommended, the Wall Street Crash of 1929 could have been averted (or at least ameliorated).<\/p>\n<p>Alas, by ignoring Keynes in 1925, Churchill triggered a calamity so severe that it not only inspired one man to kill himself beneath the British statesman\u2019s very window but, more insidiously, also provided the impetus for the economics profession\u2019s rejection of the \u201cclassical\u201d axioms. As Keynes\u2019s biographer Robert Skidelsky writes, Keynes \u201cdid not believe in the system of the ideas by which economists lived; he did not worship at the temple.\u201d And while \u201cin former times he would have been forced to recant, perhaps burnt at the stake, as it was &#8230; the exigencies of his times enabled him to\u00a0<a href=\"https:\/\/books.google.com\/books?id=AoL3mdHGXz4C&amp;printsec=frontcover&amp;dq=Robert+Skidelsky,+The+Return+of+the+Master,+p.59&amp;hl=en&amp;sa=X&amp;ved=0CC0Q6AEwAWoVChMI1_aFn8yVxwIVEzGICh1frAZ8#v=onepage&amp;q&amp;f=false\" target=\"_blank\">force himself on his church<\/a>.\u201d<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How Keynes Almost Prevented the Keynesian Revolution October 30, 1929. A brisk autumn\u2019s day in Manhattan. The Savoy-Plaza Hotel\u2019s thirty-three stories cast a long shadow over Central Park. At the base of the hotel a financier lies freshly fallen, motionless, while his last breath, wrenched from the lungs by force of impact, is now a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[4419,383,458,466,8141,7617,4372],"class_list":["post-11092","post","type-post","status-publish","format-standard","hentry","category-economics","tag-4419","tag-great-depression","tag-john-maynard-keynes","tag-keynes","tag-keynesian-revolution","tag-mises-institute","tag-winston-churchill"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11092"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11092\/revisions"}],"predecessor-version":[{"id":11093,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11092\/revisions\/11093"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}