Inequality and the Double Bluff

Paul Davidson

Chapter 3 in Inflation, Open Economies and Resources, 1991, pp 14-24 from Palgrave Macmillan

Abstract: Abstract Keynes attributed the vast accumulation of fixed capital under the capitalist system — which has provided immense benefits to mankind — ‘on a double bluff or deception’: On the one hand the labouring classes accepted from ignorance or powerlessness, or were compelled, persuaded, or cajoled by custom, authority and the well-established order of society into accepting, a situation in which they could call their own very little of the cake that they and nature and the capitalists were cooperating to produce. And on the other hand the capitalist classes were allowed to call the best part of the cake theirs and were theoretically free to consume it, on the tacit underlying condition that they consumed very little of it in practice. The duty of ‘saving’ became nine-tenths of virtue and the growth of the cake the object of true religion. There grew round the non-consumption of the cake all those instincts of puritanism which in other ages has withdrawn itself from the world and has neglected the arts of production as well as those of enjoyment. And so the cake increased; but to what end was not clearly contemplated. Individuals would be exhorted not so much to abstain as to defer, and to cultivate the pleasures of security and anticipation. Saving was for old age or for your children; but this was only in theory — the virtue of the cake was that it was never to be consumed, neither by you nor by your children after you.

Keywords: Financial Institution; Money Supply; Capital Good; Full Employment; Financial Intermediary (search for similar items in EconPapers)
Date: 1991
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Journal Article: Inequality and the Double Bluff (1973)
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DOI: 10.1007/978-1-349-11516-7_3

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