Book SummaryThe Price of Peace, by Zachary D. Carter

1-Page Summary1-Page Book Summary of The Price of Peace

Keynes' intellectual development progressed in tandem with his active participation in societal and political arenas.

The formative concepts and initial influences that molded his existence.

During his tenure at Cambridge, where he was an active member of the Apostles society, Keynes shaped his views on sexuality, the notion of elitism, and his idea of what an ideal life should look like.

Carter chronicles the time at Cambridge University when Keynes underwent considerable intellectual development, joining the ranks of the Apostles, a select circle of academically inclined students. The group known as the Apostles fostered a welcoming environment that enabled Keynes to explore his sexual identity at a time when homosexuality was not only illegal but also broadly scorned. Keynes consistently displayed a sense of intellectual superiority and exclusivity, a characteristic that stemmed from his persistent engagement with philosophical, artistic, and social discourse. Carter portrays the Apostles as a group tightly knit by strict traditions and rituals, which cultivates a deep sense of togetherness within the group and highlights their uniqueness and separation from the wider community.

Keynes' time with the Apostles had a deep impact on his ethical values and his vision of a perfect life. He started to appreciate the allure of artistic experiences and the enchantment of romantic engagements over conventional measures of achievement like wealth or influence in society. Keynes's intimate bonds, encompassing his unconventional romantic ties and later union with Russian ballerina Lydia Lopokova, were influenced by the open and honest exchange of ideas typical of the tight circle called the Apostles. Carter portrays Keynes as a staunch advocate for a philosophy that prioritized personal freedom, but also recognized the need for a strong collective structure to realize it fully—a paradox that led to tension and regret as he advanced to more influential positions in his career and life.

G.E. Moore underscored the significance of aesthetic values over the emphasis on economic production, thereby questioning the core tenets of utilitarianism.

During his tenure at Cambridge, the philosophical outlook of Keynes was deeply influenced by the ethical principles presented in G.E. Moore's "Principia Ethica." Carter describes Moore's philosophical position as diverging from the dominant belief in utilitarianism of the time, which held that the quest for happiness was the cornerstone of all ethical principles. Moore suggested that objects have an innate characteristic, akin to how we perceive color or beauty, which is their inherent goodness, identifiable by our capacity for rational thought. A fulfilling life depends on engaging in pursuits that cultivate positive emotional states, with special emphasis on appreciating art and feeling love, rather than just seeking increased gratification or contentment.

Carter depicts how Keynes and his intimate group of Apostles assimilated Moore's philosophies into their personal value system, placing great importance on romantic love and the arts. They regarded the political sphere as inconsequential and tainted, prioritizing aesthetic enjoyment over the pursuit of material riches or societal standing. The contributions of Moore significantly influenced Keynes' economic theories. Influenced by Moore's perspectives, Keynes started to see economics as more than just a mechanism for maximizing production; he saw it as a means to attain a life imbued with meaning and intention. Keynes subsequently introduced pioneering concepts that supported the role of government intervention in the economy amid the Depression, which arose from his rejection of the notion that economic efficiency constituted the sole metric of societal progress.

The global conflict referred to as the Great War, in addition to the Bloomsbury circle

The Moral Dilemma of War Finance: reconciling Bloomsbury pacifism with the imperative of supporting the British during their military conflicts.

The outbreak of World War I presented a substantial moral dilemma for Keynes along with his colleagues from the Bloomsbury group, an assembly of intellectuals and artists who had transitioned from Cambridge to the metropolis of England. Carter depicts Bloomsbury as initially optimistic that the strife would end imperial tendencies and usher in an era marked by peace and progress. However, as the horrors of war became undeniable, most of the group became committed pacifists, rejecting the violence and destruction in which their friend Maynard was now deeply involved.

Keynes, however, found it impossible to align his Bloomsbury idealism with the perceived threat posed by German aggression, opting to endorse the conflict while attempting to lessen its impact on his close associates. He supported many pacifists from Bloomsbury in their quest to be recognized as conscientious objectors, thus avoiding mandatory military service, and he committed his efforts to ensuring Britain's economic readiness to triumph over opposing countries. Carter portrays Keynes as an individual grappling with the conflict between his societal duties and his national allegiance, a tension that endured during the wartime period and influenced his participation in the Paris Peace Conference.

Keynes' rise to prominence was shaped by his influential position within the Treasury, which concurrently altered the political views of the Bloomsbury group.

As hostilities emerged, the British government was compelled to implement rapid actions to protect their economic system from possible collapse. Carter highlights the importance of the contribution from the novice academic, who was summoned by the Treasury to devise a plan addressing the Bank of England's emergency, illustrating the crucial role he played in this prompt reaction. Keynes' proactive actions to avert a severe economic crisis not only protected...

The Price of Peace Summary The evolving economic theories and fiscal strategies of John Maynard Keynes.

The limitations imposed by a gold-standard monetary system within the framework of unregulated trade and the principles of liberal imperialism.

The 1914 economic downturn underscored the fragility of global financial systems, the importance of confidence in market transactions, and the imperative for state intervention to protect national interests.

The story explores the way in which the economic chaos that occurred in 1914 influenced Keynes' views on money, lending, and the structure of global financial systems. The book provides detailed insights into the intricate nature of international trade before the war, highlighting London's crucial role in finance, and underscores the substantial disruptions in trade and payment networks that ensued with the onset of war. Keynes had to confront the delicate condition of what appeared to be a robust financial system until its sudden collapse, underscoring the critical role of government in sustaining market equilibrium and strengthening economic assurance.

Carter suggests that Keynes' rapid rise within the British Treasury and his early profound grasp of the interplay between market forces and political situations were...

The Price of Peace Summary The periods of the New Deal and the Second World War were marked by the implementation and impact of Keynesian economic principles.

The adoption of Keynesian economic theories by the United States

Economists gained influential roles within the corridors of power in Washington.

The publication outlines the significant impact that the New Deal and World War II had in defining the economic landscape of the United States. As the United States braced itself to tackle the Great Depression and the rise of fascism, there was a substantial expansion in the scope of government duties, which in turn heightened the need for economists throughout the tenure of President Franklin D. Roosevelt. Previously confined mostly to academic spheres, economists were called upon to fill important roles in newly created government agencies and to offer advice on economic policy to the White House. The growing power of the Federal Reserve further entrenched this pattern, establishing it as a rival to the Treasury Department in shaping economic policy.

Carter details how an academic discipline in economics was formed and influenced by a changing intellectual landscape. Once established in the United States, Keynesian economic theory began to evolve and branch out, departing from the original philosophical and societal...