ABSTRACT
In his testimony to the Committee, John Maynard Keynes critically analyzed all of the main proposals – good and bad – for dealing with Britain’s almost decade-old economic malaise. The problem, Keynes said, comes from confusing sensible policy under the dismal economic conditions with policy when the economy is in market-clearing equilibrium. Keynes repeated, in an especially strong form, something he said from time to time when offering policy advice to official government bodies. A large increase in public and semi-public investment to kick-start economic growth in the midst of high unemployment would eventually raise the profit rate on private capital investment. Keynes had stated over and over again, including in Britain’s Industrial Future, that a massive and sustained period of public investment under the control of a Board of National Investment would be necessary to achieve and maintain full employment.
