ABSTRACT
John Maynard Keynes was forced once again to move closer towards a protectionist position. In Keynes' opinion, another free trade argument which was entirely valid in the nineteenth century, but of questionable merit in the economic environment of the 'thirties was the principle of comparative cost. In the nineteenth century, there were substantial differences in the degree of industrialization in different areas of the world. In developing further his case for national self-sufficiency and more restricted trade, Keynes argues that such a policy is made necessary by the failure of international capitalism. Another feature of the system proposed by Keynes to take the place of laisser faire capitalism is increased participation by the State in the economy. Keynes doubted that the claims were valid in the prevailing economic environment. He was especially skeptical of the assertion that a policy of free trade was promotive of international tranquility.
