The Dog Called Investment

This chapter argues, contrary to the received view that Keynesianism is about regulating consumption spending to fine-tune the level of aggregate demand, that investment was always central to Keynes's vision. Evidence is produced to show that Keynes believed there was scope for increased investment even during the depths of the Great Depression, and that he still held this view in the General Theory. There were multiple reasons for this stress on investment: unemployment was caused by the failure of the free-market to ensure adequate investment; there was a need for more investment, even when factories were idle; and increased investment was central to Keynes's vision of a better society.