Especially in relation to the proposition that a market economy tends naturally to restore itself to full employment after temporary shocks. On the contrary, underemployment and underinvestment are likely to be the natural state unless active measures are taken. Keynes sought to do nothing less but upend the conventional economic wisdom. I believe myself to be writing a book on economic theory which will largely revolutionize — not I suppose, at once but in the course of the next ten years — the difference between vested and invested the world thinks about its economic problems.
I can’t expect you, or anyone else, to believe this at the present stage. But for myself I don’t merely hope what I say,— in my own mind, I’m quite sure. The object of such a title is to contrast the character of my arguments and conclusions with those of the classical theory of the subject, upon which I was brought up and which dominates the economic thought, both practical and theoretical, of the governing and academic classes of this generation, as it has for a hundred years past. I shall argue that the postulates of the classical theory are applicable to a special case only and not to the general case, the situation which it assumes being a limiting point of the possible positions of equilibrium.