June 2021

Investing with Keynes

While he was far better known as the architect of governments’ responses to the Great Depression, John Maynard Keynes’ parallel journey as an investor is an object lesson in investment skill.

The Great Depression can safely be judged the end of laissez-faire capitalism. The Industrial Revolution conferred massive wealth on its winners—developers of the steam engine and its derivatives in Great Britain, and those who harnessed the power of electricity and the internal combustion engine in in so many forms, primarily in the U.S. The absence of constraints on economic activity allowed the economic growth that generated massive increases in standards of living, and while it may seem odd in retrospect, it was typically taken for granted since there had not been concentrations of wealth on such a scale before.

John R. Gilbert

Senior Research Consultant