Lord Skidelsky knocks the ball out of the park, as one would expect of Lord Keynes's biographer. BTW, "Lord" is not merely an honorific. Lord Skidelsky is a working member of the House of Lords. If only the British government listen to him, as well as other governments driving their countries over the cliff with "expansionary fiscal austerity."
Skidelsky concludes with an ominous warning.
As with “the specter of Communism” that haunted Europe in Karl Marx’s famous manifesto, so today “[a]ll the powers of old Europe have entered into a holy alliance to exorcise” the specter of national debt. But statesmen who aim to liquidate the debt should recall another famous specter – the specter of revolution.This is an allusion to Keynes's project to develop a theory of macroeconomics that would save capitalism from the rising tide of socialism during the Great Depression. The UK, US, and EZ are facing a similar situation at present, which if not dealt with intelligently will result in regime change in those countries as the population tires of grinding under economic repression and failed economic policy.
Read it at Project Syndicate (short)
Does Debt Matter?
by Robert Skidelsky | Professor Emeritus of Political Economy, Warwick University
(h/t Clonal Antibody via email)