Document 27-3: John Maynard Keynes The Economic Consequences of the Peace: An Analysis of the Versailles Treaty
John Maynard Keynes
a.British economist John Maynard Keynes didn’t like the treaty because it was more political than economic. He said it would destroy the European economy. Indeed, it did: German economic collapse (1923), US stock market crashà Great Depression (1929)
What is Keyne's argument?
Treaty doesn't stabilize or make peace with the Central Powers, reclaim Russia, or provide an economic agreement against the Allies (no financial solutions for France and Italy)
The Council of Four was too preoccupied with reparations but Europe's terrible economy
He says that Europe will be destroyed and its out of man's control; noone can predict the outcome; we can just influence change by forcing the truth, revealing the illusion, dissipating hate, and enlarging man's hearts and minds
He writes in autumn of 1919 when their fortunes are bad
He says they are unconcerned with their own experience and dreadful anticipations
The future is bleaker than ever
Who are the Council of Four and what did each want?
Clemenceau (France): to crush the economic life of his enemy
Lloyd George (Britain): bring something home
President (Wilson of USA): avoid what's not just and right
Vittorio Orlando of Italy
Heinrich Hauser With the Unemployed in Germany Date: __
Heinrich Hauser With the Unemployed in Germany Intro
The Great Depression= devastating40% unemployed
due to Versailles treaty, economy collapsed iin 23-24
2nd economic catastroophe in less than 10 years with different responses
- fortunes of extremist parties rose
- unemployed supported anyone who would briing stability
Who is Hauser?
a journalist travelling around Germany writing human- interest pieces for the nationalist magazine, Die Tat
Explain Hauser's account.
Homeless men all along highway of dif. backgrounds and families with wheelbarrows full of goods= "Whole nation on the march"
People attacking potato fields with cops not doing anythiing
Everyone is crowded in a lodging house where the watchmen doesn't even look at them, just collects their paper (disrespect)
He looks up when Hauser says he's never been there before and is shocked; although he never begged before, they say he will
They give people coat hangers
He describes the naked bodies and mutilations and diseases that are rampant throughout
People eat their meals quickly and protecting it, almost as if to prevent it from being taken
For sleep, they match your number, but not alot of people can sleep
He ends with "animals die, plants wither, but people go on living"
What is Hauser's tone?
It doesn't seem like he feels bad for them. He feels contempt for them. He talks about them as if they are just an experiment he is conducting; he scrutinizes every thing they do. For example, when they are taking potatoes, he says it's just like WWI, except they paid for it
He is also embarassed by their situation. When he is asked whether he begs, he becomes red. His bourgeoisie roots come forth. He also continues relating to his own bourgeiosie roots. For example, he's repulsed by the naked bodies because, unlike everyone else, he isn't used to it