Why Fascists Admired Keynes’s Economics: Keynes saw centralized economic direction as an improvement on market coordination. This provided cover to later corporatist authoritarians who wanted to control every aspect of life. (John Phelan, July 23, 2026, Daily Economy)
Keynes believed, according to his biographer, the economist Roy Harrod, that “the government of Britain was and would continue to be in the hands of an intellectual aristocracy,” of which he was part. He supported economic central planning, via corporatism, because he assumed that enlightened experts like himself, a leading member of the Bloomsbury group, not a goon like Mussolini, would be doing the planning. He underestimated the political dangers of replacing decentralized decision-making with central planning, assuming that economic freedom could be curtailed without curtailing other freedoms.
But if we can excuse such a belief held in 1926 as naivety, how can we excuse it still held ten years later when fascism’s true nature was becoming apparent? In September 1936, Keynes wrote in the preface to the German edition of his masterpiece, The General Theory of Employment, Interest and Money, that “the theory of output as a whole, which is what the following book purports to provide, is much more easily adapted to the conditions of a totalitarian state, than is the theory of the production and distribution of a given output produced under conditions of free competition and a large measure of laissez-faire.”
If a totalitarian state is the price we must pay for the Keynesian “theory of output” to be put into practice, it is not a price worth paying. Likewise, if laissez-faire was the economic manifestation of political liberalism, then its death was to be mourned, not celebrated. If economic freedom is surrendered, other freedoms follow. “The economy” is just people acting, and one can only control “the economy” by controlling people.