Freudian Keynes: Spending Man and Spending State

S. Sevinç Orhan - Metin Sarfati

While Keynes defines all pre-Keynesian economics that analyzes on the Euclidian plane as Classical Economics, he writes the general theory of economics using his own approach. In Keynes’ approach, the Euclidian world is rejected while unpredictable investment and spending behavior of men under unmeasurable risk and uncertainty are emphasized. In this way, spending state actor is added to the theory against uncertainty by the animal spirit image in the capitalist system, and the new political economy of the theory is created. According to Freud infinity and self-realization drive with regard to the Eros-Thanatos dilemma takes men to death. With liberation, unlimited development and never-ending enrichment passion, men clash with the civilization and strive to destroy it whether knowingly or not. In the Freudian approach, men are those that are not the owner of himselves. While human nature is dispersed by the effect of drives rather than ratio, it destroys itself in the search of wealth and prepares for its own death. According to Keynes, capitalism is a system that reminds Freudian death drive. Based on the Freudian approach, Keynes criticizes saving aspiration and gets rid of human nature that piles up with spending behavior. Keynes adds a new actor in spending man image to the theory of economics by Freudian psychoanalysis.

Keywords: Keynes, Economic Methodology, Methodological Individualism.