Keynes Vs Friedman

A biographer of Keynes has some interesting things to say about him, and the comparison with Friedman, in an interview at the Washington Post:

...Keynes himself never wanted to be remembered as a deficit therapist. He was a social thinker who was concerned with the great problems of his day: war and economic depression. And I think he would be very troubled by the idea that government spending on anything at all became the hallmark of his legacy in the economics profession.  ...

I think he would be perplexed by what we deem to be political battles in the United States. He thought economic policy was the central political battleground for social justice, and the way economics has become technocratized and hived off from mainstream politics as an arena for specialists would have both excited and frightened him. He would be terrified by the idea that central political questions about equality and inequality have become the terrain of experts who essentially rule in favor of inequality, regardless of which political party is in charge. Keynes viewed inequality as a very dangerous thing — it’s something that preoccupied him when he wrote “The Economic Consequences of the Peace” and “The General Theory” — his two masterpieces.

OK, here's the bit with the comparison:

The conventional understanding now places Keynes, a champion of stimulus, against Milton Friedman, who came after him and is seen as a champion of austerity. Is that a useful binary?

I think we lose track of the fact that Friedman and Keynes had different social visions. They weren’t just arguing across the generations about which policies would best create the same desired result. They were arguing about what kind of world they wanted to live in. And the mathematicization of economics in the 20th century really obscures this deeper ideological conflict, often by design. Keynes wanted everyone to live in the Bloomsbury of 1913, having their hair cut by Virginia Woolf while drinking champagne and debating post-impressionism with Lytton Strachey. Friedman wanted to preserve these activities as the exclusive domain of the wealthy. Why be rich if you can’t live a better life than the masses? To which Keynes would counter: Who cares about the masses when you are drinking champagne with Virginia Woolf?

So literal champagne socialism?

It depends on which Keynes you’re talking to, but by the end of his life, I think that’s about right. Keynes had a complicated relationship with the word “socialism.” He was ferociously critical of the Soviet Union. But he also thought the socialist Labour governments in Britain during the 1920s and 1930s were much too timid and insufficiently committed to economic justice for working people. In the United States, we remember Keynes for deficit spending, but his most comprehensive policy victory was the establishment of the National Health Service in Britain. He was the financial architect of socialized medicine in the U.K.