Is anyone else confused by DeFi and the Metaverse? History may not repeat itself, but it does rhyme.
The past few days, I’ve had the opportunity to dive deeply into the brilliant biography of John Maynard Keynes.
You’ve likely heard of Keynesian economics.
But even if you haven’t, we largely have him to thank for the standard of living we enjoy today.
He challenged the world to understand the role of government in the economy. To look beyond the gold standard. To understand that since the days of ancient Babylon, monetary systems have been largely a state-driven concept (mostly in the early days to back wars). To look at how governments needed to play a role in spurring growth and taking the edge off of recessions.
Government taking on debt to fuel productive spending – infrastructure, R&D, etc… – has a multiplying impact if it is done right.
Incentives and Taxation are important levers to incent what is “good” for society. And remember, what is good, will change as we learn more.
His playbook has been used again and again so that we do not ever feel the harsh realities of the Great Depression again.
It is also a lesson in Humanity.
New challenges require new thinking.
Old Models and Old Truths don’t always serve the current challenges. As Keynes said “The difficulty lies not so much in developing new ideas as in escaping old ones.”
As this world gets increasingly complex – Web3, the Metaverse, NFTs, DeFi, and Crypto we’re entering a confusing new world with new models.
Sometimes it is helpful to lean into how humanity adapted in the past to their new challenges.
For that reason, I highly suggest this almost poetic biography of John Maynard Keynes. It seems almost impossible that a 550 page book on an economist can be this good.
But Zachary Carter takes us on a journey from before the First World War through the Treaty of Versailles to the roaring 20s, the Great Depression, The New Deal, and the Post Second World War era through the fascinating life of John Maynard Keynes.
I hope you are spending some time re-examining the ideas you hold dear. And ensuring that they still serve you.
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Feb 11, 2022