Keynes, Working Hours, Lifestyles and the Environment: A Note

Abstract

In 1931, in the midst of serious economic downturn, John Maynard Keynes published a short paper, ‘Economic Possibilities for our Grandchildren’. On the basis of an insightful discussion of the determinants of future economic growth, he predicted substantial improvement in living standards over the next hundred years. Those improvements, he claimed, would herald the end of the economic problem. One component of the higher quality of life would be a drastic reduction in working hours for everybody. He put it at 15 hours a week. Freed from the crippling drudgery of work, the typical person would have ample time to utilise her leisure virtuously and well. In reality, although the pace of economic growth has far outstripped Keynes’ predictions, the hope for increase in leisure has not happened. The economic problem has not been conquered, and man is as hard pressed for time as in 1931, if not more. Working hours have declined significantly only in a very small number of even the more advanced countries. Higher leisure consumption would have shifted demand away from material production, and this would have been a boon from the point of view of preserving the world’s resources and environment. This paper explores some aspects of the ‘Keynesian failure’ and the consequences for our grandchildren.