Keynsian Anti-Imperialism

Hobson believed that the imperial scramble was driven by the need for capitalists to find new areas for investment. Unlike Lenin, who used his theories and data, Hobson did not think that imperialism was the inevitable result of capitalist expansion. The problem was oversavings by capitalists and under-consumption by the mass of the population (of Britain especially). If the people of Britain had the resources, they could consume an almost limitless supply of goods and services. The key to undermining the imperial drive was thus to redistribute purchasing power to stimulate domestic demand.

Hobson’s theories had a direct influence on Keynes. And it is interesting to see that what became the Keynesian economic program was partly shaped by Hobson’s political program.