Recently, Don Boudreaux put forward this idea that Keynes was a utopian (this was somewhat before he put forth the idea that he was a dystopian... confusing, I know - but try to keep up). I noted the source of his confusion on this matter - his understanding of the marginal efficiency of capital, which he seems to think is just the cost of capital (if MEC goes to zero and MEC is the cost of capital then we do have post-scarcity on our hands... the problem is, MEC isn't the cost of capital). I responded to Don in this post.
That's all been on F&OST before. What I wanted to bring your attention to was a post by Robert Thorpe on the Cobden Centre blog on the whole exchange. I have not gotten the chance to read it yet - I am guessing Keynes (and I) don't come out well, but the author was perfectly polite when he shared the link, so I hope I'm passing on something enriching.
This issue also came up again with George Selgin on Cafe Hayek in the comment section. The whole exchange starts here with my response to Don, and Selgin jumps in quickly. Selgin is frustrating. He's a smart guy and definitely worth interacting with in the blogosphere. But he's very dismissive and when he slips into his dismissive mood I lose the ability to make heads or tails of his argument. When he's done making the argument, he's done making the argument and you won't get much more out of him. Everything I've said in this series of exchanges is trying to impress upon Don and trying to get Don and Selgin to tell me why they think Keynes is saying capital would be "free". Selgin writes, for example "But he is saying in effect that capital will become a free good, like air or water." Does he say this, George? Where? Later on he talks about an excess supply of capital (and other goods) and an excess demand for liquidity. Sure, George. We all know this. Excess supply doesn't give you free capital, though. That's hardly an answer. So where are you getting that capital is free? I'm still not sure.
OK - I should have been writing this morning, but now that I've fulfilled my stereotype three times over I suppose I can be more productive for the rest of the day staying home to work on the chapter.