In “The Money Makers: How Roosevelt and Keynes Ended the Depression, Defeated Fascism, and Secured a Prosperous Peace,” Eric Rauchway delves into one of the most pivotal partnerships in economic history. By intertwining the lives and ideas of Franklin D. Roosevelt and John Maynard Keynes, the book explores how these two leaders formulated strategies to rescue the global economy from the throes of the Great Depression, combat fascism during World War II, and lay the groundwork for postwar prosperity. Rauchway presents an in-depth examination of how economic policy and wartime leadership were linked, offering readers insights into how the policies crafted by Roosevelt and Keynes not only reshaped the U.S. but also influenced global economics for decades.

The book begins by painting a bleak picture of the global economy in the early 1930s, with the Great Depression leaving millions jobless and disillusioned. Rauchway emphasizes how Roosevelt’s New Deal policies, deeply influenced by Keynesian economic thought, broke away from the laissez-faire capitalism that had dominated Western economies. Roosevelt believed that active government intervention was necessary to stimulate demand and create jobs, while Keynes provided the theoretical framework to justify such actions. One of the key points here is Roosevelt’s abandonment of the gold standard, a move seen as radical at the time but critical to loosening monetary policy.

One of the most compelling anecdotes in this section involves Roosevelt’s conversation with economists who opposed abandoning the gold standard. When they insisted on staying the course, Roosevelt famously replied: “If you’re convinced that there’s no other way to get the country back on its feet, then you’re wrong.” This moment highlights his willingness to break with tradition to find solutions.

Rauchway goes on to describe how the intellectual relationship between Roosevelt and Keynes developed, despite their initial differences. Roosevelt was initially skeptical of Keynesian economics, but over time, the two found common ground. A memorable quote from this section is when Keynes wrote to Roosevelt after a meeting, stating: “You are the trustee for those in every country who seek to mend the evils of our condition by reason and not by violence.” This illustrates the global significance of their collaboration, as they sought to create a model that could be replicated worldwide.

The chapter also details Keynes’ visit to Washington D.C. in 1934, when he tried to convince Roosevelt that more aggressive fiscal stimulus was necessary. Though Roosevelt did not fully embrace Keynesian policies at the time, this meeting planted the seeds for future collaboration, which would become critical during World War II.

As the book transitions to the war years, Rauchway explores how Roosevelt’s and Keynes’ policies not only helped the U.S. economy recover but also aided in the global fight against fascism. Roosevelt’s leadership during the war is highlighted by his strategic use of economic tools—rationing, war bonds, and deficit spending—to both finance the war effort and maintain domestic stability.

A key event discussed is the 1944 Bretton Woods Conference, where Keynes played a central role in shaping the postwar global financial order. At this meeting, Keynes advocated for the creation of the International Monetary Fund (IMF) and the World Bank, institutions designed to prevent the kind of economic collapse that led to World War II. One example is Keynes’ advocacy for an international currency known as “bancor,” which was ultimately rejected but showcased his forward-thinking approach to global economics.

Roosevelt’s ability to convince Americans that the fight against fascism and economic recovery were intertwined is another highlight of this section. A notable quote from one of his speeches is: “We are fighting against an economic system in which privilege and power breed inequality and repression.” This statement exemplifies how Roosevelt connected the war effort with the broader struggle for economic justice.

In the final chapters, Rauchway shifts focus to how Roosevelt and Keynes worked to secure a lasting peace after the war. Roosevelt’s vision of the “Four Freedoms”—freedom of speech, freedom of worship, freedom from want, and freedom from fear—was closely linked to his economic policies, which sought to ensure that the postwar world would not return to the chaos of the 1930s.

A major component of this peace was the establishment of a global economic system that would prevent future depressions. Rauchway describes how the Bretton Woods system, largely designed by Keynes, provided the framework for international cooperation in finance and trade. The U.S. dollar became the anchor currency of the new system, a move that solidified American economic dominance but also fostered global stability.

One of the standout anecdotes from this section involves Roosevelt’s last months in office, where despite his deteriorating health, he pushed forward plans for international economic cooperation. Rauchway poignantly describes Roosevelt’s final speech to Congress, where he outlined his vision for the postwar world. In this speech, Roosevelt declared: “We cannot achieve lasting peace unless we establish the institutions that will provide economic security for all nations.”

In the conclusion, Rauchway reflects on the enduring impact of the Roosevelt-Keynes partnership. Their policies not only ended the Depression but also set the stage for decades of unprecedented prosperity in the U.S. and around the world. The Marshall Plan, the expansion of the welfare state, and the economic boom of the postwar years can all be traced back to the ideas and actions of these two leaders.

Rauchway leaves readers with a profound understanding of how economic policy and political leadership are intertwined. A memorable closing quote from the book is: “The true triumph of Roosevelt and Keynes was not merely in defeating fascism, but in showing the world that government could be a force for good, fostering both freedom and prosperity.”

“The Money Makers: How Roosevelt and Keynes Ended the Depression, Defeated Fascism, and Secured a Prosperous Peace” has garnered critical acclaim for its detailed exploration of how economic theory and political leadership intersected during one of the most challenging periods in modern history. The book’s relevance extends to current debates about the role of government in managing economic crises, as Rauchway draws parallels between the policies of Roosevelt and Keynes and modern responses to financial crises.

In a world still recovering from the 2008 financial crisis and navigating the economic upheavals brought on by the COVID-19 pandemic, Rauchway’s examination of how Roosevelt and Keynes managed to stabilize the economy through active intervention serves as a reminder of the potential for well-crafted economic policies to drive recovery and peace.

By seamlessly blending historical narrative with economic analysis, Eric Rauchway’s The Money Makers offers readers both an engaging account of the past and a timely lesson for the present, making it an essential read for anyone interested in economics, history, or politics.