Born in 1883 and deceased in 1946, Keynes lived through both World Wars, as well as the Great Depression. His innovative macroeconomic theories laid the foundations of what is now known as Keynesian macroeconomics. His predecessors advocated economic laissez-faire, meaning a government that intervenes as little as possible in the economy and lets markets work their magic.
However, Keynes was able to observe, during the Great Depression of the 1930s, the damage caused by this laissez-faire policy. That is why he argued for intervention by the British government in the economy, both on the monetary side, through the setting of interest rates, and on the fiscal side — he was a strong advocate of large public works programs.
Since the free market cannot always regulate itself, the government has the responsibility to lower rates and increase its spending (even if it means running deficits) when the economy is weak, and to do the opposite when the economy is performing well.
According to Keynes and based on economic history, it is not a good idea to leave markets entirely to themselves, as this inevitably leads to excesses and painful corrections. He also stated that the role of government was to keep unemployment at a minimal level while maintaining inflation at a reasonable level. The government, either through its monetary policy (interest rates) or its fiscal policy (tax rates), must intervene regularly to regulate the economy — slowing it down when it overheats or stimulating it when it slows too much.
We have seen repeatedly in the past that markets tend to fall into excess if governments let them. I am thinking of the tech bubble of the late 1990s or the housing bubble of the 2000s that led to the 2008–2009 financial crisis. The Great Depression of the 1930s is the most well-known example in modern economic history.
In my view, we are living in a market that would benefit from more oversight. Donald Trump is a strong supporter of the free market and reduced regulation. In equity markets, we are witnessing a resurgence of speculation. The record level of margin used for investing is a good example of a situation that might warrant greater oversight.
Source : Advisor Perspectives / VettaFi, April 2026.
In his 2026 annual letter, GatesNotes, Bill Gates wrote: “Some problems require doing far more than just letting market incentives take their course.”
According to Gates, the first area where government intervention is critical is the fight against climate change. “Without a large global carbon tax (which is, unfortunately, politically unachievable), market forces do not properly incentivize the creation of technologies to reduce climate-related emissions.”
Another area where close oversight seems critical to me is AI.
I have the impression that this field is somewhat the equivalent of the Wild West, particularly in the United States, which does not seem very inclined to intervene to regulate this rapidly growing sector. The recent launch of Claude Mythos by Anthropic on April 7 could change the game. According to The Economist, “The model-maker’s latest creation is so startlingly good at finding software vulnerabilities that, in the wrong hands, it would threaten critical infrastructure, from banks to hospitals. AI models increasingly pose other risks, too, from biosecurity hazards to industrial-scale scamming.”
As in many other areas, balance should be sought. Governments must find the right middle ground between interventionism and total laissez-faire. However, I believe that leaving markets and investors entirely to themselves is a recipe for accidents.
Philippe Le Blanc, CFA, MBA
Chief Investment Officer at COTE 100
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