Animal Spirits (Keynes) - Origins

Origins

Several articles and at least two books with a focus on "animal spirits" were published in 2008 and 2009 as a part of the Keynesian resurgence.

The original passage by Keynes reads:

Even apart from the instability due to speculation, there is the instability due to the characteristic of human nature that a large proportion of our positive activities depend on spontaneous optimism rather than mathematical expectations, whether moral or hedonistic or economic. Most, probably, of our decisions to do something positive, the full consequences of which will be drawn out over many days to come, can only be taken as the result of animal spirits—a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities.

William Safire published an article "On Language: 'Animal Spirits'” in the New York Times on March 10, 2009, stating:

The phrase that Keynes made famous in economics has a long history. “Physitions teache that there ben thre kindes of spirites”, wrote Bartholomew Traheron in his 1543 translation of a text on surgery, “animal, vital, and natural. The animal spirite hath his seate in the brayne ... called animal, bycause it is the first instrument of the soule, which the Latins call animam.” William Wood in 1719 was the first to apply it in economics: “The Increase of our Foreign Trade...whence has arisen all those Animal Spirits, those Springs of Riches which has enabled us to spend so many millions for the preservation of our Liberties.” Hear, hear. Novelists seized its upbeat sense with enthusiasm. Daniel Defoe, in “Robinson Crusoe”: “That the surprise may not drive the Animal Spirits from the Heart.” Jane Austen used it to mean “ebullience” in “Pride and Prejudice”: “She had high animal spirits.” Benjamin Disraeli, a novelist in 1844, used it in that sense: “He...had great animal spirits, and a keen sense of enjoyment.”

It has also been suggested that Keynes may be referring to David Hume's term for spontaneous motivation although it is not mentioned in the Treatise of Human Nature. The term itself is drawn from the Latin spiritus animales which may be interpreted as the spirit (or fluid) that drives human thought, feeling, and action.