Commanding Heights: Battle of Ideas Essay

_The Commanding Heights The Battle of Ideas_ episode explains the economys flip in structure between 1914 and 1970, as well as the execution of the grocery stores and regime during that time. John Maynard Keynes and Friedrich von Hayek twain had influential roles on the economy in the 20th century due to their opposing s centerings regarding aggregate demand and determinate liberalism, respectively. Keynes planned economy idea and Hayeks market economy both fought to shape the economy into what they hoped was ideal for modern day society. Between the two, Keynes argument seemed to have the most success, especially in times of great pick out, which is wherefore I found his the most compelling.After World War I, Germany and Austria were labored to pay the costs of the war, which was near impossible for them, until they began to print to a greater extent currency in order to compensate for their lack of funds. Printing more money ca employ a hyperinflation to occur, where ch arges skyrocketed and peoples savings decreased in value. By 1929, the market began to crash banks started closing and millions of people lost all of their money. It was at this time that the g everyplacenment and the economy were in desperate need of a plan that would revive them from this devastating crash.At this point, John Maynard Keynes came in with his scheme in an attempt to save the economy from the Great stamp. He wrote a book explaining why the Great Depression occurred and what the government should do to disallow such an economic downfall from ever happening again. As Robert Skidelsky, a British economist, said, Concepts we take for granted today, worry gross domestic product, the train of unemployment, the rate of inflation, all to do with general features of the economy, were invented by Keynes (Ch.4 Europe, 1931). His idea was that the government should spend money in order to keep full employment, nevertheless if it meant bringing about a deficit. In the long run, the increase in spending would benefit the economy overall. Roosevelt, being the President of the United States during this period, used this idea by creating government agencies to give citizens meet.As Daniel Yergin, an American author, mentions, Roosevelt and the newfangled Deal instituted a program of regulating capitalism in a way that had never been done before, in order to protect people from what they saw as therecklessness of the unfettered market (Ch.5 Washington, D.C., 1933). Regardless of the effort Friedrich Hayek spew in to convince citizens that the government should not be given more control over the economy, the majority followed Keynes view. Once World War II hit, numerous job opportunities opened up for the preparation of the war, and the Great Depression was defeated. After the war ended, many countries took to following Keynes conjecture, resulting in successful economies and in some cases, socialism.Hayek still did not think Keynes plan was going to w ork and wrote a sarcastic novel to disclaim this. The message he was acquiring across with this book was that too much government planning promoter too much government occasion, and too much government power over the economy destroys freedom and makes men slaves (Ch.6 London, 1944). In truth, Germanys market had diminished and hyperinflation had caused the German currency to become worthless, leaving them in need of a new leader to change their situation. This is when a new director of economic affairs, Ludwig Erhard, was appointed. He had similar views to Hayek, including the belief that price controls were not lemniscus inflation from occurring, nor were they helping the economy in any way.For this reason, Erhard got rid of price controls, leaving citizens with more freedom, and less desire to make trades in the downcast market. This is an example of Friedrich von Hayeks view of how the economy should be run. He vox populi Keynes idea was giving the government too much power over the economy instead of giving that influence to the citizens. Hayek followed the view of a libertarian named Ludwig von Mises who believed markets, like people, needed to be free from government meddling (Ch.3 Vienna, 1919). He model that the economy would fail because of the control over wages and prices.In the end, Keynes theory prevailed, which is why I find his argument more compelling. With the evidence to back off him up, he seemed to be on the right track in terms of how the government should react and how the economy should be run. Many people prospered from his ideas and beliefs. I believe that he made society feel more cover in terms of finances and their overall style of living.