Commanding Heights – the battle of ideas Over centuries, the question of how much control the government should have over the market remains a controversial issue among economists around the world. The documentary Commanding Heights examines this issue closely by explaining the changes in the role of government in the market economy through different times such as World War I and II, the Cold War, and the Great Depression, etc. Particularly, the video focuses on the “the battle of ideas” between John Maynard Keynes and Friedrich von Hayek, the two most influential economists of all time, who support two completely opposing ideas.
At the start of 20th century, with the development of technologies, the world entered the “First Age of Globalization,” …show more content…
Both philosophies have some flaws and can be generated circumstantially to help the market and global economy. Personally, I believe Keynes’ theory would be a good solution to assist revival of an economy following a war, in which the government needs to step in and regulate prices and wages until the situation is improved. Nevertheless, in the current economic sluggishness, I think Hayek’s theory would be a better fit. In my opinion, the current recession is the result of too many regulations and taxes on production and services in the U.S. These policies, though might seem to be beneficial for the national economy as a whole, are not subjected to other countries in the global market. This will create a disadvantage to the U.S. economy on the international market and possibly cause an increase in imports and decrease in exports, which results in a decline the overall GDP. In times, different economic theories can be applied in response to changes in the market situation to ensure the well being of a nation. John Keynes and Fried Hayek offer two opposing theories with both pros and cons. Today, the U.S. seems to follow the path of Hayek’s philosophy of free market. However, no one knows when John Keynes’ idea would become beneficial to help improve the nation’s economy. After all, the market economy is never stable, but rather fluctuate
At the start of 20th century, with the development of technologies, the world entered the “First Age of Globalization,” …show more content…
Both philosophies have some flaws and can be generated circumstantially to help the market and global economy. Personally, I believe Keynes’ theory would be a good solution to assist revival of an economy following a war, in which the government needs to step in and regulate prices and wages until the situation is improved. Nevertheless, in the current economic sluggishness, I think Hayek’s theory would be a better fit. In my opinion, the current recession is the result of too many regulations and taxes on production and services in the U.S. These policies, though might seem to be beneficial for the national economy as a whole, are not subjected to other countries in the global market. This will create a disadvantage to the U.S. economy on the international market and possibly cause an increase in imports and decrease in exports, which results in a decline the overall GDP. In times, different economic theories can be applied in response to changes in the market situation to ensure the well being of a nation. John Keynes and Fried Hayek offer two opposing theories with both pros and cons. Today, the U.S. seems to follow the path of Hayek’s philosophy of free market. However, no one knows when John Keynes’ idea would become beneficial to help improve the nation’s economy. After all, the market economy is never stable, but rather fluctuate