The social and economic catastrophe was one of the worst problems after World War I and lasted through the 20th century. The Battle of Ideas, was a battle between the power of government and the forces of the marketplace. For over half of a century, the world was moving toward a government control — from a communist world to a mixed economy.
In the 1980s the old policies of these economies began to fail dramatically, and two economist were battling the ideas of what they thought will work better for our geopolitical landscape. John Maynard Keynes was from Britain and believed his revolutionary theories on unemployment and recession was going to help government take a lot more control over their economy. Friedrich von Hayek was an Australian and advocated for a free-market capitalism. Ludwig von Mises was an economist that predicted that new Soviet socialist economy would never work, because the government controlled wages and prices.
These prices are the very heart or centerpiece in which is what makes the economy work, without these set standards our economy would be in chaos. This is one of the effect that has been on our geopolitical landscape. Like suggested in the video “with our traffic signals the street will be in chaos.” That is the same with our economy if we do not have a centerpiece, guidelines or standards this can cause a chain reaction not just in one economy but all over the world.
There is a lot of connection to Globalization in these videos. The world was moving from a communist economy to a mixed economy. In the videos it talks about The World Bank Group and The International Monetary Fund, both of these play a huge role in Globalization and are global institutions. Some of the supporting factors of Globalization in the video were as follows, technologies changed played a big part in the changing economy. Better telecommunication factors helped people communicate quicker and help people get the important information that was needed. This is very important because the faster they can communicate the quicker everyone is on the same
page and know what is going on in the economies.
In the video they also talked a lot about political economy, political systems such as a democracy and totalitarianism. They also were also showing the differences between market, command, and mixed economies. I also saw connection between legal systems such as common law, and civic law. The regulations and standards they try to set to create less chaos were some examples of the legal systems. These systems helped get the economy back on its feet.
Cultural and society plays a big role in connection to these videos. I do believe what John Maynard Keynes theory was suggestion. If the people were not afraid to spend some money and go out and purchase items, this will help the economy get its feet back up like they did after “The Great Depression.” I also think this depends on this theory because not everyone has money to spend, or savings to use. I think the government needs to have set standards to help create jobs and help create an income for the people.