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Commanding Heights ~Battle of Ideas~, By: Eddie Rabinovich, February 22,…
Commanding Heights ~Battle of Ideas~
Cambridge University
John Maynard Keynes, an English economist helped the British government defend freedom by planning the wartime economy
Believed in government intervention and a more hands on approach
Friedrich von Hayek, an Austrian economist believe government intervention was a threat to economic freedom
Believed that markets would self stabilize (free market)
Europe, 1910
First age of globalization
Telegraph and telephone revolutionized communication
Steamships and railways transformed transportation and trade
1914
Start of World War 1
Hayek served in the Austrian artillery
Vowed to work for a better world
Emphasized the problems with political organization
St. Petersburg, 1917
The Bolsheviks wanted to avoid capitalism
Founded and led by Vladimir Lenin
Promised to end the exploitation of all workers
Urged workers to fight against the global economy
Revolution made trade, commerce and private property illegal
Cambridge University, 1918
Keynes joined the British peace delegation in Versailles
The Allied countries wanted reparations from the Germans
Keynes disagreed with this and resigned
Vienna, 1919
Austria lost WW1 and it's empire
Revolution was looming; socialist and communist were in the lead for elections as it promised a more just society
Hayek enrolls at the University of Vienna
Meets Ludwig von Mises; he shares his economic/political views
Markets work and governments don’t
The new socialist economy in the Soviet Union wouldn’t work because it doesn’t have a functioning pricing system
Moscow, 1922
Seemed like von Mises' predictions were coming true
Wages and prices were fixed
Lenin needed a new economic policy
Said that farmers can sell their own goods and business can operate to revive the economy
2 more items...
Lenin dies
His successor, Joseph Stalin, introduces central planning
The Communist government planned and managed every aspects of the economy
1 more item...
Vienna, 1923
German and Austrian governments printed money to pay off reparations
Resulted in hyperinflation
2 more items...
New York, 1920s
Europe, 1931
3 more items...
Early 1920's
1 more item...
Black Thursday, October 24, 1929, the stock market bubble burst causing a downward spiral
3 more items...
Main Ideas
Beginning of 20th century - Less government intervention
Middle of 20th century - More government intervention
Late 20th century - Less government intervention
Swing from government to market and Keynes to Hayek ideals
Legend
Green = No specific country
Purple = Soviet Union
Light Blue = Great Britain
Yellow = Germany
India = Orange
Gray = Atlantic Ocean
Brown = Switzerland
Red = United States
Dark Blue = Austria
Dark Green = Sweden
By: Eddie Rabinovich
February 22, 2021