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The Battle of Ideas - Coggle Diagram

- - - - He joined a circle of a libertarian named Von Mises after the first world war. He believed markets needed to be free from the government's control, just like people are. He predicted that the new Soviet socialist economy wouldn't work because the government controlled all prices and wages. As a result, there is not functioning price system to tell customers and producers how much something is worth.
    - - Hayek feared Keynes' ideas will go wrong during WWII, so he wrote a book dedicated to socialists explaining his own ideas. Even after the war, Hayek was worried. He thought that the democracy was going to fail in eastern Europe because democracy is impossible without a free economy. Hayek's ideas were irrelevant and shunned in the academic world during the 1970s because of the success of mixed economies.
- - - - Keynes was an influential economist, whose ideas changed the world's economy. Keynes believed that government control & planning over the economy was crucial, and was against freedom.
    - - Seeing that this plan worked for the US to escape the depression during WWII, he hoped that what worked in war, can work in peace as well.
    - - Keynes spent World War I advising the British government how to plan their economy. After witnessing the great depression, Keynes realized his nightmare had came true. He wrote a book about what caused the great depression in order to change the economy. His solution to unemployment is for the government to spend money in order to restore and maintain the employment rate.