The Commanding Heights
After World War I broke through, people in the world feared globalization. Ignorance was taking over people, fearing of what they didn’t know. They were skeptical, specially when terrorist attacks and depressions begin to happen. What people needed, and some still do, is to understand that globalization doesn’t make is dependent but interdependent.
After War World II, the world economy was down as well as the trust people had in their governments.
Governments and the marketplace both wanted to take over and reinvent the world’s economic order. The main question everyone wanted, and needed to know was “Which one is the best option? Which is the best style of ...view middle of the document...
With his ideas, he brought hope back to people, including governments, which many took his ideas and worked with them in their own economies.
Friedrich Von Hayek, was from Austria. A smart young man that became a soldier for his country, he experienced what it was to be next to dying people, stress and chaos. This influence was decisive in his life, it shaped his personality, leading him to the desire of changing the world into a better place.
Although his ideas weren’t world changing in his early years, they were when he grew older in which his ideas prevailed.
Hayek once said he was a mild socialist. He needed to know people were having opportunities and they were being protected, but at the same time he understood that people needed their freedom, that way there could be a balance between the market (people as consumers) and the government. He enrolled in Vienna University to study economics, his intent was to understand the core issue and fix the problems in the world, his main concerns were the poor, the government policies, fairness and equity, etc.
Keynes and Hayek went through Hitler’s leadership and also Stalin’s Soviet Union. Which created Hayek’s understanding of the issue, and he believed the government was taking freedom away from the people, in both situations.
Keynes and Hayek were friends, but intellectual rivals, both had great ideas and a great understanding of economics, but they were opposite to each other. However, both of their ideas are still shaping our economy today.
In general, governments would take ideas from Kaynes, and sometimes ideas from Hayek, trying to find a balance between them, giving people the freedom, but also having the government behind to protect them.
WWII destroyed the world; there was so much waste after that, especially in Europe. Countries were bankrupt, and people were starving and angry.
People wanted a revolution, they wanted to be free but they were idealistic and anxious to have a socialist system.
However, prices were hard to work with in a socialist country, what people really needed was a system that could work and keep things going, while still being able to give them the freedom they have longed for so long.
Every day life was being transformed, technologies, the telegraph and the telephone were a huge change, and distance was changing, disappearing. The progress of man had made chaos. People were now understanding that globalization was happening faster than they thought and they needed to keep up with it if they didn’t want their economies to be left out of this huge, and amazing change.
Von Mises believed markets were like people, they needed to be free, not having the government taking their freedom away. He said that markets work, governments don’t. This accusation was the bottom line of this ideas, he believed that by giving people the necessary freedom they would help the marketplace and with it, the economy. But when the government comes and has...