One thing you can say with reasonable certainty, however, is that when the government interferes in the pricing mechanisms of the free marketplace, problems are bound to follow. John Maynard Keynes is indisputably the most influential economist of the 20th century.
In fact, as J. The wealth of the ancient city-states of Venice and Genoa was based on their powerful navies, and treaties with other great powers to control trade.
This evolved into nations designing their trade policies to intercept the wealth of others mercantilism. Occasionally one powerful country would overwhelm another through interception of its wealth though a trade war, covert war, or hot war; but the weaker, less developed countries usually lose in these exchanges.
It is the military power of the more developed countries that permits them to dictate the terms of trade and maintain unequal relationships. As European and American economies grew, they needed to continue expansion to maintain the high standards of living that some elites were attaining in those days.
This required holding on to, and expanding colonial territories in order to gain further access to the raw materials and resources, as well exploiting cheap labor. Those who resisted were often met with brutal repression or military interventions.
This is not a controversial perception.
President Woodrow Wilson recognized this in the early part of the 20th century: Since trade ignores national boundaries and the manufacturer insists on having the world as a market, the flag of his nation must follow him, and the doors of the nations which are closed against him must be battered down.
Concessions obtained by financiers must be safeguarded by ministers of state, even if the sovereignty of unwilling nations be outraged in the process. Colonies must be obtained or planted, in order that no useful corner of the world may be overlooked or left unused.
Richard Robbins, Professor of Anthropology and author of Global Problems and the Culture of Capitalism is also worth quoting at length: The Great Global Depression of that lasted essentially until was the first great manifestation of the capitalist business crisis.
The depression was not the first economic crisis [as there had been many for thousands of years] but the financial collapse of revealed the degree of global economic integration, and how economic events in one part of the globe could reverberate in others.
Given this situation, if you were an American or European investor inwhere would you look for economic expansion? The obvious answer was to expand European and American power overseas, particularly into areas that remained relatively untouched by capitalist expansion — Africa, Asia, and the Pacific.
Colonialism had become, in fact, a recognized solution to the need to expand markets, increase opportunities for investors, and ensure the supply of raw material. In Rhodes said: I was in the East End of London yesterday and attended a meeting of the unemployed.
I listened to the wild speeches, which were just a cry for breadbread, and on my way home I pondered over the scene and I became more than ever convinced of the importance of imperialism.
The Empire, as I have always said, is a bread and butter question. If you want to avoid civil war, you must become imperialist. As a result of this cry for imperialist expansion, people all over the world were converted into producers of export crops as millions of subsistence farmers were forced to become wage laborers producing for the market and required to purchase from European and American merchants and industrialists, rather than supply for themselves, their basic needs.
World War II was another such battle, perhaps the ultimate one. However, the former imperial nations realized that to fight like this is not the way, and became more cooperative instead. The Soviet attempt of an independent path to development flawed that it was, because of its centralized, paranoid and totalitarian perspectiveswas a threat to these centers of capital because their own colonies might get the wrong idea and also try for an independent path to their development.
Because World War II left the empires weak, the colonized countries started to break free. In some places, where countries had the potential to bring more democratic processes into place and maybe even provide an example for their neighbors to follow it threatened multinational corporations and their imperial or former imperial states for example, by reducing access to cheap resources.
As a result, their influence, power and control was also threatened. Often then, military actions were sanctioned. To the home populations, the fear of communism was touted, even if it was not the case, in order to gain support. From Colonization to Globalization, Ocean Press,p.The Austrian School is a heterodox school of economic thought that is based on methodological individualism—the concept that social phenomena result from the motivations and actions of individuals..
The Austrian School originated in lateth and earlyth century Vienna with the work of Carl Menger, Eugen Böhm von Bawerk, Friedrich von Wieser and others.
Jerry O’Driscoll explains how a competent understanding of the phenomena requires Hayekian thinking. The Hayek vs.
Keynes Rap — “Fear the Boom and Bust” Posted on January 25, by Greg Ransom A phat jam from Russ Roberts & Co. Download the song here. Nicholas Wapshott discusses the groundbreaking ideas presented by Freidrich Hayek in response to John Maynard Keynes's positions on government intervention and.
When someone questions the effectiveness of Keynesian economics, the obvious reply is: Remember World War II? The British economist John Maynard Keynes argued that there is a role for government intervention when aggregate demand for goods and services drops, as it did during the Great Depression.
Without increased public spending to make up for decreased private spending, he said, an economy. In its introduction, this short book lays out its goal: an examination of the works of Friedrich Hayek and John Maynard Keynes, to “get an idea of the current relevance of their two major studies as .