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Keynes’ first notable career move was during the Treaty of Versailles, France, 1919 as a part of the British Peace Delegation. After the end of World War I, the victors demanded that Germany pay reparations for the cost of damages and injuries. Keynes felt this was too rough for the already economically unstable Germany. “If we take the view that Germany must be kept impoverished and her children starved and crippled, vengeance, I dare predict, will not limp. Nothing can delay that final war that will destroy the civilization and progress of our generation.” (Cran, Web) Keynes’ main fear was the German people would revolt against the other countries due to their failing economy. Keynes resigned from his position with the British Peace …show more content…

However, due to Germany’s violent history, no one followed in the steps of the successful nation of use Hayek’s theory.
We can see the implementation of Keynes’s and Hayek’s theory throughout history and even in today economy. Keynesian economics was created by the British economist John Maynard Keynes in the 1930’s. The theory is the idea of increasing the government spending and lower taxes in times of depression. In times of economic prosper the government supported to cut spending and raise taxis to save up for the next depression. An example of a country using Keynesian economics to stop an economic depression is during the Great Desperation. Franklin D. Roosevelt the president during that time used Keynesian to push the U.S. out of the Great Desperation. In the movie, they talk about the steps taken to help the U.S. “They were at war with the Great Depression, and they responded with frenetic activity, relief programs for the unemployed, for the hungry; programs to get people back to work.” (Commanding Heights, Daniel Yergin).
Friedrich Hayek was a strong defender of the free market and the invisible hand theory. The invisible hand theory is belief that the market will fix its self with no government help. Hayek viewed government intervention in the free market as a restriction on freedom its self. The Austrian school of economic thought where Hayek study, predicted the down fall of Soviet Russia “predicted that the new Soviet socialist economy would never

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