NAME ; HAMZA
SURNAME ; OMAR
31 JULY 2014
As the world progresses and moves forward into a global economy, countries needed to adept to the requirements of this modern era and develop their economic systems in order to survive in this new age . This all dated back to, two very influential figures with rival views and their schools of taught which had a huge impact on western economic theory in the 20th century. I will touch on the impact of these certain economic systems and the effect it had on major countries and how the rest of the world was about to change.
Battle of ideas
Friedrich Hayek and John Maynard Keynes were economist with rival views and their schools of taught had a massive impact on western economic theory in the 20th century Hayek believed in a free market economy. This is a type of economy that is known as capitalism in which individuals own all property and organisations and they compete with each other for market share. In this type of economic system the government’s involvement is not restrictive. Lenin opposed global trade and he was more in favour of communism. This is where individuals are not permitted to own any property as everything is owned by the government. Keynes believed in a more socialistic economy. This is the system where individuals own some of the property but your major industries are owned by the government. This system relies on government interference such as monetary and fiscal policies which help the government regulate the economy. In Germany, after the world war 1, hyperinflation hit the Germans which ensured the collapse of many bank account holders and this caused working class citizens to lose out on their personal savings and many blamed it on communism. USA had a similar catastrophe as many people invested their returns in stock markets which eventually crashed and this resulted in banks closing down and people pulling out their savings. All these events gradually led to the...
Bibliography: (Oosthuizen F.J;2014 Business Management a contemporary compilation ; page 5; economic systems ;published by FVBC; ROODEPOORT)
(Stanislaw, J. & Yergin, D. (2002). Commanding Heights: The Battle OF ideas. Virginia: PBS.)
(Stanislaw, J. & Yergin, D. (2002). Commanding Heights:. Virginia: Agony of reform PBS.)
Cameron, R. (1993). Europe’s Second Logistic. Chapter 5 in A Concise Economic History of the World from Paleolithic Times to the Present. New York: Oxford University Press.
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