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Sample Essay on Commanding Heights Episode 1 – The Battle of Ideas

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Sample Essay on Commanding Heights Episode 1 – The Battle of Ideas
  1. The two major economists featured in the film are Friedrich Hayek and John Maynard Keynes who had rival views on western economic theory. Keynes believed that an increase of government spending could restore economic growth in the economies. On the other hand, Hayek supported free market policy in the economy even if marginalized during at the time.
  2. At the signing of the treaty of Versailles that ended the war, Keynes walked out because he understood the upcoming economic chaos. He had earlier predicted stiff war consequences and harsh regulations that would lead to the financial collapse of the economy.
  3. Socialism can be described as a common ownership in terms of production, management of the economic system and the political frameworks. In 1917, the new Soviet Union adopted pure communism approach that governed the economic policy of the country. However, it was known specifically as war communism due to its focus on controlling agriculture during the war period.
  4. After the labor party won the national elections in 1945, United Kingdom adopted a democratic form of socialism. This happened after the decline of communism in the political landscape.
  5. War reparations on Germany would affect the monetary platform of Germany as it caused a rise hyperinflation. Such inflation would destroy the entire middle class. This affected the overall German economy leading to political instability.
  6. The adoption of the Keynesians programs helped deal with great depression effects in the United States. Keynesians programs followed after WW11, and caused the end of the great depression due to its anti-trust regulation policies and financial regulations that supported the growth of the domestic economy.
  7. India’s model of economic development is based on socialist-based policies including the state-ownership of the country’s sectors. Also, the model emphasizes on a free market economy. The economic model is effective leading a double growth of the average income in India.
  8. The central theme of Hayek’s “Road to Serfdom” is the conflict between the two existing economic systems. They include the development of socialism and fascism in the society. The economic systems were influential to economic planning in the economy.
  9. In the 1970s, the position of United States as the main challenger of capitalism was affected by various factors during the golden age. Such factors include increasing unemployment and inflation, reduced productivity, stiff international competition. This prompted the demise of the golden age in both America and in Western America.
  10. Both the UK and the U.S faced serious economic difficulties from debt crisis in the 1980s. The international organizations including the World Bank’s Structural Adjustment Lending and the IMF helped the economies in dealing with the debt crisis. Their strategies and macroeconomic tools helped steer economic recovery.

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