Conversation With America
The old Republican adage When the economy is slumping, start a war is not the result of coincidence; its part of an economic plan that brazenly includes the use of war as a method of stimulating the economy.
The PBS TV Series Commanding Heights: the Battle for the World Economy based on the book "The Commanding Heights: the Battle Between Government & the Marketplace That Is Remaking the Modern World" by Daniel Yergin, Joseph Stanislaw and Daniel Yergin provides us with a historical view of the implementation of economic theory since the early 1900s, when U.S. Globalization steps began with the creation of the Federal Reserve Board while Congress was out of session. See http://www.pbs.org/wgbh/commandingheights/ See Also Billions for Bankers, Debt for the Poor
As dry as all that sounds, youll find this to be an interesting, well-paced, and incredibly informative program. It will answer numerous questions youve had about the trends in government to supposed free-markets, deregulation of industries, the empowerment of corporations to be used as proxies for fulfilling constitutional federal responsibilities.
The PBS series begins with program 1: The War of Ideas. It traverses the territory describing how the same economists responsible for our own policies were the same economic theorists involved with Hitlers Germany and the use of hyper-inflation* as a means to alter the perception of the people to accept totalitarianism. John Maynard Keynes (pronounced canes), whose theory is often referred to as Keynesian Economic Theory (author of The Economic Consequences of the Peace, and the General Theory of Employment, Interest and Money 1936) provided the theory for FDRs New Deal.
The model suggested that governments should fund economic growth, interest-free, buy back companies that dealt with public services and trusts (such as utilities, health care, oil), and allow the free market of consumer and durable products regulate itself, except where corporations needed to be tamed because of extremes and monopolies.
Friedrich von Hayek is the other economist. His theory, not as popular back then, but the basis for globalization (a pseudo collaboration with Milton Friedman, the father of our economy). Almost all, would suggest that a free a market system was a preferred economy, but that planned economies ones in which the government controlled growth, economic stimulus and economic suppression provide greater stability. Orignally. Friedman changed that with his theory that a free-market economy required no central government at all.
In order to gap the interests of the largest corporations and individuals with the greatest wealth, policies would empower corporations to control major public services. Insurance companies make an excellent example of how government uses corporations in lieu of "socialized medicine". The problem is that the insurance provider is motivated to save money, not spend it on your health.
von Hayeks theory became the fvorit of Margaret Thatcher and Ronald Reagan at the same time, and the accepted policy of the United States. He called it Trickle-Down Economics. But dont be fooled, the movement is not solely entrenched in the Republican Party. Far from it.
Examples of the differences between Keynesian and Hayek Economic theory application:
Keynes would have had the government create what is now referred to as socialized medicine. Keynes would have us believe that the government should take on full responsibility for the well-being of its citizens, without the possibility of corruption caused by corporate profit lines. It would suggest programs like Social Security. In fact, it was instrumental in the creation of Soial Security Insurance.
Think about the implications. Thats Corporate Socialism. Thats what we live with today, thats where were going. And the government supports it by creating laws to protect insurance companies from law suits, removes the right to sue over violations of silly things like epa standards things that repeal the rights of Americans to choose their own way of life and expect good faith, good intent and accountability from its leaders.
Interviewees include: Dick Cheney, George Bush Sr., George Schulz, Margaret Thatcher, Jeffrey Sachs (Harvard Economist) and so many other people, in a way that links them to historical events itll send chills up your spine.
Nearly all American political leaders related to economics were students or associates of von Hayek and Friedman, including those in the White House now. Presidents, secretaries of treasury, heads of the Federal Reserve. The world-wide list is long.
Watch the PBS series if you dare once you watch, you wont be able to ignore it.