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The Battle of Ideas
‘Commanding Heights - The Battle of Ideas’, is a documentary, which sheds light on how in the twentieth century, the economic policies, and in effect, governance models of various countries, were influenced and shaped by the ideas of two prominent economic scholars - John Maynard Keynes and Friedrich von Hayek. Keynes believed that Government should play a more proactive role in the economic system, while Hayek believed that the market forces should determine the course of the economy, and the government should not interfere.
The video meticulously explains to its viewers, how the turn of the century witnessed world countries adopting an economic system closer to the ideas of Hayek, which shifted towards Keynesian ways all through the middle of the century, and again embraced Hayek’s views during the century’s end, thus completing one full cycle. With views from economists, politicians, and writers, the video captures the tumultuous journey, Europe, USA, and the rest of the world took, in the past century while the political leaders tested one idea vs. another.
The video is not an economic lesson, despite being loaded with economic jargons and views, but is a full-fledged presentation of how people’s lives are impacted by the economic decisions taken by the policy makers. It elucidates how like war decisions, economic policy decisions changes lives of the people. It also talks about how individual ideas, particularly the influence of various thinkers over powerful leaders, as in the example of Reagan and Thatcher, will determine the course and future of a nation.
In 1914, nations crumbled, and from the ashes of the catastrophe there began a struggle between market forces and the powers of the State, which was won by the State. In the 1980s, the Cold War ended, and the market forces ruled over the Government control. In this decade, Western democracies are witnessing high levels of inflation and unemployment, not dissimilar to 1914. Will the cycle continue and Government would step in to take control of the ‘commanding Heights’ or will the Hayek’s way of ‘let the market correct itself’ will prevail, is yet to be seen.
However, if we are to learn any lesson from the history, it would be that economic slowdown and growing public discontent may lead to rise of powerful socialist leaders, be it the communist Lenin or fascist Hitler, but very few have succeeded in offering a sustained model. For now, it will be safe to say that we should put our trust in the market forces, which almost always finds a way to check the downward slide and continue upward.
Works Cited
Commanding Heights: The Battle of Ideas. Dirs. William Cran and Greg Barker. 2002. Web.
