Ludvig von Mises( Frerich von Hayeks mentor). Hayek-Austrian Milton Friedman- Chicago School of Economics John Maynard Keynes- Cambridge University Jon Kenneth Galbrieth-Harvard Part-1 '17-October Boplshevik revolution- Lenin. By '21 Lenin said farmers could own la nd, sell crops, but the Bolsheviks were outraged since it was against the ideals of Marxism.Lenin died. Joseph Stalin imposed a stronger Socialist hold on the economy. After the 1st World War UK and US, Allied Powers, had ripped Germany for Reparat ions; German economy slowed and inflation (stagflation) was so high that a glass of Beer cost 1 billion Reichsmark. Fascim seemed the most promising ideal.Hitler rose to power. After Great Depression, Keynesian Principles came into effect. Keynes principle- (Inventor of)Macro economics( GDP,Inflation,unemplyoment rate etc);Central Planning; Before '29- US had a free market policy, until the radio stock bubble (R.C.A.). F.d.Roosevelt('33 to '45) started implemening Keyne's "General Theory". US econo my slowly revived and by '40 was up and rising.After World War-2, Keynes Attended the Bretton woods Conference in '44. Truman('45 to '53), Churchil, Stalin emerged as the victorious allies. Central Planning seemed to impress all the nations present at the conference. UK went to elections in '45; Churchil(Conservative) wanted to implement Hayek's theory of Free Markets. Clement Atlee ( Labor Party) supported Keyne's principles of Central Planning. Even though Churchil Won the war, he couldn't win the peace, and lost in the ele ctions. Labor took power and private owners were compelled to sell their businesses.Mixe d economy was created,(newly nationalised industries alongwith private enterpris es coexisted). Welfare care was provided free of cost. This was said to be bette r than allowing gamblers. Erhard, Head of the Allied Occupation of Germany, believed in Hayek's ideas. After 2nd world war German economy was in shackles, hyper inflation prevailed, n o price controls could control the inflation. Black Market had formed. The Deuts chmark was introduced as the new currency. Erhard abolished all price controls. Black MArket Disappeared. Then began German Economic Miracle. It overtook Britai n's more planned economy. India too modelled itself on a Socialist ideal after independence, under Nehru c entral planning prevailed. J.fKennedy('61-'63) also believed in Keynes. After 30 glorious yrs, stagflation rose,1963. Food prices went up, question was whether to fix a freeze on the prizes.Richard Nixon('69-'74) was in favor of doing something( We now knw that nothing shoud ha ve been done(Market forces would adjust the prices)).. Prices kept on rising. PRice controls created shortages. London '73- Britain's mixed economy was also in troublePrice controls were being used here as well. THE GOVT even decided the price of taxi fares, etc..(unbelievable) Ted Heath ('70-'74) was blamed and Conservatives were voted out of office. Labor (74-79). Keith Joseph was a minister in the Conservative govt. He knew where they went wr ong and they needed to change the conservative policy. At the Institute of economic Affairs(founded by Hayek).Joseph preached free mark ets. Attacked mixed economy. Joseph was a major influence on MArgaret Thatcher(79-90) By 74 Hayek sensed the world beginning to go his way. He got Nobel Prize in that year. 74 was a crucial year. Us economy was in shackle for first time since great depression. Chicago School thought that price control were limting growth and curbing compet ition. Regulations meant that major carriers like PanAm never had to compete with new c omers. LAkers airways offered cheaper air tickets. Jimmy Carter (77-81) In 78 the Civil Aeronautics Board was Shutdown. Competition was the new rule.Alt hough the effect was visible 20 years later. But inflation went out of control in 81, Carter's Keynesian policies(apart from that in C.A.B) wern't producing any results.Carter lost the elections in 81. With the British Economy in decline, strikes on the rise, People voted for Conse rvative Thatcher. Maggie cut Govt spending; against Keynesian views of increasing govt. spending i n bad times. Maggie believed in Hayek and Friedman's ideas of Free Market. Reagan('81-89) shared the same philosophy as Thatcher. But the only way he could get inflation down was by Monetary Contraction which m eant Recession for a short time before The Nation flourished. "If not Now, when? If not us, Who? " It took 3 years, 79-82 to slay the dragon of inflation. Reaganomics- Ltd govt. spending;modest tax rates;deregulation. His huge tax cuts led to deficits but the economy started growing steadily again . Free market forces were unleashed. Victory in the Falkland Islands( seized from UK by Argentina) ensured Thatchers victory in the elections.again.84. This enabled her to implement the policies upon which she had initially embarked , but hadnt yet produced any significant results. Atlee's govt. had Nationalised all the Major Industries. Nationalisation was Britain's Gift to the World. Now it was time to come up with an anti-dote for the same. Thatcher ended their(Nati onalised industries) dependence on Govt subsidies. Coal miners represented the l ast bastion of Socialist minds in the Uk. They had to be confronted. The Coal mi nes were losing money. Previously miners had brought down Ted Heath's conservati ve govt 10 years earlier. But the strike collapsed in a year. Privatisation. Sha res were sold to the public. Electricity. Telephones. Oil.Gas.COal.Steel.Trains.Planes.Water. Sold off into t he private sector.Less Govt. at the beginning of the 20th century. The More govt . Then Again less govt at the end of the 20th century. BAck to the start. Ofcourse not to forget the rise and fall of Fssascism and Communism.