Commanding Heights Reflection

After watching the video episodes of an economic informed video of Commanding Heights about the American Economy, and the role governments spent, I realized that the three idea’s of American Economy was the legislation that commanded the people, the ideas of the economists and the social impact it had towards the people; the argument between free markets VS set markets allowed people to understand the faults of both, felt in the past and the future. Ultimately, I realized that it is impossible to have one type of economical decision to rule the market as there are faults, if there was mixture between socialism and power to the people.

John Mayer Keynes and Friedrich von Hayek had economic theories that allowed both markets to flourish, however Keynes decided that the markets of America can be controlled like a “well oiled machine”, in doing so, governments should control the market so the consumers can be controlled as if to be under communist-like rule. Therefore, the “animal spirits” of people cannot drive the markets and greed cannot prevail. However Hayek thought, it was possible to live under independent rule, that people should own the “commanding” heights. His reason behind this was that consumers as a result will be unpredictable and will fluctuate because the market isn’t set, he also believed that the market won’t crash because money flows in and out and the fluctuation will allow consumers to simply wait for money to return. He believed in a stock market where people had the chance to buy companies. The problem with both decisions is that when the president decides to go with one economic decision, the people will be affected on a larger level of magnitude, therefore if a government intervention were somehow able to coincide with free markets, a fail-safe proof market can be formed.

Personally, these market forces simply are too strong and have too much control, no matter if its a free market economy or government intervention. The reason to this is because once the mindset has been set to rule over with one economical type of power, the great power doesn’t take into account the faults created within that type of decision. Perhaps they are blinded by the foreshadow of the future.