The video discusses many important facts and events that have happened between 1917 through 1945 that shaped economic development. John Maynard Keynes is said to be the inventor of macroeconomics. He helped to get the British government organized in World War I. Keynes was not a fan of reparations which meant having Germany fund the cost of the war. Since the British continued to go after Germany to have them pay for the war Keynes decided to go back to England where he resigned. Since he resigned Keynes wrote a book The Economic Consequences of Peace. In 1931 Keynes wrote another book about the Great Depression and how to fix it. The book was called General Theory and was published in 1936. Friedrich Von Hayek who once was part of the socialist group. Where the concern for the poor and fairness would help the government’s policies. While Hayek was at the University of Vienna he began to socialize with Ludwig Von Mises. Von Mises believed that the government does not need to be involved in the people’s markets. They believed that the market will take care of itself. Hayek believed that inflation was evil and it became his main focus in economic philosophy. In 1944 Hayek wrote The Road to Serfdom because he was afraid that the ideas of Keynes was sending the world down the wrong path. Hayek’s book discussed that if the government has too much say then the government has to power. When the government has too much then it ruins the freedom and makes people slaves. In 1945 World War II was over and the troops came home this day was called V E Day. In the 1920’s the stock market was booming all Americans where buying stock. The favorite stock to purchase was in radio companies such as RCA. The stock for RCA rose dramatically over the years from one dollar and a half a share to over six hundred dollars a share. While things seemed to be going good on October 24, 1929 “Black Thursday” the stock market crashed. Prices dropped drastically and there was no end in sight. This event started the depression in America this depression left people with no money, no way to earn a living. There was no way to repay loans or even spend money. The downfall of the stock market also meant that the banks would fail and with them failing people began to withdraw all of their money. Unfortunately there were millions of people who lost everything due to not being able to withdraw their money. Keynes believed that the government needed to be involved in the markets and finances of the people. In the stock market crash the government was not able to stop the sinking economy in some instances they made it worse. This demise 15 million people where unemployed and hungry. In 1933 Hitler became chancellor of Germany. Also Franklin D Roosevelt became president and vowed to fix the economy his plan was called the new deal. This program helped with unemployment, it helped get people back to work. The new deal gave industries more rules and regulations. The New Deal basically came in to stabilize the market and industry. Things began to look up for America people were working, families weren’t hungry. This video relates to economic theory because it discussed the nation’s economy as a whole. It focused on many issues such as inflation, unemployment and economic growth this concept is known as macroeconomics. Macroeconomics explains why economics grow and change and why the growth is sometimes interrupted. Economics is about making choices an in this video there were choices to be made. They had a choice to follow Keynes and allow government to have control over the economy or to follow the ideas of Hayek and let the market or economy fix itself. This video seems to mirror somewhat the recession that we are going through now. There is a lot of people with no money, no way to repay loans and seemingly no jobs. Since people can’t repay loans houses are being foreclosed on and cars are being reposed. The banks have made it hard to borrow money. Honestly when looking at the video it seemed like things just go in a complete circle. Everything that happened back then from the stock market crashing, to the two World Wars, to even the recession or great depression as it was called back then it is all coming full circle again. There are millions of people who are without jobs, home, and even food to eat. There are millions of people who rely solely on the government to survive. I can see and understand Hayek’s of view point that when the government has too much control you become a slave you have no freedom. I see it every day with people who get government assistance they get comfortable and relaxed with their situation. The government tells them where they can live, what they can eat, how much money they can receive and when they receive it. It seems as though the government controls everything they hold ultimate power. They control everything how much money is made, what we can produce, when we can produce it. It seems as though sometimes that because they have ultimate control things are always failing. Hayek says that the market will fix itself I guess that can be seen as what goes around comes around if it goes down it must come up.