TAILIEUCHUNG - An Outline of the history of economic thought - Chapter 7

7 The Years of High Theory: I . Problems of Economic Dynamics I went to university in the fateful 1930, and during the four-year course I watched the almost complete collapse of the American economy. I also had occasion, at that time, to hear my Professor of Banking, who was also the Vice-President of the New York Federal Reserve. | 7 The Years of High Theory I . Problems of Economic Dynamics . Economic hard times. I went to university in the fateful 1930 and during the four-year course I watched the almost complete collapse of the American economy. I also had occasion at that time to hear my Professor of Banking who was also the Vice-President of the New York Federal Reserve admitting during a lecture that he did not know why the President had ordered the closure of all the banks the day before. My grandfather s bank did not open again and later my father also went bankrupt. I studied these events my conversion can be seen from the fact that the subject of my thesis was Marxism. Having observed the incompetence and impotence of the Government I decided to change to Economics hoping to find there the key to understanding the events even if this was rendered impossible by the useless orthodoxy of the period. Thus R. M. Goodwin Economia matematica Una visione personale 1988 p. 157 explained his simultaneous conversion to Marxism and economics. This was not an isolated case similar conversions flooded in during those years. The entire period from the beginning of the First World War to the end of the Second was marked by crisis a crisis which affected every sphere of bourgeois life from the economic to the social and from the political to the cultural. The outbreak of the First World War had sown doubts about the rationality of the international capitalist system. But the most lucid minds had immediately understood the deep reasons for the conflict and could not avoid acknowledging the truth in the arguments of those Marxist thinkers who had preached the dangers of imperialism and prophesized the great war. Then as soon as the First World War had ended the conditions were laid down for the Second as Keynes and a few other enlightened thinkers immediately understood. In the meantime a nation-continent had attempted its escape from capitalism with the Bolshevik Revolution an attempt which .

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