To what extent can the post-war boom be attributed to Keynesianism Essay

To what extent can the post-war boom be attributed to Keynesianism - Essay Example Nevertheless, the long post war boom was caused by destruction of capital, which occurred during the war, thereby leading to the rise of America as a hegemonic power. On the other hand, the notion indicating that post war boom was caused by destruction of capital is doubtful, since this was not the case after World War I (Moody, 2013, 1). Instead, the period after First World War was attributed to a long wave of downturn, which dragged for the period between 1920s and 30s. In addition, during this period, there was no economic hegemony in Britain by the end of nineteenth century; in fact, Germany and America was losing followed by Japan. In this case, the notion that destruction of capital contributed to growth that established an interrelationship between post-war boom and Keynesian theory. In fact, the reminiscent of Keynesian ideas indicate that growth is created through destruction of capital in order to offer employment for people to rebuild. USSR had trouble in growing their ec onomy during the 1920s due to physical destruction of their capital in the First World War; thus, they were forced to seek a replacement (Fine & Murphin, 1984, 56). On the other hand, Marxists value theory argues that growth is facilitated by destruction of value rather than capital destruction. ... In this case, Marxists value theory is disapproved, thereby creating the need to explore the Keynesian theory. Therefore, the paper will focus on identifying the extent to which that post war boom can be attributed to the Keynesianism. The post-war boom Initially, post-war boom was based on overview of `Fordist' methods, which regard to mass production of consumer goods and relation to the steel power and machine tool industries. Moreover, America established the new form of Fordist production during the 1920s, though it was introduced in Europe during the post war boom (Clarke, 1988, 174). In fact, this continued to expand through the depression that occurred in 1930s, despite increases in the rate of unemployment and living standards. Furthermore, the growth experienced in the industries was restricted through limitations of market size and the barriers of protectionists were establishing constraints in domestic market. There was a significant expansion of the new industries due to complexity military demands during World War II, whereby there were vehicles, aviation and electronics. On the other hand, during the post-war period there was a reconversion of various military branches dealing with production to peacetime environment in Britain. However, there were stringent restrictions involved in civilian consumption, whereby the world market was subdued by Britain. Moreover, Britain’s growth faced challenges due to the power of supplies, steel and labour. The post war period is also attributed to a Korean War spread, and methods of production to Continental Europe. During the post war boom there was a Dodge Plan established in Japan in order to halt reparations payments, which