The Birth of a New Paradigm

By Alvaro J. de Regil

This is the narration of the increasing conflict of opposing economic interests between the European empires that caused the Great War of 1914 and of the excesses of the Gilded Age and of money speculation that gave way to the Great Depression in the U.S.

Its purpose is to further explain the process of economic theory and show how the excess of Capitalism finally gave birth to the Keynesian paradigm that puts emphasis on the responsibility of governments to balance the economy to procure the general welfare of society. The essay opens stressing that, despite the tremendous economic progress in Europe, the structure that caused the impoverishment of workers remained; for the accumulation of wealth, which relied on the exploitation of labour, dominated the view of governments and economic centres of power.

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