Question

briefly explain the key lesson which economist and politicions drew out from inter war economic experiences .​

Answer 1

Explanation:

Mention the two key lessons that politicians and economists drew from inter- war economic experiences

The economists and politicians learnt two key lessons from the inter-war economic experiences.

(i) First, an industrial society based on mass production cannot be sustained without mass consumption.

(ii) There was a need for high and stable income which depends on full employment of the people.

(iii) Since market alone could not guarantee full employment; government should intervene and take steps to minimise fluctuation of market forces.

(iv) The second lesson is that the global economy is inter-related.

(v) The goal of full employment could only be achieved if governments had power to control flow of goods, capital and labour.