>> in the first place they, well first of all keynes sdnlts know who hyack was. there was 16 years difference between the two of them. he was world famous when hyack is out him out. and hyack went to seek him out specifically norld to raise his reputation, really. they met in 1930 for the first time and instantly fell into arch argument. one of the great things about keenes he was so intellectually confident that whoever took him on he was happy to pick a fight and answer the question. then they resumed their fight in about 1931, or absolutely in 1931 when hyack was specifically brought over to the school of economics deliberately to bring down keyne,s in his tracks. anthat is when the debate began seriously, trying to untangle the differences of view about whether you if you see something going on that you could change, whether you should intervene or whether when you see something you don't like, whether you should shrug your solders and say well, there is nothing much we could do about that. >> rose: outline for us the differences in their opinion about the wa

now again, i'm sure i can't be the first person that's pointed out but after world war ii, keynes whoad been at the first five peace conference at the end of 41 and had warned that haven't been able to fit the allies by neglecting economic recovery, they were courting political disaster after world war ii of course keynes was instrumental in setting up the international monetary system because if you think about it, the kind of debt crisis that we have now both after world war i and world war ii, okay, and the was one of the reasons that the economy especially europe was frozen and the conventional wisdom was that it would reconstitute itself. okay? and keynes took the opposite view and the allies to make sure they didn't need the same mistake as after world war i. well, isaiah berlin was correctly for the very best biography of marks was stationed in the british and the sea in washington during and after the war and wind hayek had written this all the people who couldn't participate in the war effort royte books, sort of prophetic books and to the free-market space. so hayek came ove

maynard keynes came out with his ideas with public works, stimulate aggregate demand, of waterbury intervention he will eliminate unemployment through that. and then at fred vincent said "japanese have surrendered he wants massive government intervention and history shows us business labor agriculture cannot assure the maintenance of high levels of production. in other words markets don't work. the government must assume the responsibility to take measures broad enough to meet the issues. one reporter i f. stone agrees as to many others. new agency's new ideas and new directions are necessary. and dice the unemployment. they are no longer available to the alien capitalism. that dealing capitalism no longer has the worst transfusion for the 12 million soldiers are coming home immediately. we have to have programs for them and without massive government programs new programs to build roads, to train people, without the use roosevelt and truman of one do to build the tennessee valley authority but others around the country and other types of public works programs and the use of gm's and the buildi

lord commander keynes came out with this idea that you need public works, stimulate aggregate demand, lots of government intervention and you will eliminate unemployment through that. and so what secretary of treasury vincent, another kentuckian by the way, fred vincent, truman's secretary of treasury says, quote -- he says this right after the war the japanese have surrendered and he wants massive government intervention and he says history shows us, business, labor, agriculture cannot ensure them the maintenance of high levels of production and employment. in other words, markets don't work. the government must assume responsibility and take measures broad enough to meet the issues. reporter i.f. stone completely agrees, as do many other reporters. stone says, quote, new agencies, new ideas, new directions end necessary or quickly if we are not to suffer relapse into a chronic mass of unemployment. the war's transfusions are no longer available to an alien capitalism. this ailing capitalism no longer has this worse transfusion. 12 million soldiers are coming home. immediately we've

. >> following lord keynes other marks, take a look at lady trumping tin sitting near him on the conservativeches. >> survivors of world war ii have started to look pretty old too. claiming to be the only survivor i think in this house of those who gave great service to their nation in the second world war. >> that cheeky gesture became an internet sensation but probably didn't surprise those in the know. the robust lady served at the code breaking -- breaking bletchley park becoming -- before becoming a counselor, minister in the conservative peer. a reporter duncan smith caught up with her and asked her why it was important to hold a remembrance day debate. >> i think any talk about those days should be remembered by people who don't really know what being in the war is like. i think memory is very short unless you actually experienced it yourself. therefore, thought it was extremely interesting that hardly any of those people who took part in, think there were 28 speakers, were alive then. >> you are one of a few peers who actually worked in the second world war. what exactly did you do? >

guest: i think that keynes was probably free market at times, but he argued that we should just movehe business cycle. there is a big academic opinion. i am not following him in my philosophy. in my house if i asked one of the kids to do something and they really don't like it they will say that is keynsian. in terms of the 0% federal income tax, it depends. but if you replace the income tax with a basic value added tax, if we would have a much more efficient economy and lots of job growth. host: i'm sure that your wife appreciates those rhetorical statements. thanks for being here, kevin. we will follow on last week's blackout of popular web sites like wikipedia and look at the anti-piracy legislation in congress. first, news update from c-span radio. >> republican presidential candidate and former speaker of the house newt gingrich speaking earlier on abc's good morning america says his victory in the south carolina primary shows people want a nominee who is going to shake up washington. he went on to accuse gop contender mitt romney of saying things "he knows are false" about mr.