But a worldwide depression holds the capitalist nations in its grip. Inopposition to both Keynes and Hayek stand not only Hitler's Third Reich but Stalin's Soviet Union, schooled in the communist ideologies of Marx and Lenin and bent onobliterating the capitalist system altogether For more than half a century the battle of ideas will rage. From the totalitarian socialist systems to the fascist states, from theindependent nations of the developing world to the mixed economies of Europe and the regulated capitalism of the United States, government planning will gradually take over thecommanding heights.
But in the 1970s, with Keynesian theory at its height and communism fully entrenched, economic stagnation sets in on all sides. When a British grocer'sdaughter and a former Hollywood actor become heads of state, they join forces around the ideas of Hayek, and new political and economic policies begin to transform the world. "