question_answer

What key lessons did the politicians and economists learn from the interwar economic experiences?

Answer:

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

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

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

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

The second lesson is that the global economy is inter-related. The goal of full employment could only be achieved if governments had power to control flow of goods, capital and labour.