If John Maynard Keynes was alive right now he would be laughing his head off. Modern business orthodoxy believes in a free-market without government interference. In the early 1980s the government of the UK buried the Keynesian economic model. The US of course was always wary of government interference - but still they continued to reduce regulation. Over 20 years of unbridled and unregulated financial markets and look at the mess! Short-sightedness and bad planning brought on by greed.
John Maynard Keynes advocated interventionist government policy, by which the government would use fiscal and monetary measures to mitigate the adverse effects of economic recessions, depressions and booms. Most of the western governments rejected government regulation, control and interference in the markets. The companies of course, were not above accepting handouts from these "non-interventionist governments".
Which brings us to 2008 and the current crisis. The government of the UK has effectively nationalised the Halifax Bank of Scotland, Royal Bank of Scotland and Lloyds TSB. Even the great beacon of capitalism, the US had to step in and bail their major banks. It seems they are capitalists on the way up and socialists on the way down.
During the past 100 years, we have seen Fascism fail, Communism fail, Socialism fail and now finally Capitalism in trouble. All competing theories of government have their pros and cons (discounting the obvious cases of Genocide and violence). All of these competing theories fail to take into account the inherent corruption and greed of those who are driven to power.
Hmmm... maybe we should only have leaders who don't power - they have to be dragged kicking and screaming into office. The personality type of those drawn to seek power seems to be inherently corrupt and greedy. Even those idealistic few who gain power are ultimately corrupted by power. If someone can come up with an answer, I would like to hear it.
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