History tells us that such episodes can lead to everything from financial repression to higher taxes In November 1939, in the early months of World War II, the Austrian economist Friedrich August von Hayek wrote a short article in The Spectator magazine.
Hayek was responding to two articles written by John Maynard Keynes a few weeks earlier for The Times newspaper, on how to pay for the war.
Keynes had called for suppressing consumer spending through higher taxes as well as compulsory savings. The compulsory savings would give the government the money to fund the war effort.
After describing Keynes as “the most fertile mind among living economists", Hayek put forth his own proposal. He argued that there was “a strong case for a capital