Question

What saved western capitalism after its low point in 1929-1932?

Answer 1

After the low point in 1929-32, western capitalism could be saved because of the fall in the socialism in the economies all around the world. Also, Keynes emphasis that private investment fall was the major reason of the 1930s depression in the United States emphasized the importance of private investment in overall aggregate demand of the economy in which capitalism played an important role.

Thus, fall of socialism and increased importance of private investment in the economy helped in saving western capitalsim after its low point in 1929-1932.