In order to survive, capitalism had to fix its inequalities and promote democratic values. Capitalism 2.0's main feature was its recognition that unregulated markets were actually harmful, so electing knowledgeable government officials to look over the economy was necessary to eliminating the chaos of unrestricted capitalism.

             Keynesian economics reached its high point from 1946 to 1969; unfortunately Keynesians' theories had to come to an end. Due to large U.S. spending on the Vietnam War, as well as inflation and terrorism in Europe, added to the growing financial pressures. In 1971, the U.S. removed the dollar's value from gold, separating the global monetary system instituted after WW II. Oil prices went through the roof during the 1973 Arab oil embargo, and the resulting high unemployment and inflation put economies into a decline for most of the 70's. Once again, capitalism had to reinvent itself in order to survive.

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             In Capitalism 3.0 the "Thatcher-Reagan political revolution " responded to growing dissatisfaction with big government and massive spending. Monetarism provided the economic complement to the Thatcher-Reagan revolt, declaring that free markets would always do a better job of maintaining full employment and economic equilibrium than the state. The monetarists claimed that the massive inflation of the 1970's was proof of government's failure to manage economies, therefore leading to decline Keynesian capitalism popularity. Inflation worsened while unemployment levels rose. The only way to stop inflation was to let unemployment rise and to get rid of government from the economy. This concept that markets are right and the government is wrong reached its high point and ended in 2008 under President George W. Bush.

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             When learning from the past we can see that both the market and the government can be very wrong. In this new version, Capitalism 4.0, we recognize there is weakness in both.