The increasing misery and unemployment for workers, and falling profits for capitalists meant to Marx that the system had to be destroyed. Marx believed that something had to be done to prevent workers from being exploited, dehumanised and alienated from their work. .
John Keynes believed that the failure to provide full employment and the arbitrary and inequitable distribution of wealth and incomes were the outstanding faults in the economic system. He believed that there is social and psychological justification for significant inequalities of incomes and wealth. They can be justified because there are valuable activities that require the motive of money making and the environment of private wealth ownership. Keynes argued that some inequality is necessary to provide sufficient incentives to entrepreneurs to undertake investment. Karl Marx was critical of capitalism and thought that under capitalism, inequalities would only worsen. He believed that inequalities would result in an increase in unemployment. Marx was however, very supportive of communism. He believed that income distinctions would disappear and goods and services would be distributed according to need if there were pure communism. Marx summed up his views by saying that economic life would be governed b the rule "from each according to his abilities; to each according to his needs." .
John Keynes believed that government action is essential to stabilise an unstable economy, end economic recessions and depressions, and produce full employment. He recognised that his solution to the unemployment problem of the 1930's would come as a shock to those who believed in a laissez-faire economy. Keynes rejected a laissez-faire economy because market based economies do not produce full employment immediately, he said there will always be unemployment. He believed there was an inherent weakness in the market system. To overcome this he believed that government action was quintessential.