"Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem
The simple truth ...
The simple truth which Hayek realized is that government intervention cannot grow consumer demand. To create consumer demand, people need jobs, because when you have a job you can buy things, which increases productivity to make those things. Unfortunately, we take more from the job creators, and give to those who produce nothing, except a temporary increase in consumer demand, but it does not last. Just look at Europe and you will understand
Also, the majority ...
Also, the majority of the population is limited to the spectrum of the main stream media. The media is ran by two parties that love spending money we dont have. The only way to spend money you dont have, aka borrowing 46 cents on every dollar, is through Keynesian economics.
"Libertarians never ...
"Libertarians never seem to address why the population doesn't jump on board with this economic paradise they're proposing." Because the majority of the population does not want any more responsibilities. They want government to take care of them. 46 million americans want food stamps. They jsut want more and more, and they get it. Now, we are out of money, and if you have been paying attention to Europe, you will get a glimpse of what Keynesian economics is going to bring us.
Hayek economics is ...
Hayek economics is free market capitalism nice try though.
Too little ...
Too little regulation.... what about congress forcing banks to give loans to home buyers right before the housing collapse? Was that government intervention a good thing? Realize.
lol bush is big ...
lol bush is big government just look: patriot act, war spending, low interest rates and you still say that little deregulation is the problem? let me tell you one thing sr THE PROBLEM IS THE GOVERNMENT!!
new zealand, ...
new zealand, singapore, hong kong, canada, australia are neoliberal countries and they don't have ressecion PLUM
troll fail.
troll fail.
tell me, when has ...
tell me, when has there not been a regulation in place in the 20th or the 21st century? recognize
Too little ...
Too little regulation of financial markets are the most obvious cause of all financial crisis since Friedman and his band started turning the world into a global casino. Realize.
what?
what?
Keynes was trying ...
Keynes was trying to use short term inflation to combat 'sticky wages' or the problem that union wages don't go down in an economic downturn. The problem with his theory is governments don't engage in short term stimulus but rather continue the stimulus permanently.
"government ...
"government intervention to secure full employment.", which is why we're in this mess at the moment because of government intervention to attempt to create jobs (and wouldn't they like full employment?) so they can give the illusion that an out of control bubble is in fact a stable economy. It always ends in disaster and this time it's going to be an even bigger disaster. Although the Soviet Union achieved full employment with state intervention I'm told, and that was an economic success?
Yes I never got ...
Yes I never got that Keynsianism was about running your economy into the ground, then printing loads of money in some stupid attempt to cover up the mess you've made of things. The stimulus was about short term boost from the government so that large parts of the population weren't driven into very real destitution and starvation. Libertarians never seem to address why the population doesn't jump on board with this economic paradise they're proposing. Could it be too idealistic?
And then inflation ...
And then inflation stroked mister
So what did end the ...
So what did end the Great Depression? Huge government spending cuts after the war did. From 1944 to 1948, the U.S. government cut spending by $72 billion—a 75 percent reduction. In 1945, the deficit was 21.5 percent of Gross Domestic Product (GDP). Two years later, the budget surplus was 1.7 percent of GDP. The dramatically spending cuts and slight tax reductions boosted economic growth. Between September 1945 and December 1948, the average unemployment rate was only 3.5 percent.
I'm a neo-liberal ...
I'm a neo-liberal so what?
Absolutly. This ...
Absolutly. This video is accurate but what they are describing is not actual Keynsianism. Keynes said that stimulus should be short term and deficits avoided. During good times governments should have surpluses to pay for deficit spending. It was later that WW2 was credited with ending the depression. Keyens denounced this use of his theory.
There are some ...
There are some ridiculous comments on this thread. Some contibutors are confusing ideology with economics - which, ironically, is exactly what Hayek did. One of the main tenets of Keynesian economics is government intervention to secure full employment. Keynes was not a socialist (as some on here have implied) he was a pragmatist. Private enterprise does not operate within a vacuum and there is no such thing as a 'free market' except in the machinations of neo-liberal ideologues.
Very good video
Very good video
we both know that. ...
we both know that. We're having an unrelated debate about the broader philosophies.
You are both ...
You are both entirely misguided - neither keynesians or neoclassicals are concerned with long term growth. This is an argument about business cycles and how to tackle them - Keynes argues that governments need to act counter-cyclically through fiscal policy in response to downturns. Monetarism achieves this by using monetary policy to prevent excessive booms and asset bubbles that create the crashes in the first place. Ironically politicians ignore both and use monetary policy in a bust.
Very good! But the ...
Very good! But the 1720's weren't much better than the 1620's, the 1620's not > the 1520's, the 1520's not > the 1420's. Have you figured out the pattern? Good! It's capitalism combined with Western rule of law and property rights! Not Keynes writing about how total war is good for the economy. Glad we could agree.
and the 1820s was ...
and the 1820s was much better than the 1720s, there could be some sort of pattern here, if only I could see it?
Seriously people, ...
Seriously people, neither one is conservative or liberal...those terms don't apply in economics the same way. For example, Nixon, Bush Jr, and Obama were Keynesian while Clinton and the modern Tea Party is pro-Hayek. Everything this video says is EXACTLY what the economists actually said....just set to awesome music. If you would read a book from time to time, you might actually understand something.