Keynes vs Hayek FIGHT!

[rowyn]

This is an awesome video: Keynes and Hayek (two of the greatest minds in economics from the 20th century) in a rap performance about their competing economic models. No, really, it's better than it sounds. OK, so I'm an economics nerd but STILL. It's also surprisingly informative, serving as a good introduction to both philosophies, and pretty well-balanced. Give it a listen. :)

Watch on YouTube

(h/t level_head, who pointed it out in this post).

Comments

[terrycloth.livejournal.com]

I saw these earlier... I thought it was kind of lame that they make Hayek out as the clear winner when the actual words of their own damn song don't support that, since he's got nothing but handwavey generalizations. Maybe his actual theories are better.

The problem with Keynes in practice is that no one actually implements the 'slow down the boom' half, so you get people using him as cover for 'borrow and spend indefinately'. There's no arguing that his methods work dramatically, though, and it's obvious why collective action is what you need when an individual would just get trampled by the crowd for trying to act alone. It's the same *concept* as the tragedy of the commons -- that's why you need a government.

Of course, you need a government that's willing to actually govern and not just play to the next election cycle.

[rowyn]

I hadn't felt like there was a clear winner in the video -- it seemed more like "Hayek got in a good punch, Keynes was pronounced the winner, and neither side is conclusive".

I kinda feel like reality is more a matter of 'right action at the right time' then that X or Y philosophy is clearly right. Even Keynes obviously valued free markets, although he also saw value to government intervention in them.

I should read more of their original material, though. Some of Keynes's stuff is probably free on Google Books ...

[terrycloth.livejournal.com]

Well, yeah. Neither of them is talking about a command economy or anything like that. Keynes as I learned about it in college wasn't even really about the government, it was just that Keynesian economics (which tried to explain markets in general) left a way for the government to intervene -- if you do X, then people will be encouraged to do Y.

Maybe he later went on to say that the government *should* in fact do X?

[rowyn]

I am sure his theories have been badly abused since his death. :/

[elusivetiger.livejournal.com]

I heartily recommend The Mises Institute at http://mises.org/ for a metric ton of relevant literature on the Austrian school, most free, both modern and historical.

Keynes himself was a big admirer of Hayek's, but Keynes gives government an excuse to meddle and tinker, consolidating power and an excuse for authority, while the Austrians don't.