Keynes vs Hayek? Could you please explain this for a neophyte? How do ideologies influence economics? What should I know in order to understand economics without being pushed to one side or the other of the political spectrum?
Keynes vs Hayek? Could you please explain this for a neophyte? How do ideologies influence economics...
Evan Nelson
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Justin Reyes
Noah Lewis
Keynes: central planning money
Hayek: free market money
You're welcome.
Asher Harris
Keynesianism is a product of a failure to understand basic empiricism and consequent delusion that the economy can be "treated" like a sick patient using interventionist solutions.
Hayek is for people who actually understand rigorous empiricism and know that much of what the Keynesian school jacks itself off about is unknowable.
What most people hear:
>Keynesian: Well you see, by increasing fiscal expenditures we can increase aggregate demand.
What an educated person with IQ > 130 hears:
>Keynesian: Hurr, durr, I have never done a single rigorous experiment to show that my model of the world is anything other than complete gobbledygook, but I can fool all the uneducated rubes by using impressive-sounding jargon. Better keep it up lest I have to quit this comfy scam and actually have to work for a living.
Kevin Walker
Most think they are both right depending on time horizons. Though Keynesian economics has been used to piss away govt funds and set interest rates too low. (American under Trump)
Colton Young
Brody Butler
Nassim Taleb and I call these people "interventionistas"
Charles White
kek what the fuck does this bitch know about economics
Robert Collins
Intellectual debates are forbidden here. This place is for posting Link memes
Hudson Brown
Keynesians deserve the rope
Jonathan Ross
>>Keynesian: Well you see, by increasing fiscal expenditures we can increase aggregate demand.
seems pretty logical. if the government's expenditure (demand) increases, then aggregate demand (the sum of all demand) must increase as well
Dominic Gutierrez
Adam Nelson
Look up the he history of Bancor. Keynee wanted the banking industry to set up a Supra national bank that could set individual countries interest rates to so influence inports and exports.
How fucking Jewish is that?
Josiah Miller
Hayek is literally a meme. Unironically no one takes him seriously unless you mean the Ron Paul retards who want to abolish the Federal Reserve
Lucas Turner
>He thinks "seems pretty logical" is a proxy for truth.
Congratulations, you are an IQ 100 - 115 useful idiot enabler of parasites slightly more intelligent than you.
Thomas Williams
It's a meme ya dip
Xavier Reed
The following is a simplification.
Classical and 19th econ(Econ 101): Money is just a medium of exchange and doesn't affect the real economy too much. Prices can be adjusted instantly and people can save in real goods. Not much thought about interest rates.
Keynes: Nominal rigidities and indiviual irrationality drive the cycle. Nominal rigidities means debt and salaries are establish an fixed quantities of dollars, the problem is with inflation and deflation the real amounts of debts and salaries change, sometimes in ways that reduce activity a lot the produce more deflation. Thus government must print money to avoid deflation and directly do economic things on the side to compensate.
Hayek: The cycle is driven by interest rates being lower than people willingness to save would suggest due to government money printing(Keynes type included). When people receive more credit than they collectively save everyone is happy until short term productive capacity is not enough to give goods to people because money was employed on unprofitable and long term ventures.
Thus governments should stop messing with the interest rate and the market should set that rate.
Friedman(Monetarism): Keynes and Hayek are right. We should print money but we shouldn't inject it via credit markets. Just make bank accounts give free extra interest out of new money if there's deflation. Make it a fixed % or calculated with simple formulas so nobody can manipulate it. BTW, a cryptocurrency with fixed relative inflation would be cool to try(Monero has fixed absolute inflation).
Parker Young
Govs can only spend what they they from others
Andrew Rogers
that's irrelevant. it's still money that wouldn't otherwise be spent in the economy at that time, either because it's borrowed from abroad, or because it would be sitting in a bank/similar
William Wilson
Economics are a spook
Colton Green
Abroad money is fine in burgerland while the rest of the world keeps demanding dollars
But borrowing just reduces credit for the private part of the economy.
Ian Bennett
No it's incredibly relevant. Whether or not spending is actually productive is entirely dependent on the decision making behind said spending.
When you and millions of other individual actors decide how to spend your money rationally, the result is a unique, emergent allocation of capital that will improve the entire condition of the economy.
When a single entity, rather than millions of distributed entities, tries to solve the same problem of capital allocation, you get a much less efficient regime.
Owen Harris
kys leftypol retard
Jonathan Turner
>Rational Actors
OH NO NO NO NO user... NOOOO DONT FALL FOR THE RATIONAL TRAP.
Benjamin Scott
>Drawing the economy as a garbage can.
This comic is fucking stupid. As redistributing wealth can actually stimulate economic activity at least in the short term.
Kayden Roberts
>extrapolation and explanation of large data sets dont real
You sound like a fucking idiot
Ian Brown
Something being a spook doesn't mean it's not "real".
It just means that it's become so abstracted to be meaningless / not reflective of reality.
Economics is just that.
The idea of economics is a spook, economics itself is not.
Does that make sense?
Nathaniel Scott
Bumping for more interesting comments.
Pretty instructive, thanks!