Comedy | February 09, 2010 | 8 comments

"Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem

source: http://www.youtube.com/watch?v=d0nERTFo-Sk

shanklinmike
Great Hayek VS Keynes Rap Video!
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8 comments // "Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem // Video

  • Alexander_Snitker
  • Mike_Beitler
    • 0
      Mike_Beitler  

    • Fun and educational, not two words I typically use about a rap video. I especially enjoyed seeing my buddy, Prof. Mike Munger, as the limo driver.

    • 2 years ago
  • CreditFigaro
    • 0
      CreditFigaro  

    • That's all interesting, but I believe that Keynesian economics actually requires that you control boom cycles by using contracting monetary policy (pull up interest rates) in order to control the boom so as to avoid a bust.

      What got us here in the first place was republicans trying to push back their economic failures onto the next administration by using expansionary policy in a boom and peak period to stave off a recession caused by terrible decision making.

      Keynesian economics doesn't encourage binge like booms, free market greed machines do.

      And no, war doesn't grow the economy, it distributes less wealth.... if you actually tax people for it, which we don't. War is never the economic answer, taxes on the rich and public infrastructure spending is.

    • 2 years ago
  • Guyatthebusstation
    • 0
      Guyatthebusstation  
    • CreditFigaro:

      CF, i think your a little turned around. (it could be me, its been a while) Using interest rates to control economic growth is closer to a monetarist views on the economy. Keyne's suggests to use fiscal policy to control economic growth. (obv. you have to use both but a heavier focus on how to manipulate it.)

      In the Keynsian cross IS/LM model a keynsian would suggest to us a fiscal policy to move the IS curve. A monetarist would suggest using the interest rate to move the LM curve.

      The big flaw i see in keynesian economics is the will power of politicians. The average buisness cycle is over 8 years. For keynesian econ to work the gov has to have the common sense to save when its good and spend when its bad. Like any ordinary household would do. Its just politically savory to spend when they are in office. They won't get re-elected is they don't.

      As far as the war comment. I agree. it only helps the econ if its a "cold" war. When you actually start dropping bombs it bleeds your resources.

    • 2 years ago
  • CreditFigaro
    • 0
      CreditFigaro  
    • Guyatthebusstation:

      Thanks for the correction. I think the check really needs to be the people. People can't be bitching that they lost their job or paid more taxes because the government did something that was just and good for the greater number of people. The solution is to enact laws that make it mutually agreeable to do the right amount of spending, like having DOD and VA spending as a line item on everyone's W-2

      On that premise the solution lies in laws that promote stability, responsibility in spending on the credit card, and less extreme boom and bust cycles.

      Did I mention keeping a low gini coefficient by raising top tax rates? We are on par with china with respect to our wealth distribution... that should tell you something.

      Thanks for the IS/LM graph, I didn't remember learning about that one.

    • 2 years ago
  • Dagum
    • +1
      Dagum  

    • That’s an interesting and informative rap. How does the school of Keynesian economics explain that war will end a recession and grow the economy?

    • 2 years ago
  • Guyatthebusstation
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