For the Second Time in my Life, I was Saved by Hip-Hop
From the "I-want-to-steer-markets; I-want-them-set-free" Department
I learned more about Keynesian Economics and Laissez-faire Economics in this faux-Hip-Hop video than I learned in College. (Seriously)
Hattip to Cisco
Personally, I’m not a fan of Keynesian Economics. The Libertarian in me likes Friedrich von Hayek’s theories.
But you know what? I can see an argument for, and against, both theories.
For more, see The Modernist: On Economics
John Keynes’ theory (I refuse to use his middle name when referring to him) works okay when there’s a fiat money standard and lots of credit available, if you’re willing to accept the ups and downs of the cycle. If either the credit or the fiat money isn’t there, things break down (or crack-up-boom, as an Austrian might say). Hayek’s theory works when people aren’t willing to substitute credit for money, which is an unfortunately rare occurrence, but it is more stable in the short and long run.
Comment by The former roomate still known as Matthew Maynard — February 3, 2010 @ 12:58:28 PM
Growth is the enemy of stability, no?
Comment by Cisco — February 3, 2010 @ 6:41:55 PM
Strictly speaking, growth is not stability, if you define stability as constancy, lacking change. If you define stability as proceeding with a predictable nature, then growth is stable, but so is contraction, as long as they both proceed at a predictable rate. But I’ve never seen an economy grow or shrink at a predictable rate. Or more precisely, I’ve not seen a Keynesian predict the growth/contraction rate with any degree of accuracy.
Austrians, on the other hand…
Comment by The former roomate still known as Matthew Maynard — February 3, 2010 @ 7:05:36 PM
I should also state, in defense of the first paragraph of this article, that I didn’t take a single Economics course in College.
Comment by Jeremy — February 3, 2010 @ 9:44:56 PM
Hey, I took two econ classes and learned more watching the video than going to class!
Comment by The former roomate still known as Matthew Maynard — February 4, 2010 @ 10:00:34 AM
Me too! Of course I had to take the same econ class twice. Does that count?
Comment by Cisco — February 4, 2010 @ 7:08:38 PM