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Keynes vs. Hayek

August 8, 2011

Ok, I’m not a big fan of rap music, but these videos are excellent introductions to what is happening in our global and national economies; it’s J.M. Keynes verses F.A. Hayek.

What? You’ve never heard of these individuals? Some of you know who John Maynard Keynes was, although I believe most of the general public is clueless (the last video dramatically demonstrates this fact). Yet, our economic system and the present crisis – really a multi-generational problem – is heavily predicated on the economic theories of Mr. Keynes. Ever since 1939 we’ve been playing the Keynesian game. Ironically, even if you have never heard of Keynes, your wallet is constantly impacted by his worldview. The first video presents the party-now and pay-later Keynesian mindset quite well.

The second individual, Friedrich August von Hayek, is Keynes’ historic counterweight – one too often left out of the debate. Although Hayek’s economic theory, known as Austrian School, has gained interest in the last ten years, it’s amazing how marginalized Hayek has been. I’ve read economic texts and historical surveys that dedicate chapters to Keynes, yet never mention Hayek once, or, when they do, only reference him as a side-note. I guess nobody likes a party-pooper.

So here we go; the first video presents the party-now Keynes model and the opposing worldview of Mr. Hayek. The second part takes this battle into the political arena, where we have the added perspective of the ongoing economic crisis.

Two other videos have also been included in this posting: A short introduction with Hayek/Keynes and the makers of the rap video at the Buttonwood Gathering, and an “interesting” (sad? disturbing? strange?) video interview regarding President Obama as being a “Keynesian.”

Enjoy (even if you’re not a rap fan). And if you don’t know who Keynes or Hayek were, their theories or the impact they’ve had, then do your homework!




One Comment leave one →
  1. Joni permalink
    August 8, 2011 12:10 pm

    I’m surprised that I had heard of Hayek long before I heard of Keynes. The video of the public is sadly not unexpected.

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