Keynes vs Hayek

[NoStateofMind]

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

Haven't seen this before. They battle for economic supremacy!

 

[sMiLeYz]

lol i feel so nerdy for watching this

 

[HomerJS]

I was about to watch cause I thought you meant this Hayek...

 

[charrison]

http://www.youtube.com/watch?v=GTQnarzmTOc&feature=player_embedded

round two!

 

[ProfJohn]

That is really good stuff. Easy to understand by very important information.

Keynes made sense for decades, but his role seems to be coming to an end. It is possible that government spending has become such a huge part of the economy that stimulus is no longer as effective as it was 20 years ago.

 

[mrkun]

It is possible that government spending has become such a huge part of the economy that stimulus is no longer as effective as it was 20 years ago.

GDP = Consumption + Investment + Government Spending + Net Exports

Your argument only makes sense if you're claiming that somehow the government expenditures multiplier decreases as G/GDP increases.

Edit: FYI, G/GDP is about 6-7% higher than it was 20 years ago.

 

[MotF Bane]

I was about to watch cause I thought you meant this Hayek...

-snip-

They have my vote!