Fight of the Century: Keynes vs. Hayek Round Two
Paul and I have several videos here at PreciousMetalsInvesting.org we discuss some of the governmental policies that warp market performance, actually hinder prosperity and cause greater problems for future generations. This economic information is brilliantly delivered in a completely different way. Take a listen to this video. For those not completely up on the economic theories and giants of the past and present like John Maynard Keynes and F.A Hayek you can click on each of their names here for a more complete explanation of the careers of these two economists.
In 1999, Time magazine included John Maynard Keynes in their list of the 100 most important and influential people of the 20th century, commenting that; “His radical idea that governments should spend money they don’t have may have saved capitalism”. But many can now see that advice has lead to the crushing deficit load that is plaguing us now. Keynesian economics basically holds that government spending and policies can lead to prosperity. As pointed out here in this video the government regulations, which are often given as a justification for big government are mostly a sham and in the words of the video “Oversight? The government’s long been in bed With those Wall Street execs” If government regulations protects the people why didn’t lessons learned from the Savings and Loan bailout lead to government regulations that would have prevented the financial derivative abuses and real estate abuse that lead to the current crisis? Why do the people have to spend billions of tax dollars to bail out the financial institutions who caused the crisis and caused such pain? As Keynes remarks to Hayek after the hilarious opening security sequence “I see you took a detour on the road down to serfdom.”
F.A Hayek is from the Austrian School of Economics whose ideas are more thoroughly explored at the Mises Institute F.A Hayek won the Nobel prize for Economics in 1974 and is best known for his defense of the free market system and belief that people can determine what is best for themselves rather than being dictated to by government. Although he is less well known his theories are seeing a renaissance as the problems caused by Keynesian Economics continue to plague governments throughout the world. Ron Paul is one of those recent supporters of this school of economic thought.