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From: EconStories
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  • Hayek's followers supported the deregulation of Wall Street which caused our financial crash. Delusional and dangerous people.

  • I would suggest placing annotations describing the characters and references to articles at certain lyrics. This would allow people who no not understand some references to become more educated on it.

  • Totally unrelated, but some of the instruments in this song remind me of the library music on Goldeneye 64.

    Ok, Hayek. You may continue beating the crap out of Keynes.

  • Hayek schooled that fool!....That's the best rhyme I have X_x

  • I'll say this as a New Keynesian MMT supporter. It is disappointing that people haven't read Hayek, and not just his economics but also his philosophy. But when you start calling Keynes (who slammed Marx and was quite the capitalist personally) a communist, and socialist (among many other colorful ideological labels), it does more to discredit Austrian economics than anything else

  • Government spending will always increase in a recession because people become unemployed so they then don't pay as much tax and claim unemployment benefits so for a government not to step to stimulate the economy will cost more in the long run. The best thing a government can do is spend less than they get in when the economy is booming. This would be difficult because of politics.

  • Thanks for the video

  • The trouble with enjoying this so much is the absence of someone to share it with. Econ stories rock!

  • Marx would've kicked both their asses :D

  • @Thorasus

    Nope.

  • The amount of government or it's percentage of the economy is irrelevant compared to what that spending is on. if the government builds a bridge, that is convenient, obviously the private sector could do it cheaper, and better, and would never build one where people didn't want one, but when that spending is on socialism, government subsidies, tax credits, creating monopolies. They are eating away at the economy and will not stop until they have a communist slave state.

  • This leads to the following definiton: 0 <̄ w <̄ 1,where

    w=K/(K+I),where K is the total relevant knowledge and I is the total relevant Ignorance. Like probability ,K+I equals 1,since it is normalized on the closed unit interval [0,1].I-w= I/(K+I)

    Keynes specifically links his GT concept of uncertainty to the TP’s weight of the evidence on p.148 and 240 of the GT. Hayek provide no such formal analysis of his concept uncertainty as being the dispersion of knowledge into bits of tiny pieces .

  • The meaning of the term “uncertainty” is extremely important in the debate between Keynes and Hayek concerning the operational capability of a capitalist economy to provide a macro-economic full employment level of employment for all available resources. Keynes gave a formal mathematical definition to the term weight ( uncertainty in his General Theory ),in his A Treatise on Probability 1921.

  • It is great. Lord Keynes should have a brittish accent though. It would sound better.

  • @SnackBoySnake The word is Austerity.

    It basically means you have to cut back on things that you normally have.

    In the sense he is using, he is talking about how their was rationing. The government limited how much gas, meat, butter and various other things that you could buy because it was all being shipped overseas for the war efforts.

    Also the prices on metal, rubber and a lot of other materials went up because they were being used up by the military.

    It was a very low quality life du

  • 4:41 The stenographer is so turned on by Keynes' spending plan.

  • I've prob seen this 20 times, still amazing. 5:24 is the best! Russ, you are a champion.

  • that one guy with the beard looks like bernanke lol.

  • I listen to this while reading Ludwig von Mises "Money and Inflation" lectures.

  • I get the impression EconStories gives undue weight to Hayek's arguments (he ALWAYS gets the last word), but maybe I'm just too Keynesian. For example, Hayek's insinuation of letting failed banks/institutions die should be refuted. There's no bigger market impact than the majority of the US auto companies failing, other than a total bank failure: both of which classical economists essentially advocated. I understand Hayek would say "you caused bank fail in the first place," but IMO that's BS.

  • @thesupremevidwatcher It's not BS since the political system (nominally keynesian) gives banks perverse incentives by bailing them out. In essence, banks will act recklessly when it is tacitly known that the losses will be socialised (I.e. a bailout).

  • @thesupremevidwatcher ''Hayek's insinuation of letting failed banks/institutions die should be refuted'' So you don't worry about moral hazard, misallocation of resources, & saving firms whose have a failed management & work culture? Capitalism is a system of creative destruction. & destruction is the yin to the yang of creation. Better to get the destruction over with quickly so the new can sprout, then let politics spread it over time corrupting everything it touches.

  • @Malthus0 True there is the issue of moral hazard, but most of these institutions are too interwoven in to our daily lives and are too crucial to fail. While creative destruction is the nature of things, the failure of these firms will have a huge chain effect, mass unemployment, liquidity flight etc.

  • @rekcufeht Well then if that is the case I will put it another way. Being so interwoven into our lives then they are also too crucial NOT to fail. Anyway it is not like the resources go away with bankruptcy, they are often just given new owners who reorganise them & will continue to the extent that profitability still exists in maintaining supply chains. The remainder going to higher valued parts of the economy increasing jobs overall.

  • @rekcufeht However, the more we try to insulate these things from failure, the more we just end up creating a giant bubble, which will eventually still pop.

  • I'm looking for a word that Friedrich August Hayek mentions in this video. 03:20

    A life of .......

    Can someone spell out the word, please?

  • @SackBoySnake A life of austerity? :)

  • Malthussss!!

  • hahahaha brilliant

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  • economics isnt something you can master with a course in college to think otherwise is the pretence of knowlage. The most important statement in the clip

  • @MrDratz Agreed... "to think otherwise is the pretense of knowledge". This is the fatal conceit that Hayek warned us about.

  • The comments is such a mess, not going to read.

  • Yes, Hayek, the same chap who collaborated with Pinochet, the junta warlord of Chile whose insurrection killed thousands in the name of 'anti-Communism'.  Real classy, kids, truly makes the heart warm...

  • @stew3128561 Pinochet, who saw a red carpet rolled out to the KGB to act as a staging ground for revolutions throughout South America and could not with clear conscience let it happen. The KGB, unwilling to give up their strategic goals to start wars sent assassins and terrorists to terrorize the nation. Pinochet excessively retaliated and his noble goals lead to tyranny but ultimately a prosperous and democratic nation emerged from his policies. Cold War politics are a bitch.

  • @TullyRiven If you seriously believe that drivel, just stop. Christopher Hitchens wrote an extensive treatise on the fact Allende was deposed and murdered illegally by Henry Kissinger, there is a documentary film on this. You sound like a blithering lunatic trying to maintain this position and you spit on the graves of thousands of innocents murdered.

  • @stew3128561 It is true that Allende was deposed and there certainly was CIA involvement in it. I also stated that there was excessive retaliation so am by no means a Pinochet apologist. However, Red Insurgents being funded and supported by the KGB were looking to kill innocents and overthrough the government of neighboring nations and turned their terrorist actions on Pinochet after their enabler was no longer in charge. People died during the Cold War. Don't be such a pansy.

  • @stew3128561 Fact of the matter is that Che and other rebel groups were being provided training and weapons by the KGB and Allende was allowing them to stage in Chile. Their goal was to overthrow the governments of Argentina, Bolivia, Peru and others. What do you think would have happened to their Presidents if it succeeded? Would that have been legal? Do you condemn those rebels goals or are you actually sympathetic to the cause of revolution when its goal is to establish KGB puppet states?

  • @TullyRiven Argentina, Bolivia, Peru and others have a well-documented record as serving as the final stop on the 'Rat-Line' for escaping SS Officers, such as Eichmann, who was captured in Argentina by Israel. The Peron-era Fascists parties of this era are guilty of murdering their own people for trying to end slave labor conditions in US-controlled mines and industries, such as coffee and bananas. Sticking up for those who shelter the SS makes you sound like an even bigger loony.

  • @stew3128561 Typical leftist driven to change the subject using a straw man to create guilt by an association that is not relevant to the topic. Allende and the KGB were not seeking to extradite war criminals; they were seeking Marxist Revolutions and hiring murderous thugs like Che to terrorize innocents. Hitchens praised Trotsky who presided over mass murders and purges. Hitchens supported tyranny and murder if it served Marxist goals.

  • @stew3128561 Huh? What history book have you been reading? Hayek never "collaborated" with Pinochet. The economists who advised him were all from the Chicago School. He did predict that Chile would become a democracy and claimed that everyone he met in Chile loved Pinochet. Would you be so harsh on such noted Stalinists as Paul Robeson and W.E.B. DuBois?

  • @TigerofRobare Grow up, the Pinochet junta was installed by Henry Kissinger. As for African-American Stalinists, they were being lied to, while everyone knew that an anti-Communist generalisimo akin to Franco was anything but democracy in action.

  • @stew3128561 ''collaborated'' When? The best I know hayek just approved of his government vs the alternative how is that ''collaborating''? In any case Hayek was right. Everything he said about how it would turn out occurred. I would call that vindication.

  • @Malthus0 Vindication for a military junta dictatorship that the International Community condemned as vile and dangerous? Are you thick or just dumb? Seriously, you spit on the mass graves of Chileans with this stupidity. As for the KGB funding revolutionary group, don't forget to include Nelson Mandela's ANC in that group, the USSR helped end apartheid by giving the Mandelas support. A truly Stalinist terror, indeed.

  • @stew3128561 ''Vindication for a military junta'' No stupid. vindication for Hayek's prediction that Chile would return to democracy free from economic collapse & political crazy. You fail the economic thinking test with your moralistic bullshit. Take the seen vs the unseen, & the choice between available alternatives. You are just butt-hurt because Allande was not allowed to finish his Marxist social experimentation.

  • I must be a huge econ dork because I can't get enough of seeing hayek knock keynes on his ass

  • @sstearns34 lol I watch this most days

  • @sstearns34 Oh good I thought it was just me.

  • @sstearns34 i hear that

  • Bring on Round 3!

  • When the guard asked for Hayek's I.D., he should have gently waved his hand and said "You don't need to see my identification." "Move along, move along..."

  • Real growth means production of what people demand. That's entrepreneurship, not your central plan.

  • Just found this, wow , it's better than the first one

  • @sstearns34 yeah i agree but it's harder to learn because they go back and forth so much rather than keynes rapping for half and then hayek takes the rest. but other than that i agree; this video has much more content and references a lot more awesome people :D

  • Hayek, Friedman, Ron Paul.

  • Hayek is awesome

  • @Humblifier Friedman was not on Hayek's level. Ron Paul is just a politician. Get over it.

  • @OrderoftheWhiteHand Get over what? You mad bro? Friedman was definitely side by side with Hayek and Sowell, and Ron Paul is the leader of a movement, not "just a politician."

  • @Humblifier And Governor Gary Johnson - the only one of that group that will be on all 50 states' ballots.

  • Hayek destroyed the world. Only Keynes can help the world. Norway is very left-wing country. This country is the richest country in the world.

  • @standa215 And you don't think oil wealth has anything to do with that?

  • @standa215 I doubt Norway is richer then the state of Texas.

  • @cheeseburger12 The typical ignorant American .... son go and look at GDP per capita, HDI and living standards in Norway before comparing it to the Redneck junkyard of yours ... Norway isn't not drowning in debt and does not have massive unemployment...oh and Norwegians live a healthier and a happier life free of stress and struggle unlike you blokes ... Throw away your pride for a moment and look at things in a less ignorant manner.

  • @anilakbar1 You are a typical bigoted European snob looking down your nose at your supposed inferiors as your EU continues in a Keynesian Death Spiral. Using per capita numbers related to a nation that is mostly wilderness is amusing. Their keeping their Krone rather than giving up their sovereignty to Brussels is even funnier. I’m happy for the Norwegians and wish them the best of luck.

  • @anilakbar1 There are not drowning in debt because of the amount of oil they have per capita (like Alaska) and they don;t have the environmental weenies that keep trying to stop them from drilling for oil. Take that oil away, like the environmentalists keep try trying to ban off-shore drilling/Keystone pipeline) and Norway would be a joke.

  • @standa215 Also, they wouldn't be worth spit if they had our anti-oil environmentalists.

  • @standa215 Richest in what terms? I assume in GDP per capita? Care to elaborate?

  • @standa215 Norway has a tiny population & lots of oil & Gas. Do the maths. And personally as a somone who has norwegian blood & who has visited many times I would rather not live there. Spirts & wine are only sold in a big state store in town, tax's are stupidly high, prices of food & other necessities & general cost of living is also high. Not exactly utopia.

  • @Malthus0 True.

  • @standa215 And how about our $15 trillion dollar debt? that's not so great, and it was racked up due to keynesian economics XP T-T

  • Today Keynes helped USA again. Hayek destoyed EU.

  • @standa215 Yeah, because the EU is all about free markets.

  • We're all Austrians now.

  • wait so full employment, wartime gdp increase, deficit spending, government regulations..these are keynesian economic solutions?

    my head hurts :(

    lol keynes just wins by default

  • lol they have the TSA agent

  • We are all... AUSTRIANS NOW!

  • Which way should we choose? More bottom-up or more top-down? The fight continues. Keynes and Hayek: Second Round. It's time to weigh in. More from the top or from the ground? Let's listen to the greats! Keynes and Hayek throwing down.

    Most epic chorus ever

  • Hayek is a genius

  • Austrian economics is a way better model. Lets spend ourselves into more debt with Keynians garbage while people get poorer and the corporations benefit. Hayek all the way!!!!!!

  • HAYYYYAAAAAAOOOOKKKK TEAM! XD!!!!!!!!!!!!!

  • 231 people are Keynesians

  • @MrEconomics101 umm dude yeah umm keyens won

  • @cyb3rwolf51 actually they both won new followers, but keynes got the vote of the chairman because that is what we use for modern macro.

  • Can we get this in dubstep?

  • I have found my calling...my two passions...Hip Hop and Economics!!

  • @kkendall95 or....

    Economics and hip hop!

  • @likemikey93 I am also an Econ major, and so I know the statement you just made is so wrong I actually cringed when I read it. Keynes believed monetary policy was an ineffective way to stimulate the economy and Hayek believed going off the gold standard in order to allow monetary policy more power was an error. And yes this is 100% a fight between socialism and capitalism. Clearly you never read The Road to Serfdom (it's the book that made Hayek famous). Which explains why the more government i

  • I love how obvious Bernanke keeps popping up in the video.

  • @fallacyz3r0

    He is played by the producer's dad.

  • I think that Keynes did a bunch of goofy stuff and that made him awesome.

  • Malthus with Keynes? WTF!!??

  • COOKIES!!!!!!!!!!!!

  • the battle between Keynes and Hayek is not one of "socialism" vs. "capitalism". It is a fight between problems of economic equilibrium and those of money supply. Any economics major like me could tell you that.

  • @likemikey93 Spoken like a true economic major

  • why did the wrong side win? This video mustve been made by a liberal

  • @MurakumoElite

    Haha which one did you think was liberal?

  • @MurakumoElite They were implying that, although Hayek was clearly right, everyone refuses to listen and chooses to go with Keynes.

  • @JayMM117 That wasn't it at all. Although Hayek offers more economic liberty, Keynes offers economic security.

    Keynesian economics was the mainstay economic theory from the 1940s-1970s, and overall has been proven to be more successful. Austrian/Neoliberalism creates bubbles and leads to devastating recessions and depressions.

  • @SereneSatellites Well, I don't really want to argue the point on YouTube, but I disagree. Anyway, I wasn't even making a claim about the validity of Austrian economics. I was just replying to MurakumoElite's question of why Keynes' hand was raised when Hayek won the boxing match. I was just pointing out the point that the makers of the video were making, not giving my opinion.

  • @SereneSatellites The economies of the west were run on the Keynes model since the end of world war II. I see nothing secure about the world economy. Centralised stimulation causes bubbles which are doomed to bust. Keynes model means loans are too cheap, too much money borrowed, more money printed, loss of value, inflation.

    Hayek's non-intervention whould lead to cheap money only when people were saving and higher interest on loans when savings are low. This would be predicable

  • @SereneSatellites do you think it was austrian theory that caused the housing bubble? i know i'm askling about an individual event of many bubbles in history, just wanted to hear your take.

  • @rajohns08 The housing bubble and the 2008 economic crisis was the product of the Deregulation and Monetary Control Act of 1980. It abolished regulations that had been in place since FDR, as well as empowering the Federal Reserve.

  • @SereneSatellites The DIRMCA and CRA are both Carter / Democrat driven initiatives and both certainly played a part in the housing meltdown. The former ironically gave more power and control of the Fed to regulate banks while the latter empowered activists to extort banks into giving bad loans as part of doing business. They both inflated the housing market through central planning based on ideological and political goals that couldn’t be sustained by the market.

  • @TullyRiven You live in your own little world.

  • @SereneSatellites Wow, with such a clever and informative counter to my statement what can I say? LOL

  • @MurakumoElite Both sides won, the media went to Keynes and the people went to Hayek

  • Keynes ftw

  • I don't want to do nothing there's plenty to do...

    Doesn't really answer the question does it?

    Also this video gives a very simple view of Keynesian economics which is annoying since it isn't a model of simple 'money injection' that this video implies.

  • @popemister Actually it is that simple.

  • @MurakumoElite If you know anything about Keynes you will know it's not that simple.

  • Hayke for the win!

  • Both are right about certain things, but neither are totally correct

  • These two are like Slytherin and Gryffindor.

  • @PrivateAckbar Actually the colors of libertarianism would be black and yellow, same colors as hufflepuff.

  • @TheStrangerInTheRye No I meant that they were friends who represented opposites.

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  • @Smokey13900 ''Heck even Hayek admitted that Keynes is a smart economist'' No Hayek said he was a genius but NOT a good economist.

  • Just brilliant!

  • Best Epic Rap Battles of History episode ever.

  • @Jepserson This aint Epic Rap Battles of History :)

  • No one should pay attention to g4macdad. It's already been decided long ago he is an offspring of fiat money, i.e. a bioLOGICal error ;)

  • Keynes sounds like Eminem!!

  • Keynes>Hayek

  • @six2five3 Keynes BS has never been proven, still it's followed everywhere.

  • @imtonasty wonder why its followed then? and do you know what has been proven? free markets fail

  • @six2five3 its followed because a majority believes in it, not because it's been proven. like religion. And it's good for government because it allows them to expand and get more power.

  • Everyone please read Hayek's "The Road to Serfdom" and Hazlitt's "Economics in One Lesson" if the content of this video interests you.

  • I'm just so fucking proud of Hayek.

  • Steve Keen is the only economist to model the economy mathematically.

  • g4macdad, I watch this video like once a month, and you're always in the top of the comment section. Go the fuck away you nut job.

  • RON PAUL, RON PAUL, RON PAUL KNOK THAT MF Up

  • THE ECONOMY'S US, WE DON'T NEED A MECHANIC, PUT AWAY THE WRENCHES THE ECONOMY'S ORGANIC!!!!!!!!!

  • @locheffieri He went 8 Mile on him with that.

  • @swipelingo I ain't Eminem. But nonetheless Its true though, the politically left would like nothing better then to take control of the "poor" "middle" and "rich" class's the fact of the matter is; they're socialists. Why else do they implement laws that would seek to restrict the free markets; and, according to the Constitution, the free people (the healthcare bill, their monopoly on schooling, cash for clunkers, Solendra [now that WAS a bust], defining wealthy as 250K etc-)!?!

  • all the people that approach Hayek after the debate are young and all the people that approach Keynes are older.

    Is that suppose to be symbolic of the youths appeals to Ron Pauls economic message?

  • @JayhawkBenja I hope so :)

  • The actor playing Hayek is so physically talented. What he does with his face in the beginning makes him look like an old Disney cartoon.

  • Like an internal massage.

  • This song is awesome! :D

  • We are all Austrians now!!

  • @DezimatorGPC Thanks to Californians

  • @DezimatorGPC the problem is that many people stand for any of the sides without even slightest knowledge or awareness :) do you really believe people would agree e.g. lowering their wages? it's not about "setting markets free" it's about sth much much more difficult, "thinking", and people seem not to like it at all :/ people are ignorants, e.g. they won't admit living in totalitarian systems such as democracy :/ they take fascism for nazism and so on :/ really sad :/

  • i studied austrian economics now i can't be converted.  :(

  • @piecharthosen good

  • I just want to say I love this.

    Good day.

  • i like it

  • Can't... stop... listening to it! I've found modern parodies of rap music are legitimately well made! Better than all that stupid shit the pop culture is shoving these days.

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  • I see the debate as this. One side wants unlimited greed, regardless of the amount of suffering. The other wants to limit greed and suffering.

    Socialists vs, Sociopaths.

  • @g4macdad I see the debate in this. One side wants unlimited power without concern about property rights, work ethics or skill. They want to steal everything from one group so it can be mismanaged by the State.

    Sociolists.

  • @TullyRiven

    Power for what? Greed?

    You make NO sense.

  • @TullyRiven

    You see the debate exactly like the sheep that Koch Industries intended.

    You are a RETARD!

  • @g4macdad Koch is far from a Hayek fan.

  • @jimbo525SE

    He made this video, "Genius".

  • @g4macdad Actually I see from all of your other posts that you are a troll. You may disregard.

  • @jimbo525SE

    Even if you are too stupid to make the connection between Koch Industries, Mercatus and this video, you CANNOT deny the Koch of THIS;

    cato. org/pubs/policy_report/pr-nd-g­d. html

  • @g4macdad In a truly free market, the rich can only get richer by making their capital publically available. So true capitalism raises everyone up.

  • Hayek served the throne that Americans CRUSHED. He was simply looking for a way to make Monarchy appealing again.

    Only a total RETARD would actually BUY IT.

  • @TullyRiven

    The reason I don't need to criticize Keynes also, is because this Koch Industries propaganda video is not advocating for him.

    Hayek was a fraud. He was a right-wing propagandist, charading as an "economist".

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  • @astreocclu

    Hayek and Friedman BOTH supported the MURDEROUS dictator; Pinochet, revealing their TRUE brand of "freedom".