Keynes and Hayek Head to Head | Roger W. Garrison

[NicosMind]

The Paradox of thrift strikes me that it misses out that we have fractional reserve banking. If you dont have people saving then you dont have capital for business to use and invest. For every $100 the worker saves, business can lend $1000. If the worker spends $100 on that business all they have is $100 to invest.

Then if all you do is stimulate consumption you add no extra productive ability for the economy. If you stimulate production you let the economy grow.

[Illyrien]

@NicosMind

900$ of the dollars the is lent to business is nothing but paper, it does not represent actual resources.

[Malthus0]

@Illyrien ''is nothing but paper, it does not represent actual resources'' This makes you sound like a zeitgeister, yet a look at your channel shows that not to be the case so what is your point?

[Illyrien]

@Malthus0

I think I was confused about NicosMinds statement. I wanted to point out that if 100$ of resources is saved, only 100$ worth of resource really exist to be invested in further production capacity, regardless of of Fractional Reserve Banking. Economically I consider myself an Austrian

[Malthus0]

@Illyrien Ok, that makes more sense.

[RKAddict101]

This man makes the best powerpoints.

[rfecteau]

Any scientific theory that uses "animal spirits" as an input is a hilariously bad theory.

[rockandrock44]

I was under the impression that sticky wages and price stickiness in general was an insight of the New Keynesians such as Greg Mankiw, not of Keynes himself.

I'm referring to 16:55 .

[synestheticmonotony]

@rockandrock44 Actually, the concept of sticky wages has been around since Malthus, it is a pretty old concept in economics, it just hasn't always been called by the same name.

[Panpiper]

Animated graphs sure do make it a lot easier to understand heady concepts.

[SuperGuitarman69]

Thank you Mises Institute. Well done..