Fight of the Century: Keynes vs. Hayek Round Two

"Fight of the Century" is the new economics hip-hop music video by John Papola and Russ Roberts at http://EconStories.tv.

According to the National Bureau of Economic Research, the Great Recession ended almost two years ago, in the summer of 2009. Yet we're all uneasy. Job growth has been disappointing. The recovery seems fragile. Where should we head from here? Is that question even meaningful? Can the government steer the economy or have past attempts helped create the mess we're still in?

In "Fight of the Century", Keynes and Hayek weigh in on these central questions. Do we need more government spending or less? What's the evidence that government spending promotes prosperity in troubled times? Can war or natural disasters paradoxically be good for an economy in a slump? Should more spending come from the top down or from the bottom up? What are the ultimate sources of prosperity?

Keynes and Hayek never agreed on the answers to these questions and they still don't. Let's listen to the greats. See Keynes and Hayek throwing down in "Fight of the Century"!

Starring Billy and Adam from http://www.billyandadam.com

Visit http://www.econstories.tv for the full lyrics.

Category:

News & Politics

Tags:

• John Maynard Keynes
• F. A. Hayek
• Keynesianism
• Austrian Economics
• Ben Bernanke
• The Federal Reserve
• Government Spending
• Debt
• Deficits
• The Great Depression
• World War II
• WWII
• Stimulus
• The Broken Window Fallacy
• Say's Law
• Rap
• Hip-Hop

[DezimatorGPC]

We are all Austrians now!!

[locheffieri]

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

[kingwilliam14]

lol they have the TSA agent

[TullyRiven]

@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.

[SereneSatellites]

@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.

[rajohns08]

@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.

[mindinsolitude]

@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

[Xylogeist]

We are all... AUSTRIANS NOW!

[kingwilliam14]

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

[kingwilliam14]

@kkendall95 or....

Economics and hip hop!

[kingwilliam14]

Hayek is a genius

[JayMM117]

@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.