Flawed Keynesian economics and stimulus explained in under 30 seconds

Here is a quick lesson on Keynesian economics. The proven alternative to keynesianism is the Austrian school of economics.

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[slickbtk]

he forgot to mention all the water that spilled out of the bucket as the keynesians walk on the pool deck from the deep end to the shallow end

[jezza1789]

Keynes are really stupid. If it didnt work with Bush lets have another stimulus even bigger, thats not working so will have a trillion dollar stimulus next. Welcome hype inflation.

[SuperNache]

The keynsians are the ones who've built the problem we are in. because consumption is all important to them, they have manipulated the interest rates via the fed causing consumers to overspend and businesses to overinvest. The bailouts and QE only perpetuated this leading towards a double dip recession which was amplified by the credit downgrade

[johammbass]

@durhamdf

Retard, the US economy grew despite the Keynesian economics not because of it. It grew due to automation, semiconductors etc

[durhamdf]

@Harshjones right...except after the industrial revolution we were one of the largest economies (and that WASN'T really Austrian Economics being practiced! Just not Keynesian) since Keynesians took over, we have become the undisputed economic hegemon in the world! There is nothing socialist about Keynesian economics, for the millionth time, there are conservative keynesians and liberal ones. And it was Keynsians that built our middle class over the better part of the last century

[durhamdf]

@Harshjones hahah right, we went from a fairly wealthy nation in the industrial revolution (Sorta Austrian, not really) to the undisputed economic hegemon with one of the highest standards of living and one of the wealthiest middle classes in the world (keynes). Keynesians are certainly not plannig anything, there is nothing socialist about it. There are conservative keynesians and liberal keynesians it isn't a political ideology.

[Harshjones]

@durhamdf

oh my god. How about the industrial revolution ? When the US had a gold standard ?The US has turned from the wealthiest creditor nation(Austrian era) in the world to the biggest debtor nation in history(Keynes era).DEBT=POOR. Austrian economics is put into practice every day. Austrian economics is the market, it is not a socialist central planning scheme like keynes. The market functions every day despite this flawed socialist central planning distortion called Keynes.

[durhamdf]

@Harshjones lol it is easy to be an Austrian Economist because YOUR ECONOMIC PHILOSOPHIES HAVE NEVER REALLY BEEN PUT INTO PRACTICE. You can just sit there and blame every single market shock on the Keynesian Economic system that is in place. There is a reason that AE is not accepted in academia, and has never been used by any central bank of any modern economies. Keynesian Economics has done a pretty good job of turning us into the largest economy in the world over the past 70 years I'd say!

[Harshjones]

@durhamdf

artificial booms are the problem. Every single artificial boom and its negative effects since Paul Volker left office have been caused by none other then keynesian policies

[durhamdf]

@Harshjones You obviously don't understand Keynsian economics very well if you think that lowering interest rates after a decade of unsustainable growth and inflation were "keynesian styled" policies. The recession caused by the tech bubble didn't ballance out a decade of unsustainable growth we called the "goldilocks economy". Clinton had us one right path to start paying down the debt and taking pressure off the system which would have put us in a much better place to deal with a market crash!

[Harshjones]

@durhamdf It was Alan Greenspan and vice chair Ben bernanke that bailed out LTCM keynesain style and lowered rates keynesian style. That is what blew up the tech and housing bubbles. Who the hell are you to say that they should have done the exact opposite when they did it DURING A RECESSION ! Isn't that Keynes claim to fame ? expansion during recession ?

Odd that you first blame it on regulation

[durhamdf]

@Harshjones (contd)...Bush fucked our country over, by enacting expansionary fiscal and monetary policy when he should have been doing the EXACT OPPOSITE! That is what fucked up our country, dumb conservative retards and their trickle down economic theory which any keynesian economist will tell you is fucking retarded because the rich have a larger MPS and therefore a smaller multiplier effect.