Keynesianism vs Austrian Economics. Keynesianism Explained (1/2) www.SuccessCouncil.com ep#13

http://www.successcouncil.com/sc/grea...

Today we are going to look at the basic differences between Austrian Economics and Keynesian Economics. We will split this episode into 2 short parts.
Lets start with Keynesianism.
Whether you know it or not, you are probably already very familiar with this philosophy. Over the last 50 years, it has become the basis for all Western economies.
Walk into any economics classroom anywhere in the world and you will probably find a Keynesian teaching it. Most Academics, politicians, and journalists today are Keynesians.
The easiest way to spot a Keynesian? Their "god" is "spending". Everything they say and think revolves around keeping people spending, and getting people to spend more.  And if they won't spend, take it off of them and spend it for them.
The way to stimulate the economy is to spend. In fact, suggesting anything else is laughable, like suggesting to any religious person that there might be another god.
{Insert Video 1}
And the bigger the problem, the more you should spend. And like any religious leader, when worshipping their god has negative consequences, you blame the people for not worshipping their god enough. 
{Insert Video 2}
Now for believers in Austrian economics, their "god" is "productivity". Everything they say and think revolves around being more productive. They say the only way to stimulate the economy is to produce more with what you have.
Now everybody knows that bureaucracy kills productivity. Even Keynesians know that. But their god is spending. And governments are great at spending. Keynesians' solutions are always government spending more money in as many places as possible. The Austrian Economists are the opposite. Just kill the bureaucracy and end the government intervention. Productivity will immediately improve and the economy will get stronger.

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[mmcakes100]

This is a ridiculous circle jerk for Austrian economics. This analysis is elementary at best.

[successcouncil]

I wasn't handing out diplomas at the end of the video. It was designed to be elementary.

[wtong89]

Your video is very bias. Its very common to get short-run and long-run mixed up.

If you are going to make an informative video, you should be unbias and attack both theories.

[successcouncil]

That is like saying if you are going to define justice and injustice, you should attack both.

[Eli W]

keynesian theory: dumb as hell, austrian theory: only whats logical

[thesaintofelsewhere]

You mean Bernanke's red faced screaming to print more money at the expense of the middle and lower classes isn't typical?

[elysium735]

I kame.

[mmcakes100]

There is plenty of evidence against Austrian austerity measures being used during a recession or depression (Europe right now) and there is plenty of evidence in support of Keynesian spending during a recession or depression (U.S. 1930's). To say that politicians support Keynesian principles because of lobbying is absurd. The exact same argument could be made about Austrian believing politicians who let monopolies run wild and are in favor of a corporate oligarchy in this country.

[Carl Sagan]

the reason i have a problem and alot of people have one with keynse philosophy is becasue it involved politicians and lobbying for votes. romney gets billions and obama uses welfare gov spending to lobby votes. im writting this before the video but econ is not for poloticians to take care of, the economy is self regulating with some help from the fed reserve

[mmcakes100]

It still doesn't fairly represent Keynesians. It's just biased garbage. I'll look elsewhere for a fair comparison.