Debate: Government Spending Can Play an Important Role in Boosting Economic Growth

The great debate between Keynesians and Austrians enters the digital age with the Mises Academy's first ever online formal debate, between economists Karl Smith (Assistant Professor of Public Economics and Government at the University of North Carolina at Chapel Hill) and Robert P. Murphy (Adjunct Scholar at the Ludwig von Mises Institute).

Visit the Mises Academy online at academy.mises.org

Category:

News & Politics

Tags:

• Keynesian
• Austrian
• Economics
• Government
• Spending
• Boost
• Economy
• Debate
• Mises
• Academy
• Ludwig
• von
• Institute
• Karl
• Smith
• Robert
• Bob
• Murphy
• Public

[vindician]

@Ujamesl978 Regarding Friedman. He was wrong too, because recessions are not the problem, they are the inevitable corrections of the false booms caused by monetary expansion and artificially low interest rates. Where do you think the artificially low interest rates come from? There is not a single bubble in history that hasn't been preceded by monetary expansion, certainly not in the US.

So maybe you should educate yourself before running your mouth about the Austrians. Listen to Murphy.

[jone4700]

Ujames1978 is just laughable.

[brscic]

Ok ,.. that is further from truth,.. This is fucking sad

[vindician]

@clawtheunconquered I know perfectly well how FRB works, I don't need a lesson from you.

Free-banking, the way e.g. Kinsella describes it, is really about short-term time deposits, where depositors are not guaranteed their money back on demand. That is an important difference from conventional banking.

[clawtheunconquered]

@vindician also, free banking prior to the National Banking Act of 1863 started the modern era of fiat money (it had occurred prior, but this time we under the Gold Standard and there wasn't any national or central bank), when depositors started trading bank deposit receipts for goods, which the banks took into consideration and started doubling the receipts as loans. leave it to say the process functioned legitimately, as i already stated, through private regulatory banks.

[clawtheunconquered]

@vindician what do demand deposits have to do with how much of your money is loaned out? free-banking is by definition a form of fractional-reserve banking, since only a fraction of reserves are held at the banks, and as far as competition goes banks make money through loans so as not to charge a fee, hence the term "free-banking." 100% reserve banking means all your funds, that is to say gold, are available for withdrawal at any time and banks make their money through membership fees.

[vindician]

@clawtheunconquered What I mean with fractional-reserves? Uhm, reserves that are fractional. Is there any other kind? Free banking doesn't recognize demand deposits, so it isn't actually fractional-reserve.

[clawtheunconquered]

@vindician well, it depends on what you mean by fractional-reserves. free-banking is ok, as long as government isn't involved with it. free-banking is self-regulating and natural.

[TWSceptic]

It only has a temporary positive effect, later it has a very negative effect in the long term. The net effect is clearly VERY negative.

If you disagree you don't understand economics.

[Ujames1978]

To everyone who's been involved in a "Comment War" with "Ujamesl978" on this channel, it is a clone account created for the sole purpose of impersonating me.

[Ujames1978]

Dear Jone4700,

In case you are referring to the comments posted on this video, "Ujamesl978" is a clone account, created for the sole purpose of impersonating me and destroying my reputation. (Notice the "l" replacing the "1.")

Either way though, I've reported the impersonation to Youtube and I hope that the channel will be shut down soon.