Archive for July 4, 2011
Arguably, the two leading western economists of the twentieth century were F.A. Hayek and John Maynard Keynes. Hayek championed free markets and Keynes provided the intellectual foundation for progressive government attempts to fine tune the economy.
Keynes is best known for his theory that government spending creates demand for goods and services which in turn increases GDP and jobs. Obama placed the Keynes strategy on steroids with roughly $4 trillion in federal government borrowing and spending since taking the office of President. Hayek ridiculed the idea that the government can create economic growth by taking money from one part of the economy, taking a slice for itself and then spending the remaining on goods and services the people are not demanding.
The group Econ Stories tries to make this all accessible to the layperson in a series of videos where actors playing Keynes and Hayek are rapping about their contrasting economic theories. In the second of the series, Hayek and Keynes debate the Obama stimulus. Enjoy.
- Keynes vs Hayek Rap Battles (burningcubicle.com)
- Reason.tv Replay: Keynes vs. Hayek Rap Video, Round 2 (reason.com)
- Reason.tv: Keynes vs. Hayek Rap Video, Round 2 (reason.com)
- Keynes v. Hayek, Round Two (theatlantic.com)
- Keynes and central planning (cafehayek.com)
- YOUTUBE U: Using Internet video, such as the recent rapping Keynes vs. Hayek clips, both to teach, a… (pajamasmedia.com)
- Keynes and Hayek, throwing down (cubiksrube.wordpress.com)
- Fight of the Century: Keynes vs Hayek Round 2 (themoderatevoice.com)
- Keynes vs. Hayek, Round 2: Top Down or Bottom Up? (scholarlykitchen.sspnet.org)
- Keynes vs. Hayek, Round II (truthonthemarket.com)
I made brief reference in Friday’s Open Mic header to a concept I learned a long time ago, about where to position your ice cream cart on the public beach to achieve the most sales.
Since it’s Independence Day, and many of us are going to spend this time either on the beach or blowing stuff up, or both, I wanted to discuss what’s called the Hotelling Model and its relation to politics.