Modern Pensées

Reconsidering theology, philosophy, culture, economics, and politics

Economics Rap: Keynes vs. Hayek

with one comment

Unfortunately, governments almost always act in a Keynesian manner.  The Austrians aren’t perfect but I think Hayek, et al, have a fair amount of wisdom for how we got here and how do we get out.  Your thoughts?

Written by Michael Graham

March 8, 2010 at 9:20 am

One Response

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  1. I must say that this is a great video. Much of our economic theory in America is greatly influenced by Keynes and his thought. Roosevelt’s ‘New Deal’ was founded on Keynesian thought. However, Keynes was flawed in several areas. Just an example: the graduated income tax was based upon Keynes’ idea that people would reach a certain level of affluence and then stop spending; he convinced the powers of the time to place taxes on income instead of spending in order to insure a constant and rising income for the gov’t. Plus, the idea of controlling the economy through gov’t forces is mildly socialist at best.

    There is one other idea not fleshed out in most economic thought: that is the idea that no matter what theory of economic thought you subscribe to, it will not work without some form of ethical control on the part of gov’ts & individuals that participate in the economy. A Keynesian, Marxist, Austrian or whateverian school of thought will ultimately fail if those in charge of the school and those participating in the school do not act in an ethical manner. I’m of the thought that only the Gospel of Jesus Christ can provide the ethical foundation necessary for any economy or gov’t to run smoothly.

    Thanks for allowing me to post my thoughts.


    March 8, 2010 at 11:11 am

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