Friday, April 29, 2011

Keynes and Hayek, second round

My recent economics professor Russ Roberts and producer John Papola are back with a new Keynes versus Hayek rap video. In basically every particular, I have to say that I prefer this one to their first effort. Take a look.

You can see their first effort here. If you haven't read much Hayek, a good place to start is "The Use of Knowledge in Society" and the free Reader's Digest condensed edition of The Road to Serfdom.


Hempy said...

It’s rather clear that neither of your so-called economists are familiar with the writings of Adam Smith, the father of capitalism.

Nor obviously are they familiar with the writings of Alexander Hamilton. Like you, neither are they particularly keen on American values.

Bluegrass Policy Blog and their source of feudalism—the Cato Institute, articulate the road to serfdom.

Holly said...

I don't think I understand, Hempy. Why does this video seem to imply that we are not keen on American values or on capitalism? How do you define serfdom?

Hempy said...

Serfdom is what was practiced under feudalism. Feudalism was based on taking care of the lords of the manors and to hell with the serfs.

Neither of the characters seemed to have any understanding of Adam Smith's Wealth of Nations.

For example, when there's a short fall in revenue, Smith advocated finding new sources of revenue.

Smith also disapproved of bounties. Today, we call those "tax incentives", "deductions, credits, grants, entitlements" and anything else that government gives to businesses.

Then there are the free riders. The derivative markets, bank laundered drug money and campaign contributions. No taxes are paid on any of that money.

Alexander Hamilton advocated a proportional tax on the movement of money.

He also defined the general welfare clause broadly. So is Article I, Section 8, Clause 8 of the Constitution to be defined broadly.

Neither of the actors addressed any of these issues. Hence, they were not keen on American values as enunciated in the Constitution and articulated by our founders.