Keynes Vs. Hayek

These two videos are perfect for explaining the difference between Keynesian economics which dominate U.S. policy today, and the Austrian perspective on economics, which advocate free markets and laissez faire economics. In the videos John Maynard Keynes “rap battles” with Friedrich Hayek about whose economic ideas are smarter when trying to grow markets.

This first video is called “Fear the Boom and Bust” and lays out the general disagreement between Keynesian economics and the Austrian perspective.

This second video is called “Keynes vs. Hayek Round Two” and talks more about the current economic state of the U.S. and which philosopher would solve the problems better. Keynes takes the position that the bailouts, stimulus and wars have saved our economy, where as Hayek argues that those things are exactly what cause this boom and bust cycle which destroys our economy, and has placed us on the ledge of economic disaster.

2 thoughts on “Keynes Vs. Hayek

  1. “Creating employment is a straightforward craft, when the nation’s at war and there’s a draft. If every worker was staffed in the army and fleet,we’d have full employment, with nothing to eat”…. This says it all . Like hiring folks to dig holes one day, and others to fill them back in the next. Low unemployment with nothing to eat. Hayek in a KO!

  2. Exactly, that is one of my favorite lines as well. Some people can’t seem to understand the fact that before there can be consumption, there has to be production.

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