Korean Job Discussion Forums

[Pluto]

Here is a video about seven and a half minutes long explaining the fallacies of Keynesian economic philosophy. If government really wants to 'stimulate' the economy, politicians should cut taxes and support the entrepreneur. Moreover, too much government spending and redistribution distorts pricing signals further eroding any chance of a recovery.

Video Link.

[mises]

Well, we're going to find out.

[Jandar]

All Economic theories are wrong, hell economics is "the science which studies human behavior as a relationship between ends and scarce means which have alternative uses."

That's the best definition that I can find for economics.

So a science which is difficult to define is then categorized by theories, the rules of these theories are applied until such time as a calamity occurs then the rules of the opposing theory are applied until the next calamity.

Economics though hard to define is observable, and so there is hope.

[Jandar]

I should point out the two competing theories.

Keynesian theory - Intervention, the government should create to control
the economy, interest rates, taxation, redistribution, grants and lending etc.
this is what some people refer to as social engineering


Monetarist - This is supply side theory, That the economy is a simple beast and can be manipulated simply by controlling the money supply or interest rates.

Now both my explanations above are simplistic, you can read up more in the wiki.

Now the problems occur in the intervention aspect as a monetarist one would expect no intervention, however deregulation is as much an intervention as regulation is.

[Bigfeet]

You want to know which economic theory works?

Put a bunch of deer in a large grass-rich pen and watch what they'll do. They'll stuff themselves on the grass and reproduce at a prodigious rate until they've eaten up all the grass. And then they will die of starvation.

People do the same thing. But instead of having more kids they'll substitute by buying more things. Things are easier to maintain than kids. And instead of starving to death once all the food/money is gone they'll take it from others first.

[ontheway]

The Keynsian school of economics, along with all other socialist schools of thought, has been proven wrong both theoretically and empirically. There is NO rational reason to follow, support, believe in, or implement policies based on any of these ideas.

Monetarism was basically about money and has failed.

There is only one economics now. It is called the Austrian school, but it is rightfully called Economics. It is the only school of economic thought ever proven to be true, both theoretically and empirically.


Yesterday, the stock market voted on the Obama team. Down 4% and more. The Obama/keynsian/socialist team is following the FDR plan that caused the Great Depression to last an additional 7 years beyond when it would have been long over. Also proven.

[Jandar]

I don't know how well the Austrian school works, basically it's a hands off approach.

One thing can be said about Keynesian school is that it lead the US out of a deep depression.

It would appear that it would benefit the governments to choose the benefits of each school.

There needs to be a good economic policy that promotes growth, and creates wealth, and invests in the future.

I think a hands off approach only leads to monopoly capitalism and strengthens cartels eventually leading back to feudal social structures.

[Kuros]

[Bigfeet]

[Kuros]

[Jandar]

[Pluto]

The Austrian School of Economics is not discussed very much, but perhaps it should be. Argentina was briefly mentioned. The Kitchner Governments followed Keynesian philosophy to a tee yet coins are disappearing because they are now more valuable than the banknotes its central bank prints. Indeed, I believe Austrian solution is what can cure Argentina's ills.

[bucheon bum]

Pluto, no. Saying the Kitchner gov't followed Keynsian economics to the tee is like saying Menem gov't of Argentina followed the University of Chicago/Friedman approach to the tee. Both had lots of corruption, and had certain policies that no economist would endorse.

[ontheway]

[bacasper]