Keynes

A microeconomist that got a few things right in the little picture, but got virtually everything wrong in the big picture. While his micro-economic theories worked, he had all of his Macro-economic theories that we could tax ourselves into prosperity proven wrong by history, and explained why by Hayek. Staglation (1970s) couldn't happen in his models. The left still believes that Keynesianism works. Real economists do not. ℹ️ Info           ~ Aristotle Sabouni Created: 2019-01-31

John Maynard Keynes was an English mathemitician who invented leftist "economics" to appease the biases of a Socialist/Brit. During the Great Depression of the 1930s, Keynes spearheaded the idea that we could buy our way out of a recession/depression with enough spending/borrowing, that failed miserably and extended the depression by a decade. By the 70s the repeated failures of Keynesian ecnoomics to work as advertised meant it fell out of favor with reasonable people. But leftist like Obama, kept trying it, with it never living up to promises or expectations.

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Keynes was a Micro-economist who thought we could tax ourselves into prosperity. All of his Macro-economic theories were proven wrong by history, and explained why by Hayek. Since the left believes in Socialism and doesn't believe in history, they still think that real Keynesianism has never been tried.

Economists can't agree on anything, other than that Keynes was wrong. If it worked, then governments that spent the most would be the most successful. We could have spent our way out the Great Depression (it made it worse), Obamanomics would have worked (weakest recovery in history), there would have been a post-war depression (boom instead), there couldn't have been stagflation in the 1970, Communist China/Russia/Venezuela/North Korea would have been successes, and free'ing the markets of China/Russia/South Korea would have been disasters.

Keynes • [12 items]

The Broken Window Fallacy

This is a fundamental concept of economics (and logic) about seen advantages versus unseen costs. Henry Hazlitt summed up the art of economics as not merely looking at the immediate consequences but the longer effects of any act or policy, and tracing those consequences not merely for one group but for all groups. In other words, break a window and the glazer might win -- but the shopkeeper and customers did not.

Dispersed Knowledge

In the battle between Keynes and Hayek, history has shows Keynes wrong and Hayek the winner. Keynes models broke with Stagflation, Post WWII economy, Japans Lost Decades, China and Russian growth by privatizing. Hayek won the noble prize for explaining why: Dispersed Knowledge. Leaders don't know more than everyone else combined, then the more decisions you make from the top, the less efficient those decisions will be.

Government spending
I'm not arguing government spending never produces anything good. In theory, they can invest in infrastructure and that will benefit the economy in the long term. Hoover dam meant cheap power, and helped enable Vegas and L.A. However, for each Hoover dam, there are dozens of government spending disasters. When averaged, you get far more downs than ups for your economy because: politics.

IPencil

The podcast on i pencil is an economics treatise by Lawrence W. Reed, founder of fee.org (circa 1958), explaining the complexity of making something as simple as a pencil in the modern world. (No one person knows it all, thus no one person/committee can optimize it). I’d heard parts of this, was very familiar with fee.org, so read I pencil in it’s entirety. It’s definitely worth a listen and/or read.

Keynes and the 2 day work week
Keynes said in 1930 that our grandkids would work 2 days a week and have a 5 day weekend. This is a typical flaw in thinking of the brightest minds on the left: (a) that people don't value work/being productive or get rewards from it (b) that people given more cash won't want to spend it on things and earn still more (some will trade more income for more free time: while others will not).

Keynesian failures

It would be great if Keynesianism worked. But history shows it has failed every time it has been tried. Examples: the new deal, the new new deal, post WWII boom (cutting military should have caused depression), 1970's Stagflation broke the models, Japan's lost decades (Abenomics), every Communist economy that failed, every one that opened up and grew (N. Korea, Russia, China, Vietnam). All went the opposite of Keynes predictions.

Keynesianism
Keynes microeconomics was brilliant, his macroeconomics have never worked in the real world. It failed in Japan, Venezuela, China, Russia, North Korea, U.S. in every administration since WWII. Stopping it succeeded in China, Russia, and every country that gave up communism.

New Keynesian
Keynes microeconomic models work. His macroeconomic model of models, didn't. Stagflation proved it. Instead of rethinking their premise, the Keynsians just made New Keynesian models, so they could stick with their discredited religion. Keynesians today are really New Keynesians, all the stubborn wrong-headedness, with new models that still don't work.

Tragedy of the commons
We often get dire warnings about Malthusian Catastrophes, Ehrlich's population bombs and how individuals can't be trusted to manage shared interests. We need government to protect us from ourselves. History shows the opposite: individuals form small governments for common interests better than big governments, unless big government stops them.

Treasury View

"government spending crowds out private investment", is widely accepted as at least partly true. Keynesians want perfect efficiency, and thus bubbles and bursts are examples of inefficiency, and an opportunity for government to step in and spend (stimulate/destimuate) to where politicians think perfection should have been. However, once a program starts, it will soon crowd out private investment, and prove the Treasury view correct.

Trickle Down Economics

Cutting taxes gives people more money to spend. Unless you literally burn cash, the only things you can do with money is give it away, spend it, or save/invest it: and all stimulate the economy (create jobs/growth).(Saving is passive investing). Thus only debate is the best way to stimulate the economy. Nobody informed and honest will deny that trickle down works. If they argue it doesn't, they discredit themselves.

Why can't Keynesianism work?
The idea is that during recessions markets overreact to fear and government spending can offset that loss. It asssumes (1) an information vacuum (2) we know where spending should be (3) they will cut spending into the recovery (4) they're replacing like jobs (5) equal efficiency between public and private sector. None of those things is true, so Keynesian promises have never been realized.

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Economics The study of choice, scarcity, Social reactions to policies, and unseen consequences.

The Left Lies When the truth disagrees with your agenda, you can grow (change) or lie. The left usually chooses the latter.

Alt-Economics These are the lies (alternate economics) that are told by Fake Economists of the left, and repeated by their rubes and polemics.

Alt-Science This is a list of "alternate science": things that some claim is science, but isn't.

Economics The study of choice, scarcity, Social reactions to policies, and unseen consequences.

Keynesianism Keynes microeconomics was brilliant, his macroeconomics have never worked in the real world.

Tags: Economics  Left Lies  Alt-Economics  Alt-Science  Economics/tab  Keynesianism