Monday, July 23, 2012

John Maynard Keynes vs F.A. Hayek (rap version)

These two economists are both Nobel Prize winners yet both have entirely opposite views when it comes to economics and political philosophy. Keynes advocated central planning and management of the economy while F.A. Hayek believed that it's impossible to manage an organic economy and to think otherwise is the pretense of knowledge.

To learn a lot more about this, I would recommend the PBS documentary The Commanding Heights: The Battle For World Economy. It is quite long thought and for those who aren't really interested in economics, here's something that's very light and entertaining:

Keynes vs Hayek Rap

I love the economic references that are turned into something so comedic and easily understandable even by those who have not much interest in economics. Of course, I still recommend the PBS documentary but for some entertainment, the video above is highly recommended.

Of course, I love every single line in Hayek's rap in the video. It shows the power of the market, the power of the price mechanism, and how governments can't really manage the economy and will only lead to failure, corruption, and the opposite of progress and development.

The same applies to our money. Why should the government have a monopoly on money? It's really so immoral. When I say buy or invest gold I don't actually mean do this for profit's sake, no, it's actually a moral stance. It's protection from people who want think they can control the economy, a sentiment that Keynes shared with Lenin (the documentary "Commanding Heights" is actually a reference to Lenin because that is what he called the steel industry and he believed that it should be nationalized and monopolized by the State). 

If I were you, watch that PBS documentary. It'll really show you a lot more about history and a lot of alternative positions when it comes to economic policy. The mainstream in economics, those who advocate Keynesianism and those who are usually marginalized and discredited like those from the Austrian School of Economics.

Nietzsche mentioned something similar in Thus Spake Zarathustra about how those who are telling the truth, the prophets, they are usually discredited and even laughed at. We've seen the same happen to Ron Paul, Peter Schiff, Nigel Farage, and many other libertarians all over the world. But then almost every single prediction of theirs have come true and more are yet to come. My honest recommendation: protect yourself and invest in gold.

“In the beginning of a change the patriot is a scarce man, and brave, and hated and scorned. When his cause succeeds, the timid join him, for then it costs nothing to be a patriot.” - Mark Twain

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