100 thoughts on ““Fight of the Century”: Keynes vs. Hayek Rap Battle Round Two

  1. My understanding of Hayek’s theory is that he basically claims that we cannot get a clear and complete picture of the economy. We should therefore not try to get that picture but instead let local experts (i.e. individuals) handle local parts of the economy with the help of the market system (wich lets people know who wants or needs what goods most and allocates those goods to those people by awarding goods to the highest bidder). On the whole I agree with that (as a social scientist in training any limit to what we claim to know about society is at least somewhat appealing to me) I do however think that this theory is dependant on a somewhat equal division of goods or means to get those goods. Since there is quite a bit of inequality in the world that is at least somewhat unrealistic. Still on the whole I like Hayek’s theory and I use it whenever I can. I still want my government to spend more during busts though because I expect my government to provide things. Those things cost money. They are however probably cheaper when they are bought during a bust and I like it when my government gets things cheaper because it saves everyone’s money.

  2. Australia not having a recession for two decades is real world, not theories and feelings, that Keynes is right

  3. we watched this in our econ class last year, and I've watched it 100 times after. It's just amazing. Thank you guys

  4. Keynes' big flaw in his theory was in thinking that government investment can create a healthy economy by throwing money at anything that it can, because that will in turn create employment, which will in turn create spending, which will support the economy etc etc. In reality, the practice of government expenditure has to be more selective than that. Money spent on roads to nowhere is worthless waste. When that money is spent in infrastructure and projects that boost productivity, however, Keynes is dead-on. The I-95 on the Eastern seaboard has probably paid for itself a hundred times over by now, easily, and it was all because Eisenhower expanded the American highway system- but not without direction or purpose.

  5. "The economy is not a class you can master in college, to think otherwise is the pretense of knowledge"

  6. I like how at the end the rich cronies around the table with money and cigars went straight to Keynes. How appropriate

  7. "two world renown economists…" Actually one, and a complete hack who couldn't produce a single model or correct empirical prediction.

  8. Round 3 is waiting in the wings of the next great recession. With Friedman guest appearance and he force chokes Keynes to death in the end.

  9. Wait! Is that Ben Bernanke at 6:03, previous chairman of the federal reserve?
    It looks like exactly like him

  10. U know, I still don't even get how this is a question…. how does "stimulus spending" and subsidizing even help anyone? At most, it might temporarily help whatever group is subsidized… but then the real problem, whatever it is, is likely avoided altogether. Not to mention that there's not really such thing as 'moderate' Keynesian economics — it seems to be all or nothing; either don't spend at all, or gradually progress into massive debt.
    [I'd appreciate any helpful info & feedback]

  11. I wouldn't be surprised if a proponent of Keynesian economics and Hayek economics actually helped with the lyrics in some way. It sounds like a real debate with real talking points. Lol. And this might raise a few hairs but I think it's pretty well demonstrated that spending does help to reverse recessions. It's a tradeoff. Too much spending can lead to crowding out.

    And here's where I think I'm really going to ruffle feathers. Whether you're a proponent of Keynes or Hayek, if the economy is your main concern, you should be voting Democrat. Hayek said that the government shouldn't be trying to give subsidies to business interests. Obama tried to stop some of the subsidies given to big businesses by the billions. In a sense, I agree with both of them. Sure, let the markets free and let them fail, with some common sense regulation that helps encourage competition. And yes, of course spending helps with recessions. What they had back in the gilded age was laissez faire capitalism. Now what we have is even worse. Now, the government wants to give money to business interests and bow to their influence. It's almost like a weird bizarro, backwards communism. But instead of the government taking over the means of production, the means of production is taking over the government.

  12. A completely free market economy always leads to corporatism as the larger companies manipulate the market and shrink competition. A blend of oversight and free market is essential for a society that works for everyone.

  13. "If every worker was drafted into every army and fleet, we'd have full employment, and nothing to eat…"

    Hayek nailed it!

  14. Great idea – after the next financial meltdown hopefully society pays more attention to Hayek's warnings to a free society.

  15. Hayek predicted Cryptocurrencies back in the 70s, man was far beyond his time. The implications in The Use of Knowledge in Society still aren't properly understood and may never be.

  16. Hello there! Would you guys ever consider producing other videos for other subjects?? Those of us with kids in Classical Conversations NEED videos like these for categorical and propositional Logic. We use the James B Nance books and they just bury us every year. We need a lighthearted, inspirational video as a primer ♥️

  17. I think we should let deep depressions happen, make life worse for people and force them to do something instead of just sit on their butts and cry to the government for help

  18. Hayek is the real winner, and yet the world sees Keynes as the winner, and look where we are now.

  19. 1st round KO. Hayek clear winner and still champion. But we all know “boxing” is corrupt. Keynes is on the canvas in reality. Keynes wouldn’t even be a Keynesian today. I love how Keynes doesn’t know how he won in either.

  20. OK, now I will always remember Hayek and his theory. Great man – I thank you for helping us, the PEOPLE

  21. It's got a super right wing bent, there is something totally detached from reality that bankers love Keynes and Hayek is a man of the people. That being said it is informative.

  22. Thank you for this public service.
    It blows my mind how many Democratic friends I have who will burn friendships, alienate others in defense of Keynesian theory, which they don't even KNOW they are advocating for. Some light on this will hopefully let us look at this as policy, and NOT a war against each other.

  23. Those executives look like that CEO of Goldman Sachs.

    (Edit: that was Ben bernake, former head of the Fed.)

  24. keyne's theory isnt as bad as everyone says. When we are in a crisis, you could wait until consumption rises again because of the low prices, like Hayek says, but modern crises are so enormous because of our large world economy that this might take way too long. That is why Keynes theory will work better in a modern world.

  25. India's first PM Nehru spent many years attending Keynes's lectures and it encouraged him to embark on central planning. Boy do I wish he had attended Hayek's lectures.

  26. Which way should we choose
    more power bottom or service top?
    Let's listen to the gay sex
    Keynes and Hayek going down(on each other)

  27. I've been watching this video for years and I only just realized that Mike Munger is the security guard. HILARIOUS.

  28. When will we see the “long run” in this new era of apparently perpetually low, globally coordinated interest rate policies?

  29. So the black ref gives the victory to the guy that supports free handouts despite him just getting up from being knocked down. shocker.

  30. Are we gonna just let Keynes shout out to Malthus slide? Malthus was a horrible person and economist, probably the most debunked of all time.

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