Posted on 12/07/2010 3:46:49 PM PST by camerongood210
Could I trouble my fellow FReepers in answering this question? What is the best argument against Keynesian economics? I have just learned a family member has been brain-washed into believing this economic theory by his Econ professor and figured I would take a shot at converting him. I know the basic arguments but he is an ECON major and probably has some good rebuttals. That being the case, what do you guys think?
I’d say one of the best arguments is the years 2008-2010.
The Stimulus plan and todays unemployment rate isn’t good enough?
How about the Great Depression? It only got better after parts of the New Deal were thrown out.
Frederick Hayek and Thomas Sowell have done some of the best work arguing against Keynesian economic theory. I think William F. Buckley did some good debates with Galbraith in the 50’s or 60’s as well.
SnakeDoc
Unfortunately, he has a logical mind like me and simple answers like that won't suffice.
I was thinking about something along these lines:
First, get him to agree that a capitalist economy basically boils down to private sector jobs. Then ask if government spending creates or destroys private sector jobs.
Another point to make would be that the government produces nothing (except debt, I suppose). Also, government has no money other than what they loot from the private sector.
Just remember, you if you take out the “esi” and insert a “y” you are stuck with Kenyan...
I think...?
Use your own home finaces as an example and your wifes’ credit card.
The antitdote this young man should propose is everyone in the class read "The Road to Serfdom" by Fredrick A. Hayek and then compare Hayek/Freidman/Smith to Obama and Keynes in a true Harvard Style debate. 1/2 the class gets the commie the other half the good guy. Have it in the auditorium and broadcast it on their College Radio and/or local govt TV channel(s).
But the Prof doesn't have the cohones to let that happen. Chances are he has never created a thing, a job, met a payroll.
Point out that the Keynesian economics of FDR’s New Deal was a complete failure. After seven years unemployment remained over 10%. World War II interupted the Depression. Depression ended with the death of FDR and Republican tax cuts in 1946.
Rather than give you any specific arguments, I’ll direct you to the work of Adam Smith, David Ricardo, J.S. Mill, J.B. Say, Frederic Bastiat, Alfred Marshall, Arthur Pigou, Ludwig Von Misses, F.A. Hayek, Joseph Schumpeter, Murray Rothbard, Frank Knight, Milton Friedman, and Henry Hazlitt.
If the root problem is dangerously high levels of debt, you can’t fix it by going deeper into debt .
It’s like paying off Mastercard using your Visa and calling it “deficit neutral” !
Keynes was a queer fellah who happened to be a genious in the field of economics. He is referred to as the father of economics. But you need to look at QE2, for example. He believed in increasing the money supply to level out the economy. But as you will soon see, when you increase the money supply with low unemployment is causes stagflation. You will soon see gas and other products increase in price.
I’m not an economist but am a returning MBA student. The kid is a liberal obviously. There are much smarter freepers here on this matter, but that’s my take.
Prov 22:7 The rich rules over the poor, And the borrower becomes the lender’s slave.
They think you can spend your way out of debt. ‘Nuff said.
“Use your own home finaces as an example and your wifes’ credit card.”
Better yet ... use your Amex to pay your MC, then tell the wife it doesn’t matter how you did it, the debt is off the books. When the MC bill comes, patiently explain how that works to the bank. If you have to, get a loan and pay off MC. You will then have paid off both debts and will only have to worry about the loan as a separate debt. Later.
The best argument is that governments will use Keynsian economics to justify doing what they always want to do, anyway, which is buy votes using other people’s money. They will borrow in good times and bad, all the while invoking the economic theories of Keynes. But they will never pay back what was borrowed.
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