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I think Ron Paul has probably the best foreign policy. It is his domestic policies that I don't like. The classical economic theories guided by the philosophy of Jean-Baptiste Say had its run from about 1870-1929 and it ended in disaster after a long period of big corporate dominance over government starting around the 1890s. Austrian economics is a mere clone of that thinking.
I think Ron Paul has probably the best foreign policy. It is his domestic policies that I don't like. The classical economic theories guided by the philosophy of Jean-Baptiste Say had its run from about 1870-1929 and it ended in disaster after a long period of big corporate dominance over government starting around the 1890s. Austrian economics is a mere clone of that thinking.
2 minutes of YouTubing would have proven that Paul is right on economics too:
There's not a dime's worth of difference between Ron Paul and Obama. Both are far left liberals.
The internet is a big place, but I'd suggest you start reading it...from the beginning, there are scores of places that will point out how absurdly wrong you are...unless that your post was actually just a joke?
Don't believe everything you see on you tube. Keynesian economics is not perfect, no economic system is, but to suggest that we go back to a system that lead to deep depressions every 20 years, depressions worse then anything seen since 1945, is not a solution. classical economics (which is basically what Austrians economics is) had a run from 1870-1929 and the problem with it is that business ultimately gets too powerful and greedy and starts to take advantage of both government and the economic system to cheat, and in so doing causes crashes. That is what Roosevelt fought against in the 1930s. To suggest that "gee the government just should get out of the way of the private sector" fails to acknowledge the fundamental fact that eventually certain groups in the private sector will accumulate enough power to ruin the economy through speculation if not kept in check by government regulation.
There is a clear pattern to show Austrian economics and deregulation of the economy does not work if you value economic stability. From 1933-1986 under Roosevelt era banking regulation we had no banking crisis. Then in 1986 Reagan said gee all this new deal regulation of small banks we don't need it, what is the worst that can happen and what happened...the savings and loan crisis of the late 1980s and early 1990s. Again in 1999 Clinton and the GOP said we don't need Glass-Steagall and all this new deal regulation to separate commercial banks and brokerage houses and what happened...the 2007-8 financial crisis. Like clockwork they implement a piece of Austrian deregulation and a sector of the economy booms and collapses within a matter of years.
The reason there is this co-relation between deregulation and economic failure is because almost every economic regulation comes as the result of hindsight from an economic problem. Why do you think banks need to be insured as per the FDIC? The answer is because before that with some banks you might as well have been giving your life savings to a day trader. Also do you ever ask yourself why the government requires public companies must file expansive reports as per the securities act of 1933? The reason is because before that companies routinely lied about how much money and debt they had to attract investors. Without the threat of federal prison the incentive to lie to get as much money as possible is huge. If you don't believe me look no further then Mitt Romney. He flip flops more then a fish on a dry dock. Where do you think he learned that? The answer is Bain Capital of course, where he made a living telling employees and board members of target companies that their company would be safe if they let him in, while at the same time telling his investors how he would milk those saps in the target company for everything they had.
The fact is Austrian economics simply doesn't work because it is the economic equivalent of closing a hospital because some patients cannot be saved. The Austrians argue that some regulation may not work all of the time so we should just throw in the towel. I think the most telling thing about this argument is that Austrians use the very failure of deregulation, and weakening of regulation to try and claim we need more deregulation and weaker government protections.
Last edited by Randomstudent; 12-20-2011 at 09:31 PM..
Don't believe everything you see on you tube. Keynesian economics is not perfect, no economic system is, but to suggest that we go back to a system that lead to deep depressions every 20 years, depressions worse then anything seen since 1945, is not a solution. classical economics (which is basically what Austrians economics is) had a run from 1870-1929 and the problem with it is that business ultimately get too powerful and start to take advantage of both government and the economic system to cheat and that is what causes crashes. That is what Roosevelt fought against in the 1930s. To suggest that "gee the government just should get out of the way of the private sector" fails to acknowledge the fundamental fact that eventually certain groups in the private sector will accumulate enough power to ruin the economy if not kept in check by government regulation.
There is a clear pattern to show Austrian economics and de regulation of the economy does not work if you value economic stability. From 1932-1986 under Roosevelt era banking regulation we had no banking crisis. Then in 1986 Reagan said gee all this new deal regulation of small banks we don't need it, what is the worst that can happen and what happened...the savings and loan crisis of the late 1980s and early 1990s. Again in 1999 Clinton and the GOP said we don't need glass-steagall and all this new deal regulation to separate commercial banks and brokerage houses and what happened...the 2007-8 financial crisis. Like clockwork they implement a piece of Austrian deregulation and a sector of the economy booms and collapses within a matter of years.
Austrian economics simply doesn't work because it is the economic equivalent of closing the whole hospital because some patients cannot be saved. In fact, I think the most telling argument about Austrian economics is that they use the very failure of deregulation to try and claim we need more deregulation.
I have studied both Keynesian and Austrian, and I am convinced that Austrian is right and Keynesian is wrong. Not just wrong, but terribly wrong. The only reason why people like you are believers, is because Keynesianism is what they teach in school.
May I suggest you this reading list to acquaint yourself with what's exactly wrong with our system:
I noticed how you gave a vague reply of "Don't believe everything you see on you tube" instead of explaining why your Keynesian maestros were clueless and ridiculing the Austrians when the Austrians were warning about the crisis. Or are you saying that videos are doctored? If you wish to take you and your advocacy of Keynesianism seriously, explain that.
I have studied both Keynesian and Austrian, and I am convinced that Austrian is right and Keynesian is wrong. Not just wrong, but terribly wrong. The only reason why people like you are believers, is because Keynesianism is what they teach in school.
May I suggest you this reading list to acquaint yourself with what's exactly wrong with our system:
I noticed how you gave a vague reply of "Don't believe everything you see on you tube" instead of explaining why your Keynesian maestros were clueless and ridiculing the Austrians when the Austrians were warning about the crisis. Or are you saying that videos are doctored? If you wish to take you and your advocacy of Keynesianism seriously, explain that.
I second Meltdown...great book. Would also throw "Economics in One Lesson" by Hazlitt
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A rock
