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Just based on track record Keynesianism is the easy winner here. All successful economies in the world have adopted Keynesianism to one degree or another.
There are no nations successfully using Austrian school. When the U.S. had a relatively free-market unregulated economy in the late 1800's the U.S. suffered one deep recession after another. Unregulated banks relaxed lending standards to chase speculative bubbles (sound familiar?) -- the collapse in 1841 was so bad several states defaulted. With no government actor in the economy to inject liquidity nor stimulus spending, recessions were deeper and more painful than necessary. And of course we know how the laissez-faire 1920's ended.
The lesson of the above is that the government has to be a partner in the economy. Pure capitalism is inherently unstable, constantly lurching from overheated bubble to deep recession and back again.
The irony is that Keynes actually disliked socialism and communism.
Welfare has become a tool that enables artificial inflation, wage stagnation, and the maintenance of a socioeconomic caste system.
Yet, it is becoming increasingly necessary.
How is it a cause of wage stagnation?
Artificial inflation, maybe. Only if the capital owners of a service collude and fix their price. Otherwise, they just get undercut by someone with a better price. Answer this, how does welfare affect price differently then a working wage of the same $ amount?
About twice a year there is a confluence of events to be avoided at all costs. At midnight on the 31'st all the EBT cards get refilled. At that time about 25% of the social security payments are deposited. Many corporate pensions are deposited at that time. VA disability and many military pensions are deposited. June 1 is on a Wednesday. Never - ever go into a WalMart when the first day of the month is on a Wednesday. It's better to shop tomorrow on the 31'st. The shelves will be well stocked. You can get through the aisles. There will be no lines at checkout and there will be cheerful people all around, even in the parking lot.
About twice a year there is a confluence of events to be avoided at all costs. At midnight on the 31'st all the EBT cards get refilled. At that time about 25% of the social security payments are deposited. Many corporate pensions are deposited at that time. VA disability and many military pensions are deposited. June 1 is on a Wednesday. Never - ever go into a WalMart when the first day of the month is on a Wednesday. It's better to shop tomorrow on the 31'st. The shelves will be well stocked. You can get through the aisles. There will be no lines at checkout and there will be cheerful people all around, even in the parking lot.
The supply side will be prepared for this, and raise their prices, right? This would be collusion, price fixing, like I already mentioned.
The actual supply, i.e. the actual stock in a brick-and-mortar store, is a different phenomenon than the supply-demand curve. And honestly, is not very talked about in economics.
Unless I'm missing the point, or you're referring to something else. Guide me in the right direction.
But even he knew that unfettered capitalism would sow the seeds of its own destruction.
Just another thing that economic idiot got wrong. Free market capitalism hasn't failed. Crony capitalism, with it's manipulation, which is what Keynes was all about, has done us in.
Every successful economy in the world is Keynesian. Austrian economics is a pipe dream.
Almost every boom and bust in America is Keynesian. Austrian economics told us ahead of time, the Great Depression, the Dot com bubble and the housing bubble were coming and the correct reasons why. Anyone who thinks otherwise needs to put that pipe down.
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Government behavior has been Austrian
