Tuesday, May 24, 2011 1:43:19 AM
I would like to see Keynes pitted against Mises next time.
Hayek kicked ass. The linchpin fallacy of Keynes' argument here can be found in the line
"The future`s uncertain, our outlooks are frail - that`s why free markets are so prone to fail."
Two things: 1) Yes, the future IS uncertain. Our outlooks ARE frail. That`s why the healthiest approach to mitigating the damage done by any faulty predictions is to disperse the decision-making power among as MANY people as possible (and therefore diluting each decision`s solitary impact), rather than concentrating MORE decisions of gravitas among FEWER people. That`s like the fundamental flaw of Monarchy, wherein the impact of bad decisions on the part of a consolidated ruler eventually outweigh any instances of `foresight.`
Tuesday, May 24, 2011 1:43:13 AM
2) That market he's referring to? It`s not free. That`s the PROBLEM. When losers are presented with the prospect of subsidy for their catastrophic failure (i.e., TARP) it creates a systemic Moral Hazard which does nothing to discouraging them from increasingly riskier behaviors as long as the American taxpayer is there to bail them out.
The latter `market` is neither free nor genuinely competitive. The only competition which takes place here is that of racing to the riskier end of the financial spectrum before your opponent can, so long as interest rates are low and reconciliation is postponed through inflation (especially, the exportation of) - that`s what`s allowed us to `spend spend spend` for so long, as Keynes might have alluded to.
Tuesday, May 24, 2011 1:43:03 AM
This is not Capitalism. It's a house of cards built upon a monetary system which snares you into an endless addiction to debt, and a postponement of the inevitable reconciliation which always comes after any major boom - though only destined to be proportionately worse according to the degree of depreciation our currency has forcibly undergone in the process.
Saturday, May 21, 2011 7:19:07 PM
Please please please... don't post things that entertained the dinosaurs.
...and what`s wrong with an entertained dinosaur? I thought this was excellent. A fair representation of their views, and provided some badly needed economic education. Kids today are not learning the important stuff.