{"id":13439,"date":"2020-08-31T19:16:09","date_gmt":"2020-08-31T19:16:09","guid":{"rendered":"https:\/\/www.duck9.com\/?p=13439"},"modified":"2020-08-31T15:19:29","modified_gmt":"2020-08-31T19:19:29","slug":"fear-the-boom-and-bust-cycle-a-hundred-years-ago-keynes-and-fa-hayek-argued-like-this-in-a-rap-battle","status":"publish","type":"post","link":"https:\/\/www.duck9.com\/blog\/fear-the-boom-and-bust-cycle-a-hundred-years-ago-keynes-and-fa-hayek-argued-like-this-in-a-rap-battle\/","title":{"rendered":"Fear the Boom and Bust Cycle!? A Hundred Years ago Keynes and FA Hayek Argued Like This in a Rap Battle"},"content":{"rendered":"
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By Larry Chiang<\/div>\n
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Fear the Boom and Bust Cycle!? <\/div>\n
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A Hundred Years ago Keynes and FA Hayek Argued Like This in a Rap Battle<\/div>\n
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Keynesian versus Austrian economics. <\/div>\n
Keynes and Hayek<\/div>\n
https:\/\/www.youtube.com\/watch?v=d0nERTFo-Sk<\/div>\n

https:\/\/www.youtube.com\/watch?v=ejeIz4EhoJ0<\/span><\/p>\n

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<\/span><\/div>\n
The Original Economics Rap Battle<\/div>\n
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[John Maynard Keynes & Frederick Hayek]<\/p>\n

LYRICS:<\/p>\n

<\/p>\n

[chorus] We\u00e2\u20ac\u2122ve been going back and forth for a century I want to steer markets I want them set free There\u00e2\u20ac\u2122s a boom and bust cycle and good reason to fear it Blame low interest rates No, it\u00e2\u20ac\u2122s the animal spirits<\/p>\n

[chorus end] {Keynes} John Maynard Keynes, wrote the book on modern macro The man you need when the economy\u00e2\u20ac\u2122s off track, [whoa] Depression, recession now your question\u00e2\u20ac\u2122s in session Have a seat and I\u00e2\u20ac\u2122ll school you in one simple lesson BOOM, 1929 the big crash We didn\u00e2\u20ac\u2122t bounce back\u00e2\u20ac\u201deconomy\u00e2\u20ac\u2122s in the trash Persistent unemployment, the result of sticky wages Waiting for recovery? Seriously? That\u00e2\u20ac\u2122s outrageous! I had a real plan any fool can understand The advice, real simple\u00e2\u20ac\u201dboost aggregate demand! C, I, G, all together gets to Y Make sure the total\u00e2\u20ac\u2122s growing, watch the economy fly<\/p>\n

{Keynes & Hayek chorus} We\u00e2\u20ac\u2122ve been going back and forth for a century I want to steer markets I want them set free There\u00e2\u20ac\u2122s a boom and bust cycle and good reason to fear it Blame low interest rates No, it\u00e2\u20ac\u2122s the a-n-i-m-a-l s-p-i-r-i-t-s<\/p>\n

{Keynes} You see it\u00e2\u20ac\u2122s all about spending, hear the register cha ching Circular flow, the dough is everything So if that flow is getting low, doesn\u00e2\u20ac\u2122t matter the reason We need more government spending, now it\u00e2\u20ac\u2122s stimulus season So forget about saving, get it straight out of your head Like I said, in the long run; we\u00e2\u20ac\u2122re all dead Savings is destruction, that\u00e2\u20ac\u2122s the paradox of thrift Don\u00e2\u20ac\u2122t keep money in your pocket, or that growth will never lift Because Business is driven by the animal spirits The bull and the bear, and there\u00e2\u20ac\u2122s reason to fear its Effects on capital investment, income and growth That\u00e2\u20ac\u2122s why the state should fill the gap with stimulus both The monetary and the fiscal, they\u00e2\u20ac\u2122re equally correct Public works, digging ditches, war has the same effect. Even a broken window helps the glass man have some wealth, The multiplier driving higher the economy\u00e2\u20ac\u2122s health And if the Central Bank\u00e2\u20ac\u2122s interest rate policy tanks A liquidity trap, that new money\u00e2\u20ac\u2122s stuck in the banks! Deficits could be the cure, you been looking for Let the spending soar, now that you know the score My General Theory\u00e2\u20ac\u2122s made quite an impression [A revolution] I transformed the econ profession You know me, modesty, still I\u00e2\u20ac\u2122m taking a bow Say it loud, say it proud, we\u00e2\u20ac\u2122re all Keynesians now <\/p>\n

{Keynes & Hayek chorus} We\u00e2\u20ac\u2122ve been going back and forth for a century I want to steer markets I want them set free There\u00e2\u20ac\u2122s a boom and bust cycle and good reason to fear it Blame low interest rates No, it\u00e2\u20ac\u2122s the animal spirits<\/p>\n

{FA Hayek} I\u00e2\u20ac\u2122ll begin in broad strokes, just like my friend Keynes His theory conceals the mechanics of change, That simple equation, too much aggregation Ignores human action and motivation And yet it continues as a justification For bailouts and payoffs by pols with machinations You provide them with cover to sell us a free lunch Then all that we\u00e2\u20ac\u2122re left with is debt, and a bunch If you\u00e2\u20ac\u2122re living high on that cheap credit hog Don\u00e2\u20ac\u2122t look for cure from the hair of the dog Real savings come first if you want to invest The market coordinates time with interest Your focus on spending is pushing on thread In the long run, my friend, it\u00e2\u20ac\u2122s your theory that\u00e2\u20ac\u2122s dead So sorry there buddy if that sounds like invective Prepared to get schooled in my Austrian perspective<\/p>\n

{Keynes & Hayek chorus}<\/p>\n

We\u00e2\u20ac\u2122ve been going back and forth for a century I want to steer markets I want them set free There\u00e2\u20ac\u2122s a boom and bust cycle and good reason to fear it Blame low interest rates No, it\u00e2\u20ac\u2122s the animal spirits The place you should study isn\u00e2\u20ac\u2122t the bust It\u00e2\u20ac\u2122s the boom that should make you feel leery, that\u00e2\u20ac\u2122s the thrust Of my theory, the capital structure is key Malinvestments wreck the economy The boom gets started with an expansion of credit The Fed sets rates low, are you starting to get it? That new money is confused for real loanable funds But it\u00e2\u20ac\u2122s just inflation that\u00e2\u20ac\u2122s driving the ones Who invest in new projects like housing construction The boom plants the seeds for its future destruction The savings aren\u00e2\u20ac\u2122t real, consumption\u00e2\u20ac\u2122s up too And the grasping for resources reveals there\u00e2\u20ac\u2122s too few So the boom turns to bust as the interest rates rise With the costs of production, price signals were lies The boom was a binge that\u00e2\u20ac\u2122s a matter of fact Now its devalued capital that makes up the slack Whether it\u00e2\u20ac\u2122s the late twenties or two thousand and five Booming bad investments, seems like they\u00e2\u20ac\u2122d thrive You must save to invest, don\u00e2\u20ac\u2122t use the printing press Or a bust will surely follow, an economy depressed Your so-called \u00e2\u20ac\u0153stimulus\u00e2\u20ac\u009d will make things even worse It\u00e2\u20ac\u2122s just more of the same, more incentives perversed And that credit crunch ain\u00e2\u20ac\u2122t a liquidity trap Just a broke banking system, I\u00e2\u20ac\u2122m done, that\u00e2\u20ac\u2122s a wrap. <\/p>\n

{Keynes & Hayek chorus}<\/p>\n

We\u00e2\u20ac\u2122ve been going back and forth for a century I want to steer markets I want them set free There\u00e2\u20ac\u2122s a boom and bust cycle and good reason to fear it Blame low interest rates No, it\u00e2\u20ac\u2122s the animal spirits<\/p>\n

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youtu.be\/d0nERTFo-Sk<\/a> from Larry Chiang 650-283-8008\u00e2\u20ac\u2122s Tweet<\/a> <\/p>\n

Credit Jo\u00c3\u00a3o Gabriel Pimentel<\/span><\/div>\n



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Sent from my personal iPhone, 650-283-8008, <\/span>that Steve Jobs texted me on<\/span><\/p>\n
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https:\/\/www.youtube.com\/watch?v=ejeIz4EhoJ0<\/span><\/p>\n
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<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

By Larry Chiang Fear the Boom and Bust Cycle!?  A Hundred Years ago Keynes and FA Hayek Argued Like This in a Rap Battle Keynesian versus Austrian economics.  Keynes and Hayek https:\/\/www.youtube.com\/watch?v=d0nERTFo-Sk https:\/\/www.youtube.com\/watch?v=ejeIz4EhoJ0 The Original Economics Rap Battle [John Maynard Keynes & Frederick Hayek] LYRICS: [chorus] We\u00e2\u20ac\u2122ve been going back and forth for a century […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-13439","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/13439","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/comments?post=13439"}],"version-history":[{"count":0,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/posts\/13439\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/media?parent=13439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/categories?post=13439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.duck9.com\/blog\/wp-json\/wp\/v2\/tags?post=13439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}