.
REAL Money   
Synopsis   
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Search

Contact:
Foundation for Economic Growth,
P.O. Box 10-282,
Wellington, N.Z.
Email
The Foundation for Economic Growth is a group of like-minded individuals who have decided to act rather than accept New Zealand's continuing poor economic performance. The Foundation is not affiliated with any political party. Add Your Comments Here.

Add your email address here
Most recent update: Jul 3rd, 2017 - 15:54:31

REAL Economics : Keynes and Big Government
They All Talk About Keynes

One thing that interests me about Keynes is that he generates much discussion and very little agreement. This leads me to suspect that we are looking at a belief system rather than theories based on facts and reproducible evidence. The controversy raged so widely and wildly that Henry Hazlitt wrote a 450 page book entitled, "The Failure of the "New Economics" - An analysis of the Keynesian Fallacies.

(See: http://mises.org/store/Failure-of-the-New-Economics-The-P337.aspx)

Keynes had collected his thoughts into a book in 1936 grandly titled, "General Theory of Employment, Interest and Money." This was acclaimed by those who could use it as support for their claim that a government could stimulate an economy into action by issuing more money during a slump. That is in the bust phase of the boom/bust cycle such as we are in right now.

Henry Hazlitt wrote this book in 1959 and discussed each of Keynes' theories one chapter after another showing up all the loose thinking and muddled conclusions clause by clause as they occurred. 450 pages of error and befuddlement that has never been refuted by anyone that I can find.

Yet the myths persist because it suited Central Bankers to have some sort of theoretical support for their actions and they persisted in appealing to Keynes whenever they felt he helped their cause. That was until the 1970s when his theories were applied across many countries and shown to be woefully wrong. He has been resurrected again in defence of running fiat currencies and ignoring such inconveniences as the gold standard that Nixon discarded in 1971.

But such is the evidence against Keynes from a theoretical point of view as well as the physical evidence of the effects of printing and issuing large amounts of government printed money that he is being called into question by a wide variety of observers.

There are many references to Keynes on Google and Wikipedia and on Youtube so if you want to learn more then have a look.

Keynes fell into the same trap as Paul Samuelson and made mental leaps of approximation about functions and from that equation proceeded to apply the rigors of Differential Calculus. All of which amounts to a great pile of codswallop as Hazlitt explains so clearly in his dissection of Keynes "Grand Theory".

The only reason that economists and bankers continue with Keynes' ideas is that they suit the muddle of Central Banking with paper money very nicely. Nobody can be bothered reading Keynes' abstruse theory to check for themselves and modern interpretations can be anything that suits the occasion - for example Bernanke's decision to continue with Quantitative Easing.

As we pointed out earlier, people will always stick with their belief system as the truth will destroy too much of their self belief. Modern economics has become a mulch of beliefs with little or no attempt at any application of scientific truth.


Nov 12, 2010, 17:20

REAL Economics : Keynes and Big Government
Henry Hazlitt and the Rising Libertarian Generation

A short history of the life and times of Keynes most decisive critic - Henry Hazlitt.

Visit Website ]
Nov 12, 2010, 11:58

REAL Economics : Keynes and Big Government
Big Government Is Not Stimulus: Why Keynes Was Wrong

***

"The first lesson of economics is that we live in a world of scarcity. There is never enough of anything to satisfy all those who want it. The first lesson of politics is to ignore the first lesson of economics."
- Thomas Sowell

***

A quick look at Keynes theory that governments can stimulate their economies by increasing government spending. This theory was very popular in the 1930s as it suited the actions that US politicians wanted to take.

As a theory it is just plain wrong as a study of the after effects shows.

Visit Website ]
Nov 11, 2010, 17:31

REAL Economics : Keynes and Big Government
"Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem

The Hayek vs Keynes argument set to rap.
Visit Website ]
Nov 10, 2010, 16:14

REAL Economics : Keynes and Big Government
Hayek vs. Keynes Sequel Sneak Peek at The Economist Buttonwood Gathering

The first video was so popular that they came back by popular demand.

Visit Website ]
Nov 9, 2010, 16:28

REAL Economics : Keynes and Big Government
The Laffer Curve, Part I: Understanding the Theory

We have all grown up in the era of big government but some of the governments of the world have failed badly and have attempted to mend their ways.

Governments like taxation because this is their revenue - the more the better. But as they increase tax rates they find that things don't go as well as expected.

This is the first in a three part explanation of how governments could tax less and get more revenue - everybody wins.

Visit Website ]
Nov 8, 2010, 18:12

REAL Economics : Keynes and Big Government
The Last Word

It is perhaps fitting to leave the last word in this section to Keynes himself.

At a lunch at the Bank of England, just ten days before his death in 1946, John Maynard Keynes remarked:

"I find myself more and more relying for a solution of our problems on the invisible hand which I tried to eject from economic thinking twenty years ago."


Nov 4, 2010, 15:00























































Creating Wealth and Keeping it

The New book by Phil Scott, President of the Foundation for Economic Growth.

"This book is good, damn good and no statistics!" Lindsay Gordon, MA, MSC, PHD.

Every serious economics student should have a copy and read this ground-breaking foundation of clear economic thinking. Real Economics explains how human actions shape our world and why so much seems to be going wrong for Western economies. This book will bring enlightenment for the general reader who will see why a few very wealthy are becoming exceedingly rich and the middle classes are on the road to serfdom.

See more: www.realeconomics.co.nz