The problem is, this video doesn't understand the difference between Keynesian economics (which built this country after World War II into a super power) and Reagonomics.
No Bret, the fact that we were the only remaining industrial powerhouse after World War II was the reason for our economy recovered.
It's simple logic really. If you bomb another country's industry into oblivion and destroy a large portion of their young workers in a war, you create an environment where you can produce goods and services on a much more massive scale.
None of Keynes' theories call for full-scale wars with other nations, as far as I know.
Odd, how Keynesian economics was then implemented by these countries whose industry was bombed into oblivion and they are also economic powerhouses. Pretty much all of Western Europe and Japan built themselves up out of the rubble very effectively using Keynes' ideas.
It is appropriate that this post is titled "Economics 101," since it is such a infantile, primitive view of economics.
There's ZERO conclusive proof Europe and Japan exclusively used Keynesian econommics for their "economic miracles." Bretton Woods, of which Keynes was a part of, had probably a greater impact. Determining which parts did the trick is impossible.
Maybe some elements were used but not in the way we've come to understand it. It's hard to determine that. I never heard a professor in my time of studying European history that Keynes was the key to their miracles - unless it was "understood" and I missed it.
It was just a theory he posited and it was skewed by the war. People confuse the two.
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The problem is, this video doesn't understand the difference between Keynesian economics (which built this country after World War II into a super power) and Reagonomics.
ReplyDeleteNo Bret, the fact that we were the only remaining industrial powerhouse after World War II was the reason for our economy recovered.
ReplyDeleteIt's simple logic really. If you bomb another country's industry into oblivion and destroy a large portion of their young workers in a war, you create an environment where you can produce goods and services on a much more massive scale.
None of Keynes' theories call for full-scale wars with other nations, as far as I know.
Odd, how Keynesian economics was then implemented by these countries whose industry was bombed into oblivion and they are also economic powerhouses. Pretty much all of Western Europe and Japan built themselves up out of the rubble very effectively using Keynes' ideas.
ReplyDeleteIt is appropriate that this post is titled "Economics 101," since it is such a infantile, primitive view of economics.
"Pretty much all of Western Europe and Japan built themselves up out of the rubble very effectively using Keynes' ideas.”
ReplyDeleteProof?
"Keynesian economics (which built this country after World War II into a super power)”
ReplyDeleteswiftfoxmark2 provided the proof against that statement.
There's ZERO conclusive proof Europe and Japan exclusively used Keynesian econommics for their "economic miracles." Bretton Woods, of which Keynes was a part of, had probably a greater impact. Determining which parts did the trick is impossible.
ReplyDeleteMaybe some elements were used but not in the way we've come to understand it. It's hard to determine that. I never heard a professor in my time of studying European history that Keynes was the key to their miracles - unless it was "understood" and I missed it.
It was just a theory he posited and it was skewed by the war. People confuse the two.
Bret, do you have a link?
Besides, I think we grossly oversimplify Keynes.
Elimination of competition by force - war.
ReplyDeleteThe two world wars destroyed Britain and France, the first world war destroyed Germany and it recovered, destroyed again in WWII it again recovered.
Keynesian economics had nothing to do with the two recovered economies and has stagnated the US economy.
Growth of the US economy was a direct result of the elimination of competition.
The competition regained strength based on the talents of the people (something that was already evident before the elimination).
Germany is is the world's second largest exporter and 14 in population - the US is the number three exporter and number 3 in population.
Why is the US not the number one exporter as it once was?
Keynes was a statist actuary.