Documentary on Keynesian Economics and the Great Depression.
Video Rating: 3 / 5
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The root problem of our system has been explained by theoreticians such as
Sismondi and Thompson in the past. It is underconsumption. Keynes
emphasises the need for government spending so as to boost income for the
middle and lower classes and through the multiplier of consumption to
regenerate economic motion. The economy is a process of countless
individual decisions, however, an economy that lacks spending in grass
roots level eventually is led to sclerosis.?
Agreed. Partisanship and stupidity are much more potent and prevalent
forces than receptiveness.
This video is incomplete. The graph you show starts in 1929 but, the cause
of the Great Depression was really the Federal Reserve printing large
quantities of money to finance the First World War, around 1913. This
inflation of the money supply created the financial bubble that burst
later, in 1929. FDR prolonged the Depression with his socialist policies.
@losheva Their is inflation because we are pumping money into demand and
all of (I) is going to speculation
@losheva Then I cut wages to pay for the losses?
Yea. Unfortunately, that idea would never fly. Forevermore will politicians
argue about the validity of one system vs. another. And unfortunately they
will always fall back on old systems. Innovation has become a thing of the
past in today’s society!
@Salvysahagun there’s debt and debt, example public debt must be
anti-cyclical as Keynes said, to avoid bubbles and recessions, then if his
words were misinterpreted it’s not his fault, but when debt is “private”,
debt gets out of control. I understand that you’re a “Austrian”, but as
Marxism, this school is utopian ideology, real world is
different.P.s.Malthus studied economic cycles when Fed didn’t exist.
Austrian theory is one theory, and wrong for me, confuses cause and effect
@gulbirk The most succesful countries lean much further toward capitalism
than socialism. America is doing better than Europe because we have freer
markets. The reason why China suddenly became a competetive country in is
because they started adopting capitalism. The living conditions in
capitalist leaning countries are far better than socialist leaning
countries. You have no idea what the facts are.
@kitycalifornia …and Smith was wrong about a lot of things in Wealth of
Nations. Keynes just continued the error.
@Salvysahagun so for you in case of depression, therefore in case of lack
of demand it’s a good thing cut wages? so as to suppress consumption
therefore suppress demand again? sage
@jessemaurais Bubbles are proportional to the value of the dollar. Once
there is an increase in money supply by means of easy lending practices or
excessive printing of money (Fiat) going after the same amount of goods,
causes artifiacial inflation. Which leads to the devaluation of a currency.
The same factors that brought about the Great Depression are the same
factors that brought about the recent Recession. As more money became
available speculation increased its just simple economics.
@Salvysahagun a) if there was a lake of demand there wouldn’t be a
recession (in the U.S. first in Europe now) b) if it were enough to
increase the money supply to push the demand, well then it means you did
not ever read Keynes and it seems pointless to continue the discussion.
That was the point of the AAA. In fact, there is no difference between
Hoover’s policies and FDR policies. FDR had made campaign promises to put
the fiscal house in order instead of spending and increasing the public
debt. “I cannot see a way to continue the spending, it does not work” –
Henry Morgenthau, Jr. 52nd Treasury Secretary of the United States, chief
architect of the New Deal
@Salvysahagun when you say that there is a lack of money, plus, you
contradict yourself, assuming that ruled M. Friedman, how can there be
inflation with shortages of money, if inflation is a purely monetary
phenomenon? there is inflation when money supply is higher than money
demand.
@Salvysahagun The Bank was privately owned and operated from its foundation
in 1694. It was subordinated to the Treasury after 1931 in making policy
and was nationalised in 1946. Who is the ignorant?
@spec24 Money changing hands is what makes an economy work. If everyone
just put their money into their mattresses and stayed home, there would be
no economy.
Nah, I think Keynes was more of a Fascist than a “Economist of Keynes”.
Hitler was the only true dictator to fully utilize the great anti-semitic
economic principles of Keynes. Roosevelt was more of a Conservative…
@Dawgmandede what was the purpose?
its way back up. Fortunately we had FDR, a man who felt that to allow that
to happen was unnecessary and inhumane! One will notice that after we
abandoned the Gold Prison Cage Standard in 1933 and implemented
infrastructural stimulus the economy began to bounce back. With the
enactment of Glass-Stegall in 1933, the FDIC was created so as to prevent
people from losing their savings to unnecessary bank runs.
I love it how 2 people claped after he finished his redistribution bit…
I’m sure this has been mentioned already, but nevertheless, the
implementation of Keynesian economics didn’t work during the Great
Depression (how can it possibly be said that such a program worked when,
more than a decade later, the economy still hadn’t improved yet?), nor is
it working now. In fact, it’s just making things far, far worse. And, I’m
sorry, but the narrator sounds too much like Paul Krugman when he excuses
its lack of success by claiming that it simply wasn’t implemented enough.
@losheva Not an Austrian you ignorant turd see my first comment.
Violence is most certainly used to raise tax revenue. Why would people pay
if they were not afraid of men with guns coming to lock them up if they
refuse?
False! World War II got the united states out of the Great Depression.
FDR’s New Deal inflated the financial bubble and there had to be a bounce
back after the war to make up for the draft that affected other sectors of
the economy. Keynesian economics has been a total failure. It has
systemically led to increased debt due to artificially low interest rates,
increased spending, inflation, and mal-investment. The Austrian school was
and is correct.
So the gov’t taking money out of the economy and then putting it back in
the economy is the answer? Genius Keynsians.. just brilliant.