Keynesian vs Austrian

Supergrass
Supergrass

Keynesian Economics vs Austrian Economics.

Which school of thought is the right one, Veeky Forums?

All urls found in this thread:
https://www.youtube.com/watch?v=uZr0WQxQpLs
https://www.youtube.com/watch?v=d0nERTFo-Sk
https://www.youtube.com/watch?v=cUTLCDBONok
https://www.youtube.com/watch?v=GTQnarzmTOc
Stark_Naked
Stark_Naked

@Supergrass
(((Keynesian Economics)))

Good goy, without us controlling the entire monetary system the economy would surely fail!

Garbage Can Lid
Garbage Can Lid

Keynesian Economics

Ideas like this all originate from the (((same group of people))) and are designed to be contagious and easy to understand so people fall for the ruse.

MPmaster
MPmaster

Seriously, which one is the RIGHT ONE?

How do I choose?

NO MEMES PLEASE

happy_sad
happy_sad

@Stark_Naked
Nice try schlomo.
Keynes was anglo, whereas all major austrian economics economists were kikes.

SomethingNew
SomethingNew

@Garbage Can Lid
t.kike in damage control

w8t4u
w8t4u

@MPmaster
((Hayek)))
(((Rothbard)))
(((Von Mises)))
Nah thanks

Methshot
Methshot

Please, how THIS fuck my life without my knowledge?

Carnalpleasure
Carnalpleasure

Peter Shiff is Austrian school supporter and he predicted the housing bubble crash pretty good:
https://www.youtube.com/watch?v=uZr0WQxQpLs

People were laughing at them. Not so much in 2008 heh

TurtleCat
TurtleCat

having money sitting there in a bank account generates economic value

Fuck off Austrians

LuckyDusty
LuckyDusty

@TurtleCat
Why would you have it sitting in bank account?

I think it makes sense to invest in indices, or just invest in companies (invest in production). That is the whole point. Spend less, produce more. So invest in production. Don't be a consumer, be a producer.

Makes sense, does it not?

New_Cliche
New_Cliche

@Supergrass
which one is right?

Nojokur
Nojokur

@LuckyDusty
If everyone thought that, there would be no banks. Yet banks exist, therefore your economic philosophy has no grounding in reality and tries to solve problems by declaring an ideal behavior and expecting people to obey.

Spazyfool
Spazyfool

@MPmaster
Austrian is correct in principle but liberals cry and bitch too much and fuck everything up

Stark_Naked
Stark_Naked

Most economists I know IRL pick and choose cafeteria style from all schools of economics, and only a few die-hard radicals cheerleading for ideologies claim to belong to a "school" of economics.

Need_TLC
Need_TLC

This explains it quite well. Basically, Austrian is a meme, while Keynesian is what all pro economists choose because it's proven to work.

Booteefool
Booteefool

@Nojokur
fast food is bad for you
if everyone thought that there'd be no McDonald's
you and your senpai waddling around WalMart buying shit you can't afford on credit
wew rock solid reasoning there

farquit
farquit

@TurtleCat
You understand that the financial services industry uses the money in the banks right? Did you know retail banks have investment bank branches?

They only pay you shit interest but they get rich using your money. That's why you learn to invest yourself...
hurr I'm scared to learn I only buy indeces
cucking intensifies

SomethingNew
SomethingNew

@Booteefool
I never claimed that banks aren't worthless as a investment vehicle, I said they are used and implied they are probably the most widely used. Most people realize that fast food is bad for them as much as they realize there are more profitable things they can do with their money than stick it in the bank, yet they still go withdraw $50 from their 0.00125% APR savings account and head down the Taco Bell to inhale recycled cardboard dyed to look like ground beef. People aren't rational and no one gives a fuck about whatever academic circlejerking that comes down from the ivory tower.

w8t4u
w8t4u

@New_Cliche
TL:DR no time for this

Bidwell
Bidwell

@farquit
They must be doing a wonderful job improving the economy considering the market would be trading sideways for the last 8 years if it wasn't for QE.

iluvmen
iluvmen

@farquit
That's why you learn to invest yourself...
Good luck beating Warren Buffett.

Can you beat him?

No?

Then why not just invest in Berkshire Hathaway?

Skullbone
Skullbone

Alright Veeky Forums, are negative interest rates a Keynesian idea, or an Austrian idea?

forces organizations to spend rather than save which is Keynesian

Austrians think lower interest rates magically improve the economy

Burnblaze
Burnblaze

@Supergrass
Austrian

TurtleCat
TurtleCat

@Skullbone

Both are incorrect, but the Keynesian is the more retarded of the two

Forcing spending is not a net positive, especially if you're allowing bridges to nowhere and corporate stock buybacks.

eGremlin
eGremlin

@Supergrass
Austrian

BinaryMan
BinaryMan

@Stark_Naked
(((Austrian School)))

Good goy, if the banks didn't have all the money, the entire economy would surely fail!

FastChef
FastChef

@Supergrass
with both there are some things where one is right and the other is wrong.
with both there are things where both are right but under different situations
and with both there are things where both are wrong.

whereismyname
whereismyname

@Supergrass
Keynesian
https://www.youtube.com/watch?v=d0nERTFo-Sk

Keynes is right though, but incomplete. Current scenario is different then his age. Right now inflation is low. Government spending isn't helping or increasing inflation all that much.

Nojokur
Nojokur

Keynesian's build measurements that will always prove them correct in the short term (which is all you need to affect political change) whereas the Austrian's criticism will always come true in the long term when it is already too late.

2016/17 is 2007/08 all over again, I can't help but feel Marxists have pushed all of this just to discredit Capitalism in general.

The most ridiculous thing I've ever heard is
price inflation is the grease of our economies wheels
I'm sure that's true in the short term with the current measures of GDP, CPI & Unemployment.

Raving_Cute
Raving_Cute

@Carnalpleasure
austrian cucks always predict a crash. A broken clock is right twice a day.

Lunatick
Lunatick

@New_Cliche
money represents human time
stopped reading there. 100% chance this was written by a STEM cuck who thinks he understand economics but he doesn't

Garbage Can Lid
Garbage Can Lid

@Raving_Cute
Specifically rants about blowing up a bubble in the sub-prime market
le broken clock meme

kys.

Crazy_Nice
Crazy_Nice

@Garbage Can Lid
according to austrian cucks every growing sector is a bubble

5mileys
5mileys

@Crazy_Nice
Only when the causes of its growth are artificial....surely that isn't beyond your comprehension mate.

takes2long
takes2long

@w8t4u
tl;dr you're a fuckwit

askme
askme

@5mileys
the definition of "artificial growth" in austrian cuckonomics is absolutely retarded

hairygrape
hairygrape

@Lunatick
money represents whatever people value and people value time so it is one of the things money represents... [spoiler]i havent read the image so i dont know the context[/spoiler]

Skullbone
Skullbone

@askme
cuck
retarded

Not an argument.

RavySnake
RavySnake

@Skullbone

I like how you're just gonna ignore the argument and focus on the wording now

TechHater
TechHater

@RavySnake
What argument? You didn't make an argument.

FastChef
FastChef

@iluvmen
Because Buffet could drop dead at literally any moment and when he does BRK is gonna crash.

Need_TLC
Need_TLC

GET OUT YOU FUCKING KEYNESIAN FAGGOT THIS IS Veeky Forums

Harmless_Venom
Harmless_Venom

@Bidwell
Then something is wrong and it will implode soon...

Sharpcharm
Sharpcharm

@whereismyname
Because there isn't any meaningful government spending, the Fed is shoveling money into the private sector praying that things will get better.

lostmypassword
lostmypassword

@iluvmen
Then why not just invest in Berkshire Hathaway?

Because the price of investing in Berkshire Hathaway already reflects the chance of success old Omaha has.

@RavySnake
You should name a flaw in the definition of artificial growth, if you actually want to argue here.

Nojokur
Nojokur

Keynes could be responsible in the next few years for the largest economic collapse the world has ever seen. Collapse of the western world-tier stuff.

If you guys fully understood and knew what the central banks of the world are really doing you'd all be sick to your stomachs.

The general idea is similar to an 18 year old's first forex account.

1) Place trade.
2) Trade isn't going well, Double down
3) Trade isn't going well, Double down again
4) Trade still isn't going well, Double down.
5) Trade finally went well, Made it all back.

They are literally martingale the global economy and there's only one possible course:

1) They keep doubling down and printing money to double down until the governments of the world are so in debt to the Central banks that they can't hope to ever payback. Bond prices crash, and governments go bankrupt.

Then one of two things will follow:

1) The Central banks were malicious actors all along, and they will literally enslave the governments of the world.

2) Central banks will 'restructure' (Cancel) the debt the governments have to the sound of trillions of dollars. Once this occurs, that's trillions of dollars out there that isn't backed by anything. Currency as a whole will almost instantly lose most of it's value and we'll be in a flash-hyperinflation like we've never seen before.

Bidwell
Bidwell

@Sharpcharm
there isn't any meaningful government spending
There is record government spending.

Inmate
Inmate

@Lunatick
if you didn't stop reading halfway through a sentence like a child, he explains the other things money is a symbol for

Lord_Tryzalot
Lord_Tryzalot

@RavySnake
Where is your argument??

Boy_vs_Girl
Boy_vs_Girl

@FastChef
Nope, it is already weighted in and they will just buy their own stock.

Because the price of investing in Berkshire Hathaway already reflects the chance of success old Omaha has.

Elaborate please

farquit
farquit

@Supergrass
Neither, both are overly idealistic in their dogma and have holes in their theories which they ignore because writing a prescription to remedy the holes would invariably force them to compromise on their dogma which itself would prove their dogma incorrect.

5mileys
5mileys

@whereismyname
That's a byproduct of free trade. Forcing competition between desperate and low paid foreign labor and higher paid domestic labor with a much better standard of living suppresses real wage growth of the higher paid labor, noting that wage growth is a precursor to inflation.

Techpill
Techpill

@Supergrass
Neither, they're both outdated.
Neokeynesian you cuck. Gimme them sick easy monetary policy gainzzz.

Methshot
Methshot

@Garbage Can Lid
hasn't peter schitt been predicting $US hyperinflation for like the last 5 years? Still ain't happening.

PackManBrainlure
PackManBrainlure

@Supergrass
All of them, in rotation.

except austrian

Sharpcharm
Sharpcharm

mfw a supporter of a fringe neokeysianism on steroids literally destroys an austrian cuck in a debate
How can austrian cuckonomics even compete?
https://www.youtube.com/watch?v=cUTLCDBONok

Snarelure
Snarelure

@MPmaster
can't bother to argument them all, so I'm just going to ask you regarding inflation column

if we're pumping so much money into the system through QE, why aren't we experiencing hyperinflation? The whole premise of Austrian Ecoonomics that increase in the supply of M1 fails in this scenario.

Skullbone
Skullbone

@Bidwell
you can have record government spending but if it's mostly funneled into the millitary the only thing you're gonna see is them stirring up some shit abroad.

By meaningful I think he meant investments into infrastructure though. Not an amerifat, but how is your public transportation in this regard?

Poker_Star
Poker_Star

@Nojokur
Or... government tells central banks to increase loan times. Central banks say ok. Status quo resumes

WebTool
WebTool

https://www.youtube.com/watch?v=GTQnarzmTOc

mfw Hayek is the real winner but everyone chooses Keynes anyway

CodeBuns
CodeBuns

@Supergrass
My school is right. Government should be the only bank in the economy.

massdebater
massdebater

not superior Chicago school

Sharpcharm
Sharpcharm

@Supergrass
It's quite obviously Austrian...

Keynesian caters more to human nature though, and creates a house of cards that generates more votes for the candidate. Keynesian is kinda like a heroin addiction. After a while you need more and more to get the same affect and then you gotta rehab for a few months and start all over.

Inmate
Inmate

@Supergrass
Neoclassical synthesis.

Fried_Sushi
Fried_Sushi

bump for importance

Harmless_Venom
Harmless_Venom

@Supergrass
Monetarism, faggot

Sir_Gallonhead
Sir_Gallonhead

@MPmaster
Monetarism:
-Milton Friedman
-Scott Sumner
-Lars Christensen

Boy_vs_Girl
Boy_vs_Girl

@Carnalpleasure

"The dollar will collapse 2012
"The dollar will collapse 2013"
"The dollar will collapse 2014"
"The dollar will collapse 2015"
"The dollar will collapse 2016"
dollar collapses 20xx
"Guys I predicted it!"

You have autism

5mileys
5mileys

Austrian economics is a fucking joke, no serious economist takes those guys seriously.

SniperWish
SniperWish

@Supergrass
Austrian Economics?
tfw when my little country has it's own shit.

Why is it named after austria?
Anyone care to explain please?

CodeBuns
CodeBuns

@SniperWish

lots of austrian jews invented it.

It's complete garbage, the reason why it's so popular on the internet is because it's popular among edgelord american libertarians, who are disproportionately represented on the net

Techpill
Techpill

@Boy_vs_Girl
This, its a fucking joke.

Snarelure
Snarelure

austrian is best.. anything else is commie nonsence

Raving_Cute
Raving_Cute

@Need_TLC
it's proven to work

works perfectly fine if what youre trying to do is ruin an economy

haveahappyday
haveahappyday

@Need_TLC
all pro economists choose
because there is money in it. the governments want it and they pay for it. because it let's them do what they want to do build bigger government print more money put a choke-hold on free market breed bureaucracy and corruption.

Boy_vs_Girl
Boy_vs_Girl

@haveahappyday
This

no goy, you can't learn anything
we're super genius investors from Ivy League schools. Our bonuses are justified
are you as rich as Warren?
no. So don't even try, you'll just lose money
buy and hold mutual funds and indeces
all you sheeple need to know
good goys

Playboyize
Playboyize

@Boy_vs_Girl
He still predicted it, he never mentioned a time frame

Deadlyinx
Deadlyinx

@5mileys
Can you explain why it is a fucking joke?

lostmypassword
lostmypassword

@MPmaster
The only valuable thing to take from Keynes is that supply generally follows demand. The tricky part is though that demand is a psychological state. The fact that people like having windows in their walls is a demand and the supply of windows will follow that. Even if a society has never heard of windows some bright person could imagine that they might like windows and thus supply the imaginary demand which then becomes real demand, and by doing so he makes society more wealthy (society gains windows) and in return the window maker gets wealth.

The trick this though is that you can't artificially create demand. People may not have realized they wanted windows before they had them but there is an upper limit to the number of windows they will ever desire and going about smashing their windows in order to create more need doesn't actually create wealth for society. That wealth that is wasted replacing windows could have been used for all manner of other things people already wanted or didn't know they wanted but now it's just going to the window maker for something they already had.

tl;dr: Demand is important to understand but foolish to try and manipulate.

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