{"id":3072,"date":"2010-01-26T20:38:15","date_gmt":"2010-01-27T01:38:15","guid":{"rendered":"http:\/\/onthe8spot.com\/?p=3072"},"modified":"2010-01-26T20:38:15","modified_gmt":"2010-01-27T01:38:15","slug":"elink-video-fear-the-boom-and-bust-a-hayek-vs-keynes-rap-anthem","status":"publish","type":"post","link":"http:\/\/onthe8spot.com\/index.php\/2010\/01\/26\/elink-video-fear-the-boom-and-bust-a-hayek-vs-keynes-rap-anthem\/","title":{"rendered":"Elink Video:: "Fear the Boom and Bust" a Hayek vs. Keynes Rap Anthem"},"content":{"rendered":"

<\/object><\/p>\n
\n
\n
\nWe\u2019ve been going back and forth for a century
\n[Keynes] I want to steer markets,
\n[Hayek] I want them set free
\nThere\u2019s a boom and bust cycle and good reason to fear it
\n[Hayek] Blame low interest rates.
\n[Keynes] No\u2026 it\u2019s the animal spirits
\n[Keynes Sings:]
\nJohn Maynard Keynes, wrote the book on modern macro
\nThe man you need when the economy\u2019s off track, [whoa]
\nDepression, recession now your question\u2019s in session
\nHave a seat and I\u2019ll school you in one simple lesson
\nBOOM, 1929 the big crash
\nWe didn\u2019t bounce back\u2014economy\u2019s in the trash
\nPersistent unemployment, the result of sticky wages
\nWaiting for recovery? Seriously? That\u2019s outrageous!
\nI had a real plan any fool can understand
\nThe advice, real simple\u2014boost aggregate demand!
\nC, I, G, all together gets to Y
\nMake sure the total\u2019s growing, watch the economy fly
\nWe\u2019ve been going back and forth for a century
\n[Keynes] I want to steer markets,
\n[Hayek] I want them set free
\nThere\u2019s a boom and bust cycle and good reason to fear it
\n[Hayek] Blame low interest rates.
\n[Keynes] No\u2026 it\u2019s the animal spirits
\nYou see it\u2019s all about spending, hear the register cha-ching
\nCircular flow, the dough is everything
\nSo if that flow is getting low, doesn\u2019t matter the reason
\nWe need more government spending, now it\u2019s stimulus season
\nSo forget about saving, get it straight out of your head
\nLike I said, in the long run\u2014we\u2019re all dead
\nSavings is destruction, that\u2019s the paradox of thrift
\nDon\u2019t keep money in your pocket, or that growth will never lift\u2026
\nbecause\u2026
\nBusiness is driven by the animal spirits
\nThe bull and the bear, and there\u2019s reason to fear its
\nEffects on capital investment, income and growth
\nThat\u2019s why the state should fill the gap with stimulus both\u2026
\nThe monetary and the fiscal, they\u2019re equally correct
\nPublic works, digging ditches, war has the same effect
\nEven a broken window helps the glass man have some wealth
\nThe multiplier driving higher the economy\u2019s health
\nAnd if the Central Bank\u2019s interest rate policy tanks
\nA liquidity trap, that new money\u2019s stuck in the banks!
\nDeficits could be the cure, you been looking for
\nLet the spending soar, now that you know the score
\nMy General Theory\u2019s made quite an impression
\n[a revolution] I transformed the econ profession
\nYou know me, modesty, still I\u2019m taking a bow
\nSay it loud, say it proud, we\u2019re all Keynesians now
\nWe\u2019ve been goin\u2019 back n forth for a century
\n[Keynes] I want to steer markets,
\n[Hayek] I want them set free
\nThere\u2019s a boom and bust cycle and good reason to fear it
\n[Keynes] I made my case, Freddie H
\nListen up , Can you hear it?
\nHayek sings:
\nI\u2019ll begin in broad strokes, just like my friend Keynes
\nHis theory conceals the mechanics of change,
\nThat simple equation, too much aggregation
\nIgnores human action and motivation
\nAnd yet it continues as a justification
\nFor bailouts and payoffs by pols with machinations
\nYou provide them with cover to sell us a free lunch
\nThen all that we\u2019re left with is debt, and a bunch
\nIf you\u2019re living high on that cheap credit hog
\nDon\u2019t look for cure from the hair of the dog
\nReal savings come first if you want to invest
\nThe market coordinates time with interest
\nYour focus on spending is pushing on thread
\nIn the long run, my friend, it\u2019s your theory that\u2019s dead
\nSo sorry there, buddy, if that sounds like invective
\nPrepared to get schooled in my Austrian perspective
\nWe\u2019ve been going back and forth for a century
\n[Keynes] I want to steer markets,
\n[Hayek] I want them set free
\nThere\u2019s a boom and bust cycle and good reason to fear it
\n[Hayek] Blame low interest rates.
\n[Keynes] No\u2026 it\u2019s the animal spirits
\nThe place you should study isn\u2019t the bust
\nIt\u2019s the boom that should make you feel leery, that\u2019s the thrust
\nOf my theory, the capital structure is key.
\nMalinvestments wreck the economy
\nThe boom gets started with an expansion of credit
\nThe Fed sets rates low, are you starting to get it?
\nThat new money is confused for real loanable funds
\nBut it\u2019s just inflation that\u2019s driving the ones
\nWho invest in new projects like housing construction
\nThe boom plants the seeds for its future destruction
\nThe savings aren\u2019t real, consumption\u2019s up too
\nAnd the grasping for resources reveals there\u2019s too few
\nSo the boom turns to bust as the interest rates rise
\nWith the costs of production, price signals were lies
\nThe boom was a binge that\u2019s a matter of fact
\nNow its devalued capital that makes up the slack.
\nWhether it\u2019s the late twenties or two thousand and five
\nBooming bad investments, seems like they\u2019d thrive
\nYou must save to invest, don\u2019t use the printing press
\nOr a bust will surely follow, an economy depressed
\nYour so-called \u201cstimulus\u201d will make things even worse
\nIt\u2019s just more of the same, more incentives perversed
\nAnd that credit crunch ain\u2019t a liquidity trap
\nJust a broke banking system, I\u2019m done, that\u2019s a wrap.
\nWe\u2019ve been goin\u2019 back n forth for a century
\n[Keynes] I want to steer markets,
\n[Hayek] I want them set free
\nThere\u2019s a boom and bust cycle and good reason to fear it
\n[Hayek] Blame low interest rates.
\n[Keynes] No it\u2019s the animal spirits
\n\u201cThe ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.\u201d
\nJohn Maynard Keynes
\nThe General Theory of Employment, Interest and Money
\n\u201cThe curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.\u201d
\nF A Hayek
\nThe Fatal Conceit
\nfrom here<\/a> : http:\/\/www.econstories.tv\/home.html\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

We\u2019ve been going back and forth for a century [Keynes] I want to steer markets, [Hayek] I want them set free There\u2019s a boom and bust cycle and good reason to fear it [Hayek] Blame low interest rates. [Keynes] No\u2026 it\u2019s the animal spirits [Keynes Sings:] John Maynard Keynes, wrote the book on modern macro … <\/p>\n

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