Economic arguments from generations ago play out before our eyes.  The original debate between Friedrich August von Hayek and John Maynard Keynes has shaped US economic policy for the last century.   Truly free markets…..or Government managed “Boom and Bust Cycles”.   The entire debate can be seen in this incredibly informative rap battle between Hayek and Keynes.  Get your smart on….

Politicians in Washington were quick to blame the free market that Hayek believed in for creating the boom and bust that has led to the recession that we are currently living in. People that supported Hayek’s theories were marginalized by the media and through political rhetoric for causing the housing bust and creating artificially low interest rates that could never be sustained. Very few inside of the government questioned the policies that led to the boom and eventually the bust that were spearheaded by Congress and the nation’s central bank, the Federal Reserve.  These Keynesian critics have also failed to provide evidence that this supposed “free market” system ever existed to begin with. Instead, the theories pushed by the acolytes of Keynes have been the dominant theory of economics followed by Washington, D.C. politicians and central planners since the Great Depression.

hayek vs keynes

The battle between Hayek and Keynes has been long and hard. Very few in government have ever paid any attention to the theories of Hayek, using the wisdom he left us with only as a scapegoat to increase government spending and marketplace regulations. But the battle continues all the same, and will never end, until the government realizes that centrally planning the marketplace only results in the misallocation of resources and the continued volatility that results from these government-created booms and busts.  Hayek Vs. Keynes The Century Long Battle of Ideas

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