Ask a Keynesian Anything

I think deficits are good and the U.S should run big deficits and debt is good for the economy. I like Paul Krugman. I love Keynes and am ready to debate the Austrian and Chicago school of economics

Other urls found in this thread:

youtube.com/watch?v=ROlDmux7Tk4
youtube.com/watch?v=GTQnarzmTOc
nytimes.com/2015/08/21/opinion/paul-krugman-debt-is-good-for-the-economy.html
twitter.com/SFWRedditImages

In order to fund "stimulus" the money has to come from somewhere. This is usually from issuing bonds. Which means private investors need to purchase those bonds to make the deficit funding available. Which means those private investors no longer have funds available for private investment.
Isn't "stimulus" spending exactly like trying to pull yourself up by your bootlaces?

You should go back and actually read Keynes. Because the first time through you clearly missed the point.

What do you have against windows?

Except the government spends the money. Whoever gets this newly spent money puts it in a bank account, that money is then used to buy more bonds

I read keynes, you clearly haven't

They're ok.

It depends what's the right strategy by a number of current factors. During the obama years the only way to stabilize was Keynesian theory. I think it was your Chicago uni which led a study to measure the factors and overwhelming the economists agreed it stopped the bleeding.

Disregard this guy, obviously isn't smart enough to add to the conversation. I'm assuming he's a Walmart conservative.

No. You didn't.

Yup, Walmart conservative spotted.

Keynes was just as political as he was economy. What he did make national debts possible long term. Note that they called it political economy back then

>Except the government spends the money. Whoever gets this newly spent money puts it in a bank account, that money is then used to buy more bonds
The government uses the money from bond sales to give to people to buy government bonds. So nothing actually happens.

Well isn't that what Keynesianism is all about? Running large deficits during certain times like during a great recession.

You guys are fucking horrible at this.

>DUDE JUST RUN EVERYTHING ON CREDIT LMAO

I rest my case.

Keynes prime directive was to keep the economy going in the world war 2 era... his theories are more political than they are fact. Sure, "animal spirits" is good, but really he was just a gangster of an economist willing to do gangster shit.... kinda like Helicopter Ben Bernake. Saying you might throw money out of helicopters, thats gangsta.

Printing more money doesn't mean we have more wealth, it's not renewable and will eat itself.

Yeah actually because public sector debt = private sector asset

What would you like to debate about?

this music video came out less than a month before the stock market crash of 2008.

youtube.com/watch?v=ROlDmux7Tk4

Why do Republicans talk about how important a balanced budget is and how important reducing the deficit is yet the national debt always GROWS under them? Also how come the only surplus on record in the past couple decades was under a Democratic president?

He was before that. He said WW2 was the solution to the economic depression. He was for stimulating an economy in a recession

And we rest our case; that you are a walmart conservative

>how to get dicked in the ass by corporate American lobbying: the post
It's to easy to dump the debt on the public. Literally just making tax payers assume all risk.

Republicans are bad, we know. Democratic governments have no intensive to be responsible with their budgets because it isn't their money.

If it creates more jobs and businesses it will create more wealth. And it's very renewable, all that has to happen is you just STOP printing money and deflation will bring the price back down.

Current deficits, if they are a problem, especially in the U.S

the last honest republican was Ross Perot and he wasn't even a Republican.

>said ww2 was the solution to the economic depression
again, Keynes always sees economy in terms of geo-politics.

hint: what you're saying is, Keynes theories failed if it wasn't for WW2

again, as much as I like Keynes, he's more a tool of the situation at that time. I don't want to get all illuminati and shit but yea basically that.

Because Democrats suck. Surpluses are bad for the economy

THat's not how it works.

His theories wouldn't have failed without world war 2. The economic environment of world war 2 could have been simulated with massive federal spending.

us was dipping back into recession and all the recovery plans had failed before we entered ww2 so tell me again how was Keynes a resounding genius?

Keynes was just the chosen man for that time, much like Ian Flemming got to write the most famous spy novels. They were probably all British secret society people, or the Royal Society at least. (Which Newton founded)

That's exactly how it works. Maybe you should actually watch and listen to the music video your OP picture is from.

no you all should watch THIS music video which like i said was posted less than a month before the 2008 wall street crash

youtube.com/watch?v=ROlDmux7Tk4

You don't need to print more money to have more wealth. Having more money thrown at the economy doesn't improve anything because that money isn't backed up by anything, and when the market corrects due to that realization, those jobs and businesses disappear. Another problem is that inflation tend to happen more than deflation, and exponential inflation is bad for people who want to save.

That video has almost nothing to do with macroeconomics.
We are talking about federal policy here. This is the video I'm reffering to.
youtube.com/watch?v=GTQnarzmTOc

perhaps, but the video i posted shows you the mindset of the MBA graduates working at goldman sachs and mckinsey, because those are the types of faggots who made that shit.

people usually act most retarded at the height of a bubble

Yeah. But you are mistaking the symptom for the cause. They are just people doing what's economically rational to them and getting drunk on success.
It's the boom you should fear, not the bust. It's the boom that sets you up for the bust.

When i was in high school my teacher showed us that video. He was a good teacher.

So what I see is Keynes literally btfoing hayek in a boxing match and with rap. And you never watched the first one which shows Hayek being cucked by alpha Keyes

It's a metaphor for government continuing to pick the losing strategy.
Hello entry level econ student, isn't it time for you to go to bed for class tomorrow?

I'm in highschool im not an econ student, and yes im 18 before you report me

>I'm in highschool
Trust me, I already knew that.

Are you a Jew?

Define Jewish. My grandfather on my dads side was Jewish so technically neither my dad or me is jewish but Sup Forumsacks would probably still consider me one.

How can something grow infinitely if it exist in a finite domain?

It can infinently grow in nominal dollars by printing more.

>big deficits and debt is good for economy

No serious modern keynesian would actually simplefy it that way, as they would sound like retards.

Also: OP is a retard

You're a fucking idiot

nytimes.com/2015/08/21/opinion/paul-krugman-debt-is-good-for-the-economy.html

>Debt is Good: Paul Krugman NY Times

i'm a econ prof at U of C and y'all are full of shit

Printing on what?
There is no infinite amounts of paper of raw materials to make infinite amounts of paper.

>unironically quoting Krugman

>I read keynes

Not even most professors in economy actually read his work in it's entirety. You only need his formulas.

>Whoever gets this newly spent money puts it in a bank account / buys more bonds


Bahahahaha

You're an absolute retard. Debt is bondage, you cunt. I hope you get God's wrath for encouraging others to follow your lies.

It can be digitally created

hahaha i laugh at your economic igornace

I hope you get cancer enjoy your ban

Are you actually so fucking retarded that you actually think politicians and central bankers will increase interest rates and reduce the money supply when times are good and the bubble needs to be popped? Are you so fucking naive, that you for all practical purposes, might as well have been born yesterday since you have not paid any fucking attention to what has been going on for fucking decades?

Multiple nations have literally be backed into the corner of insolvency because people like you are too fucking stupid to understand what you are fucking doing and promoting.

So yes, the answer is you are fucking retarded and naive, because you actually think keynes produced a functional economic theory instead of a hilariously impractical and inherently nonfunctional stupid idea. No leadership wants to be the idiot in charge when interest rates must be raised. Why don't you pick up watching sports instead of something mildly complicated like economics?

Defend fractional reserve banking and the federal reserve printing money to loan to the government effectively taxing the people via inflation to pay for programs that didn't have enough tax revenue to cover.

These are my 2 biggest gripes

The environment for digital currency requires a large amount of electrical energy and resources that are all finite.

ya, because it doesn't matter what to spend the money on or if you do it in a recession or if you use it for investment or consumption


Why not just dig a huge fucking hole, borrow money for an interest rate of 2000% per annum, throw the money in and set it on fire.

>economy saved

Keynesians caused the recession.

Digging a hole and then filling it back up isn't a net positive my friend. You don't force banks into subprime housing loans for... subhumans then wonder why everything goes to fucking hell.

Those people would of never gotten loans in a free market, the housing bubble would of never happened and if it did every instead of getting bailed out the banks upper management would be fucking lynched in the streets and all their assets taken.

The relationship between the banks and government is disgusting.

His only argument is that Krugman is a Keynesian. It's fucking hilarious.

He won't even respond to me. He's like a little babby.

...

Well, there is no just thing as "Keynesian" anymore, what he is talking about is neo-Keynesianism, old Keynesians or post-Keynesians would not think so. Latter sees private issuance of government debt as totally inconsequential, they could do it without paying interest on it. With neo-K it is assumed that economy is not at full capacity, and one mechanism is with transfer to people with greater propensity to consume

Why are you so fucking stupid?

What is your opinion on Post Keynesianism?

Well, i'm a keynesian myself and there definately is a certain truth to that. It's just the complete disregard for all the complex mathematical models and economic mechanisms that was developed in Keynes economic theory that makes me loose all hope in mankind.

Yes, reaching for higher spending is one of the goals of that model, but also to grow out of the debt, if necessary by cutting spendig, in times of a booming economy.

Then there is also the huuuuuuuuge model of demand orientated economics that derive from Keynesianism and often concludes that in a lot of situations lowering taxes is actually the way to go to secure the purchasing power wich is regularly let out by the advocates of government spending.

It's all so exhausting...