Keynes vs Austrian economic school

What is the actual red pill?

Debt-free currency.

According to the most left-wing Keynesians, full employment might be always achievable through the right monetary policy. I find this topic fascinating, since that's was happened during the only ways when western economies had actual full employment.

The real red pill is non-intervention in all matters that aren't protection of property rights, safety net and national defense.

Worked great during the 1920s desu.

The Great Depression had its origins in the monetary policy followed by the Fed at the time, they inflated the banking system until it went bust. Just like it's happening atm.

Friedman > all

National works programs obviously work. But a fine balance must be struck so that economics and politics do not merge completely.

Some say it had been the unequal wealth distribution, that led the masses to consume by borrowing. All the while rich people we're looking for opportuinies to invest, eventually overspeculating.

Indeed just like it happened during the subprime mortgage crisis. And, indeed, low interest played a role, but there have been many high growth periods with low interest rates.

The goal of government-insured full employment has been abandoned after the stagflation of the 70s. And I think that it has indeed discredited itself. But how else do you navigate out of persistent mass unemployment?

>Keynes
Japan is literally Keynes utopia. Look at how great recession for over 2 decades and growing is.
>Austrian economic school
Pls, make this meme end. Austrian economic school was a great tool back in 19th century that helped to elevate Economics as a science to a whole now level. Present day "austrian economic school" is a meme, trying to push the idea that Economics is a philosophy(they are as cancerous, as Marxists). No, Economics is pure math, it's totally fine and it doesn't need "LOL JUST ABOLISH THE GUBMENT MARKET WILL FIX EVERYTHING"(because that's pretty much all modern aes arguments) bullshit.

>Kenyan economics

yikes

By using it everytime the long term debt cycle crashes (about every 70 years) and then removing it as the economy grows.

People must agree to a cycle of national works programs every time things get bad. It gets discredited after 20 or so years because the economy starts working again.

Bottom line, people need to have income and work.

Japan would've been in deep shit with any kind of economic policy, cause their new generation of consumers is scarce and poorly paid. Also, globalization.

That is a noble goal, but even the richest countries of the world are failing to provide decent income and work for everyone. In Germany, almost 25% of the jobs are in the dumping wage sector, in France over 10% unemployed, and I guess we don't need to talk about the US.

The actual redpill is realizing that modern economics isn't as polarized as you think. Mainstream economists have taken stuff that works from both Keynes and Austrian economists like Hayek.

I know. I've chosen a polarizing title to grab attention.

Misesian-Rothbardian-Hoppean economics.

>Japan would've been in deep shit with any kind of economic policy
Yeah, sure.

Red pill is no one that works in economics and state finance has any idea why markets work or how their policies will move the markets or why they do move the markets when they do it.

We can't get a national works program passed here in the states. House of Cards the TV show dramatizes what would likely happen if a president did get a national works program started. It would pretty soon be gutted. The fact is that people out of work are so invisible to the neo-liberal elites that not only do they not exist emotionally to the elites, but they also don't even seem to exist quantifiably. Our unemployment statistics for instance, parroted by even the most intelligent of the neo-liberal elites and their liberal media attack dogs, are off by about 10%. And that's not counting those who take on two shit jobs and even then cannot get by.

>What is the actual red pill

Marxism.

>"Free market capitalism"
Lel. Japan during that times was bordering on a plan economy, with restrictions to competition and a centralized banking sector.

As the Keynesian programmes started, Japan already was in a recession. It didn't cause it.

It sounds alluring, but I'm a (((Jewish))) (((refugee))) from the (((Soviet Union))), my whole family experienced Communism, and it's shit, even if you were upper middle class you didn't hold a candle to a German factory worker.

It's a religion.

I also can't believe that a nation with apparently under 5% unemployment feels attracted to both right-wing (Trump) and left-wing (Sanders) populism.

Nonetheless, I really doubt a government employment guarantee would be the panacea. There is no free lunch in economics. All that money spent will ultimately trickle back into Walmart and real estate owners' pocket, whilst government debt increases and inflation creeps.

Austrian is just as yikes

Public choice

Keynes is reliable and predictable. Mises trickle-down fails everywhere it's tried.

Keynes fuxked up during the stagflation years.

Austrian

>from the Soviet Union, my whole family experienced {{{Communism}}},

Fixed it for ya!