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interestrateripoff

Keynes Vs Hayek: The Sequel

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Socialists like Keynes for the simple reason that the increased-government-spending-in-a-downturn bit is an excuse to piss lots of OPM up the wall to buy votes from their clients.

The government-saving-for-a-rainy-day-during-economic-expansions bit is less appealing, they just try to ignore that.

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quite. the point about keynes is that he still believed in balanced budgets - just balanced over the economic cycle, not balanced every year.

the problem is that politically saving for a rainy day or paying back the loan only happens under duress or by stealth.

the only solution I can see is to prevent governments running a deficit unless there are national savings to spend.

genius video BTW

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The Sequel

The Original

Not watched the second yet, but quite amusing.

Great - thanks for posting. Hayek seems to be right to me.

Is there a business cycle in the Austrian school?

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The only solution I can see is to prevent governments running a deficit unless there are national savings to spend.

How about adding up the figures at the end of each parliament, and then assigning any remaining debts personally to the members of the governing party. So Labour could "invest" at the start of each term, and pay back the loans with the profits (cough cough).

A parliament is not allowed to bind a following one in law, it should not be allowed to in finance.

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How about adding up the figures at the end of each parliament, and then assigning any remaining debts personally to the members of the governing party. So Labour could "invest" at the start of each term, and pay back the loans with the profits (cough cough).

A parliament is not allowed to bind a following one in law, it should not be allowed to in finance.

I quite a agree that any losses should be the responsibility of the sitting MP's of that govt. Imagine Blair, Brown, Balls etc... being evicted and there homes sold to repay the deficit.

Edited by interestrateripoff

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I quite a agree that any losses should be the responsibility of the sitting MP's of that govt. Imagine Blair, Brown, Balls etc... being evicted and there homes sold to repay the deficit.

It would certainly make "so what" Balls think twice about his argument that cutting the size of the state is bad for the economy.

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quite. the point about keynes is that he still believed in balanced budgets - just balanced over the economic cycle, not balanced every year

The problem is that the act of interfering in the market by govt distorts and amplifies the cycle, to the point where the numpties think they have abolished the cycle.then it crashes.

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The problem is that the act of interfering in the market by govt distorts and amplifies the cycle, to the point where the numpties think they have abolished the cycle.then it crashes.

true - I like the idea of making sure you are balanced over the course of a parliament.

I would also like to see things like a statutory limit on total spending increases (eg 3% per year),

a requirement that they can only run a deficit if the country has reserves and they can only increase expenditure if the country has reserves and a requirement that they acknowledge future pension obligations as debts, like a company has to.

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The problem is that the act of interfering in the market by govt distorts and amplifies the cycle, to the point where the numpties think they have abolished the cycle.then it crashes.

And if you don't you end up with too big to fail monopolies, which then wield political power and distorts and amplifies the cycle. Although if you do interfere you'll end up with too big to fail monopolies, which then wield political power and distorts and amplifies the cycle.

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  • 285 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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