1
00:00:04,250 --> 00:00:07,427
I’m watchin’ you.


2
00:00:12,042 --> 00:00:15,395
Lord, Keynes, wow! It’s, it, it’s such an honor.

3
00:00:15,395 --> 00:00:16,974
Indeed, sir.

4
00:00:16,974 --> 00:00:19,761
Please, just go, just go right on through.

5
00:00:19,761 --> 00:00:22,548
[beeping alarm]

6
00:00:22,548 --> 00:00:25,335
woo, woo

7
00:00:25,658 --> 00:00:29,633
Identification, please.

8
00:00:32,864 --> 00:00:34,739
Hayek?

9
00:00:34,739 --> 00:00:38,310
No. Hayek, like high explosives.

10
00:00:39,448 --> 00:00:41,364
High explosives?

11
00:00:41,364 --> 00:00:42,489
Yeah.

12
00:00:42,489 --> 00:00:45,864
We have a 10-66, HQ I repeat, we have a 10-66.

13
00:00:45,864 --> 00:00:49,422
[Copy that, Mike. Proceed.]

14
00:00:49,422 --> 00:00:54,276
What is a 10-66? That was just an example of how to pronounce my name.

15
00:01:01,584 --> 00:01:03,063
Ladies and gentlemen.

16
00:01:03,063 --> 00:01:05,396
Members of the committee.

17
00:01:05,396 --> 00:01:07,730
We are here today to consider the impact

18
00:01:07,730 --> 00:01:10,771
of government spending on our economy.

19
00:01:10,771 --> 00:01:13,396
We’re fortunate to have two world-reknowned

20
00:01:13,396 --> 00:01:17,691
economists to offer their testimony on the matter.

21
00:01:18,460 --> 00:01:20,578
I see you took a detour down the road to serfdom.


22
00:01:20,578 --> 00:01:22,245
Talk about the end of laissez-faire.

23
00:01:22,245 --> 00:01:24,495
Well, shake it off, Freddie,

24
00:01:24,495 --> 00:01:26,448
I’m not pullin’ any punches in there.

25
00:01:26,448 --> 00:01:28,386
I’m ready. Are you?

26
00:01:29,355 --> 00:01:32,757
Prepare for the return of the master.

27
00:01:34,511 --> 00:01:36,804
John Maynard Keynes

28
00:01:36,804 --> 00:01:38,711
F. A. Hayek

29
00:01:38,711 --> 00:01:40,646
Round Two

30
00:01:40,984 --> 00:01:42,939
Round 2.0

31
00:01:43,708 --> 00:01:45,392
Same economists,

32
00:01:45,392 --> 00:01:46,924
same beliefs,

33
00:01:48,309 --> 00:01:50,359
new microphones,

34
00:01:50,359 --> 00:01:52,209
new mustaches.

35
00:01:54,101 --> 00:01:56,359
Here we are… Peace out! Great recession.

36
00:01:56,359 --> 00:01:59,067
Thanks to me, as you see, we’re not in a depression.

37
00:01:59,067 --> 00:02:01,417
Recovery, destiny, if you follow my lesson,

38
00:02:01,417 --> 00:02:04,067
Lord Keynes, here I come, line up for the procession.

39
00:02:04,067 --> 00:02:06,635
We brought out the shovels but we’re still in a ditch

40
00:02:06,635 --> 00:02:09,375
and still digging, don’t you think that it’s time for a switch

41
00:02:09,375 --> 00:02:12,075
from that hair of the dog? Friend, the party is over,

42
00:02:12,198 --> 00:02:14,516
the long run is here, it’s time to get sober!

43
00:02:14,516 --> 00:02:16,963
Are you kidding? My cure works perfectly fine.

44
00:02:16,963 --> 00:02:20,225
Have a look, the great recession ended back in ’09.

45
00:02:20,225 --> 00:02:22,689
I deserve credit. Things would have been worse.

46
00:02:22,689 --> 00:02:25,084
All the estimates prove it, I’ll quote chapter and verse.

47
00:02:25,084 --> 00:02:28,043
Econometricians, they’re ever so pious.

48
00:02:28,043 --> 00:02:30,766
Are they doing real science or confirming their bias?

49
00:02:30,766 --> 00:02:33,391
Their “Keynesian” models are tidy and neat,

50
00:02:33,391 --> 00:02:36,489
but that top down approach is a fatal conceit.

51
00:02:36,489 --> 00:02:39,637
Which way should we choose?

52
00:02:39,637 --> 00:02:42,114
More bottom up or more top down?

53
00:02:42,114 --> 00:02:44,406
The fight continues,

54
00:02:44,406 --> 00:02:47,573
Keynes and Hayek’s second round.

55
00:02:47,573 --> 00:02:50,114
It’s time to weigh in

56
00:02:50,114 --> 00:02:52,797
more from the top or from the ground.

57
00:02:52,797 --> 00:02:55,566
Let’s listen to the greats,

58
00:02:55,566 --> 00:02:57,521
Keynes and Hayek throwing down.

59
00:02:57,521 --> 00:02:59,903
We could have done better, had we only spent more,

60
00:02:59,903 --> 00:03:02,039
too bad that only happens when there’s a World War.

61
00:03:02,070 --> 00:03:04,885
You can carp all you want about stats and regression,

62
00:03:04,885 --> 00:03:07,777
do you deny World War II cut short the Depression?

63
00:03:07,777 --> 00:03:10,605
Wow. One data point and you’re jumping for joy,

64
00:03:10,605 --> 00:03:13,230
the last time I checked, wars only destroy.

65
00:03:13,230 --> 00:03:15,813
There was no multiplier, consumption just shrank

66
00:03:15,813 --> 00:03:18,132
as we used scarce resources for every new tank.

67
00:03:18,132 --> 00:03:21,063
Pretty perverse to call that prosperity,

68
00:03:21,063 --> 00:03:23,870
rationed meat, rationed butter, a life of austerity.

69
00:03:23,870 --> 00:03:27,052
When that war spending ended, your friends cried disaster,

70
00:03:27,052 --> 00:03:31,782
yet the economy thrived and grew faster.

71
00:03:34,458 --> 00:03:36,700
You too only see what you want to see,

72
00:03:36,700 --> 00:03:39,636
the spending on war clearly goosed GDP.

73
00:03:39,636 --> 00:03:42,267
Unemployment was over, almost down to zero,

74
00:03:42,267 --> 00:03:44,978
that’s why I’m the master, that’s why I’m the hero.

75
00:03:44,978 --> 00:03:47,761
Creating employment’s a straigtforward craft,

76
00:03:47,761 --> 00:03:50,469
when the nation’s at war, and there’s a draft.

77
00:03:50,469 --> 00:03:53,094
If every worker was staffed in the army and fleet

78
00:03:53,094 --> 00:03:57,497
we’d have full employment and nothing to eat.

79
00:04:01,943 --> 00:04:04,693
Which way should we choose?

80
00:04:04,693 --> 00:04:07,235
More bottom up or more top down?

81
00:04:07,235 --> 00:04:09,735
The fight continues,

82
00:04:09,735 --> 00:04:12,703
Keynes and Hayek’s second round.

83
00:04:12,703 --> 00:04:15,250
It’s time to weigh in

84
00:04:15,250 --> 00:04:18,043
more from the top or from the ground.

85
00:04:18,043 --> 00:04:20,792
Let’s listen to the greats,

86
00:04:20,792 --> 00:04:22,846
Keynes and Hayek throwing down.

87
00:04:22,846 --> 00:04:25,333
Jobs are the means, not the ends in themselves,

88
00:04:25,333 --> 00:04:27,974
people work to live better, to put food on the shelves.

89
00:04:27,974 --> 00:04:30,308
Real growth means production of what people demand,

90
00:04:30,308 --> 00:04:32,933
that’s entrepreneurship not your central plan.

91
00:04:32,933 --> 00:04:35,849
My solution is simple and easy to handle,

92
00:04:35,849 --> 00:04:38,558
it’s spending that matters, why’s that such a scandal?

93
00:04:38,558 --> 00:04:41,078
Money sloshes through the pipes and the sluices

94
00:04:41,078 --> 00:04:43,310
revitalizing the economy’s juices.

95
00:04:43,310 --> 00:04:45,851
It’s just like an engine that’s stalled and gone dark,

96
00:04:45,851 --> 00:04:48,532
to bring it to life, we need a quick spark.

97
00:04:48,532 --> 00:04:51,201
Spending’s the life blood that gets the flow going,

98
00:04:51,201 --> 00:04:54,114
where it goes doesn’t matter, just get spending flowing.

99
00:04:54,114 --> 00:04:57,115
You see slack in some sectors as a “general glut”,

100
00:04:57,115 --> 00:04:59,520
but some sectors are healthy, only some in a rut.

101
00:04:59,520 --> 00:05:02,301
So spending’s not free, that’s the heart of the matter,

102
00:05:02,301 --> 00:05:05,319
too much is wasted as cronies get fatter.

103
00:05:05,319 --> 00:05:08,059
The economy’s not a car, there’s no engine to stall,

104
00:05:08,059 --> 00:05:10,589
no expert can fix it, there’s no “it” at all.

105
00:05:10,589 --> 00:05:13,021
The economy’s us, we don’t need a mechanic,

106
00:05:13,021 --> 00:05:16,063
put away the wrenches, the economy’s organic.

107
00:05:16,063 --> 00:05:19,146
Which way should we choose?

108
00:05:19,146 --> 00:05:21,896
More bottom up or more top down?

109
00:05:21,896 --> 00:05:24,355
The fight continues,

110
00:05:24,355 --> 00:05:27,021
Keynes and Hayek’s second round.

111
00:05:27,021 --> 00:05:29,370
It’s time to weigh in

112
00:05:29,370 --> 00:05:32,245
more from the top or from the ground.

113
00:05:32,245 --> 00:05:34,870
Let’s listen to the greats,

114
00:05:34,870 --> 00:05:37,015
Keynes and Hayek throwing down.

115
00:05:37,015 --> 00:05:39,495
So what would you do to help those unemployed?

116
00:05:39,495 --> 00:05:42,053
This is the question you seem to avoid.

117
00:05:42,053 --> 00:05:44,654
When we’re in a mess, would you have us just wait,

118
00:05:44,654 --> 00:05:47,427
doing nothing until markets equilibrate?

119
00:05:47,427 --> 00:05:50,227
I don’t want to do nothing, there’s plenty to do,

120
00:05:50,227 --> 00:05:52,827
the question I ponder is who plans for whom?

121
00:05:52,827 --> 00:05:55,552
Do I plan for myself or leave it to you?

122
00:05:55,552 --> 00:05:58,419
I want plans by the many, not by the few.

123
00:05:58,419 --> 00:06:01,027
Let’s not repeat what created our troubles,

124
00:06:01,027 --> 00:06:03,693
I want real growth not a series of bubbles.

125
00:06:03,693 --> 00:06:06,027
Stop bailing out losers, let prices work,

126
00:06:06,027 --> 00:06:09,068
if we don’t try to steer them they won’t go berserk.

127
00:06:09,068 --> 00:06:11,652
Come on, are you kidding? Don’t Wall Street’s gyrations

128
00:06:11,652 --> 00:06:14,360
challenge your world view of self-regulation?

129
00:06:14,360 --> 00:06:16,833
Even you must admit that the lesson we’ve learned

130
00:06:16,833 --> 00:06:19,809
is more oversight’s needed or else we’ll get burned.

131
00:06:19,809 --> 00:06:22,042
Oversight? The government’s long been in bed

132
00:06:22,042 --> 00:06:25,057
with those Wall Street execs and the firms that they’ve led.

133
00:06:25,057 --> 00:06:27,417
Capitalism’s about profit and loss,

134
00:06:27,417 --> 00:06:30,292
you bail out the losers, there’s no end to the cost.

135
00:06:30,292 --> 00:06:32,974
The lesson I’ve learned? It’s how little we know,

136
00:06:32,974 --> 00:06:35,599
the world is complex, not some circular flow.

137
00:06:35,599 --> 00:06:38,385
The economy’s not a class you can master in college,

138
00:06:38,385 --> 00:06:41,496
to think otherwise is the pretense of knowledge.

139
00:06:41,496 --> 00:06:44,561
Which way should we choose?

140
00:06:44,561 --> 00:06:47,023
More bottom up or more top down?

141
00:06:47,023 --> 00:06:49,449
The fight continues,

142
00:06:49,449 --> 00:06:52,365
Keynes and Hayek’s second round.

143
00:06:52,365 --> 00:06:54,449
It’s time to weigh in

144
00:06:54,449 --> 00:06:57,615
more from the top or from the ground.

145
00:06:57,615 --> 00:07:00,282
Let’s listen to the greats,

146
00:07:00,282 --> 00:07:01,765
Keynes and Hayek throwing down.

147
00:07:01,765 --> 00:07:04,902
You get on your high horse and you’re off to the races,

148
00:07:04,902 --> 00:07:07,589
I look at the world on a case by case basis.

149
00:07:07,589 --> 00:07:10,150
When people are suffering I roll up my sleeves

150
00:07:10,150 --> 00:07:12,797
and do what I can to cure our disease.

151
00:07:12,797 --> 00:07:15,304
The future’s uncertain, our outlooks are frail,

152
00:07:15,304 --> 00:07:18,091
that’s why free markets are so prone to fail.

153
00:07:18,091 --> 00:07:20,730
In a volatile world we need more discretion,

154
00:07:20,730 --> 00:07:23,771
so state intervention can counter depression.

155
00:07:23,771 --> 00:07:26,146
People aren’t chessmen you move on a board

156
00:07:26,146 --> 00:07:28,896
at your whim – their dreams and desires ignored.

157
00:07:28,896 --> 00:07:31,521
With political incentives, discretion’s a joke,

158
00:07:31,521 --> 00:07:33,996
those dials you’re twisting, just mirrors and smoke.

159
00:07:33,996 --> 00:07:36,621
We need stable rules and real market prices

160
00:07:36,621 --> 00:07:39,579
so prosperity emerges and cuts short the crisis.

161
00:07:39,579 --> 00:07:42,037
Give us a chance so we can discover

162
00:07:42,037 --> 00:07:45,037
the most valuable ways to serve one another.

163
00:07:48,160 --> 00:07:50,719
Which way should we choose?

164
00:07:50,719 --> 00:07:53,552
More bottom up or more top down?

165
00:07:53,552 --> 00:07:55,969
The fight continues,

166
00:07:55,969 --> 00:07:58,761
Keynes and Hayek’s second round.

167
00:07:58,761 --> 00:08:01,466
It’s time to weigh in

168
00:08:01,466 --> 00:08:04,469
more from the top or from ground.

169
00:08:04,469 --> 00:08:06,643
Let’s listen to the greats,

170
00:08:06,643 --> 00:08:11,266
Keynes and Hayek throwing down.

171
00:08:20,513 --> 00:08:23,384
Which way should we choose?

172
00:08:23,384 --> 00:08:25,989
More bottom up or more top down?

173
00:08:25,989 --> 00:08:28,416
The fight continues,

174
00:08:29,001 --> 00:08:30,868
Keynes and Hayek’s second round.

175
00:08:30,868 --> 00:08:34,209
It’s time to weigh in

176
00:08:34,209 --> 00:08:37,224
more from the top or from ground.

177
00:08:37,224 --> 00:08:39,474
Let’s listen to the greats,

178
00:08:39,474 --> 00:08:43,025
Keynes and Hayek throwing down.