WEBVTT

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I’m watchin’ you.


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Lord, Keynes, wow! It’s, it, it’s such an honor.

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Indeed, sir.

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Please, just go, just go right on through.

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[beeping alarm]

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woo, woo

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Identification, please.

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Hayek?

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No. Hayek, like high explosives.

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High explosives?

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Yeah.

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We have a 10-66, HQ I repeat, we have a 10-66.

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[Copy that, Mike. Proceed.]

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What is a 10-66? That was just an example of how to pronounce my name.

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Ladies and gentlemen.

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Members of the committee.

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We are here today to consider the impact

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of government spending on our economy.

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We’re fortunate to have two world-reknowned

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economists to offer their testimony on the matter.

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I see you took a detour down the road to serfdom.


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Talk about the end of laissez-faire.

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Well, shake it off, Freddie,

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I’m not pullin’ any punches in there.

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I’m ready. Are you?

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Prepare for the return of the master.

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John Maynard Keynes

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F. A. Hayek

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Round Two

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Round 2.0

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Same economists,

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same beliefs,

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new microphones,

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new mustaches.

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Here we are… Peace out! Great recession.

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Thanks to me, as you see, we’re not in a depression.

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Recovery, destiny, if you follow my lesson,

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Lord Keynes, here I come, line up for the procession.

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We brought out the shovels but we’re still in a ditch

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and still digging, don’t you think that it’s time for a switch

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from that hair of the dog? Friend, the party is over,

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the long run is here, it’s time to get sober!

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Are you kidding? My cure works perfectly fine.

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Have a look, the great recession ended back in ’09.

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I deserve credit. Things would have been worse.

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All the estimates prove it, I’ll quote chapter and verse.

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Econometricians, they’re ever so pious.

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Are they doing real science or confirming their bias?

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Their “Keynesian” models are tidy and neat,

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but that top down approach is a fatal conceit.

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Which way should we choose?

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More bottom up or more top down?

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The fight continues,

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Keynes and Hayek’s second round.

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It’s time to weigh in

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more from the top or from the ground.

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Let’s listen to the greats,

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Keynes and Hayek throwing down.

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We could have done better, had we only spent more,

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too bad that only happens when there’s a World War.

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You can carp all you want about stats and regression,

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do you deny World War II cut short the Depression?

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Wow. One data point and you’re jumping for joy,

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the last time I checked, wars only destroy.

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There was no multiplier, consumption just shrank

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as we used scarce resources for every new tank.

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Pretty perverse to call that prosperity,

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rationed meat, rationed butter, a life of austerity.

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When that war spending ended, your friends cried disaster,

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yet the economy thrived and grew faster.

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You too only see what you want to see,

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the spending on war clearly goosed GDP.

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Unemployment was over, almost down to zero,

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that’s why I’m the master, that’s why I’m the hero.

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Creating employment’s a straigtforward craft,

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when the nation’s at war, and there’s a draft.

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If every worker was staffed in the army and fleet

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we’d have full employment and nothing to eat.

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Which way should we choose?

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More bottom up or more top down?

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The fight continues,

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Keynes and Hayek’s second round.

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It’s time to weigh in

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more from the top or from the ground.

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Let’s listen to the greats,

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Keynes and Hayek throwing down.

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Jobs are the means, not the ends in themselves,

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people work to live better, to put food on the shelves.

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Real growth means production of what people demand,

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that’s entrepreneurship not your central plan.

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My solution is simple and easy to handle,

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it’s spending that matters, why’s that such a scandal?

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Money sloshes through the pipes and the sluices

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revitalizing the economy’s juices.

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It’s just like an engine that’s stalled and gone dark,

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to bring it to life, we need a quick spark.

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Spending’s the life blood that gets the flow going,

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where it goes doesn’t matter, just get spending flowing.

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You see slack in some sectors as a “general glut”,

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but some sectors are healthy, only some in a rut.

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So spending’s not free, that’s the heart of the matter,

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too much is wasted as cronies get fatter.

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The economy’s not a car, there’s no engine to stall,

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no expert can fix it, there’s no “it” at all.

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The economy’s us, we don’t need a mechanic,

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put away the wrenches, the economy’s organic.

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Which way should we choose?

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More bottom up or more top down?

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The fight continues,

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Keynes and Hayek’s second round.

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It’s time to weigh in

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more from the top or from the ground.

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Let’s listen to the greats,

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Keynes and Hayek throwing down.

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So what would you do to help those unemployed?

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This is the question you seem to avoid.

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When we’re in a mess, would you have us just wait,

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doing nothing until markets equilibrate?

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I don’t want to do nothing, there’s plenty to do,

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the question I ponder is who plans for whom?

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Do I plan for myself or leave it to you?

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I want plans by the many, not by the few.

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Let’s not repeat what created our troubles,

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I want real growth not a series of bubbles.

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Stop bailing out losers, let prices work,

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if we don’t try to steer them they won’t go berserk.

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Come on, are you kidding? Don’t Wall Street’s gyrations

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challenge your world view of self-regulation?

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Even you must admit that the lesson we’ve learned

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is more oversight’s needed or else we’ll get burned.

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Oversight? The government’s long been in bed

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with those Wall Street execs and the firms that they’ve led.

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Capitalism’s about profit and loss,

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you bail out the losers, there’s no end to the cost.

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The lesson I’ve learned? It’s how little we know,

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the world is complex, not some circular flow.

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The economy’s not a class you can master in college,

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to think otherwise is the pretense of knowledge.

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Which way should we choose?

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More bottom up or more top down?

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The fight continues,

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Keynes and Hayek’s second round.

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It’s time to weigh in

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more from the top or from the ground.

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Let’s listen to the greats,

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Keynes and Hayek throwing down.

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You get on your high horse and you’re off to the races,

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I look at the world on a case by case basis.

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When people are suffering I roll up my sleeves

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and do what I can to cure our disease.

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The future’s uncertain, our outlooks are frail,

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that’s why free markets are so prone to fail.

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In a volatile world we need more discretion,

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so state intervention can counter depression.

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People aren’t chessmen you move on a board

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at your whim – their dreams and desires ignored.

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With political incentives, discretion’s a joke,

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those dials you’re twisting, just mirrors and smoke.

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We need stable rules and real market prices

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so prosperity emerges and cuts short the crisis.

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Give us a chance so we can discover

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the most valuable ways to serve one another.

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Which way should we choose?

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More bottom up or more top down?

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The fight continues,

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Keynes and Hayek’s second round.

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It’s time to weigh in

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more from the top or from ground.

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Let’s listen to the greats,

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Keynes and Hayek throwing down.

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Which way should we choose?

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More bottom up or more top down?

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The fight continues,

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Keynes and Hayek’s second round.

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It’s time to weigh in

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more from the top or from ground.

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Let’s listen to the greats,

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Keynes and Hayek throwing down.