0:00:04.250,0:00:07.427
I’m watchin’ you.

0:00:12.042,0:00:15.395
Lord, Keynes, wow! It’s, it, it’s such an honor.

0:00:15.395,0:00:16.974
Indeed, sir.

0:00:16.974,0:00:20.945
Please, just go, just go right on through.

0:00:23.391,0:00:25.335
woo, woo

0:00:25.658,0:00:29.633
Identification, please.

0:00:32.864,0:00:34.739
Hayek?

0:00:34.739,0:00:38.310
No. Hayek, like high explosives.

0:00:39.448,0:00:41.364
High explosives?

0:00:41.364,0:00:42.489
Yeah.

0:00:42.489,0:00:45.864
We have a 10-66, HQ I repeat, we have a 10-66.

0:00:45.864,0:00:49.422
[Copy that, Mike. Proceed.]

0:00:49.422,0:00:54.276
What is a 10-66? That was just an example of how to pronounce my name.

0:01:01.584,0:01:03.063
Ladies and gentlemen.

0:01:03.063,0:01:05.396
Members of the committee.

0:01:05.396,0:01:07.730
We are here today to consider the impact

0:01:07.730,0:01:10.771
of government spending on our economy.

0:01:10.771,0:01:13.396
We’re fortunate to have two world-reknowned

0:01:13.396,0:01:17.691
economists to offer their testimony on the matter.

0:01:18.460,0:01:20.578
I see you took a detour down the road to serfdom.

0:01:20.578,0:01:22.245
Talk about the end of laissez-faire.

0:01:22.245,0:01:24.495
Well, shake it off, Freddie,

0:01:24.495,0:01:26.448
I’m not pullin’ any punches in there.

0:01:26.448,0:01:28.386
I’m ready. Are you?

0:01:29.355,0:01:32.757
Prepare for the return of the master.

0:01:34.511,0:01:36.804
John Maynard Keynes

0:01:36.804,0:01:38.711
F. A. Hayek

0:01:38.711,0:01:40.646
Round Two

0:01:40.984,0:01:42.939
Round 2.0

0:01:43.708,0:01:45.392
Same economists,

0:01:45.392,0:01:46.924
same believes,

0:01:48.309,0:01:50.359
new microphones,

0:01:50.359,0:01:52.209
new moustaches.

0:01:54.101,0:01:56.359
Here we are… Peace out! Great recession.

0:01:56.359,0:01:59.067
Thanks to me, as you see, we’re not in a depression.

0:01:59.067,0:02:01.417
Recovery, destiny, if you follow my lesson,

0:02:01.417,0:02:04.067
Lord Keynes, here I come, line up for the procession.

0:02:04.067,0:02:06.635
We brought out the shovels but we’re still in a ditch

0:02:06.635,0:02:09.375
and still digging, don’t you think that it’s time for a switch

0:02:09.375,0:02:12.075
from that hair of the dog? Friend, the party is over,

0:02:12.198,0:02:14.516
the long run is here, it’s time to get sober!

0:02:14.516,0:02:16.963
Are you kidding? My cure works perfectly fine.

0:02:16.963,0:02:20.225
Have a look, the great recession ended back in ’09.

0:02:20.225,0:02:22.689
I deserve credit. Things would have been worse.

0:02:22.689,0:02:25.084
All the estimates prove it, I’ll quote chapter and verse.

0:02:25.084,0:02:28.043
Econometricians, they’re ever so pious.

0:02:28.043,0:02:30.766
Are they doing real science or confirming their bias?

0:02:30.766,0:02:33.391
Their “Keynesian” models are tidy and neat,

0:02:33.391,0:02:36.489
but that top down approach is a fatal conceit.

0:02:36.489,0:02:39.637
Which way should we choose?

0:02:39.637,0:02:42.114
More bottom up or more top down?

0:02:42.114,0:02:44.406
The fight continues,

0:02:44.406,0:02:47.573
Keynes and Hayek’s second round.

0:02:47.573,0:02:50.114
It’s time to weigh in

0:02:50.114,0:02:52.797
more from the top or from the ground.

0:02:52.797,0:02:55.566
Let’s listen to the greats,

0:02:55.566,0:02:57.521
Keynes and Hayek throwing down.

0:02:57.521,0:02:59.903
We could have done better, had we only spent more,

0:02:59.903,0:03:02.039
too bad that only happens when there’s a World War.

0:03:02.070,0:03:04.885
You can carp all you want about stats and regression,

0:03:04.885,0:03:07.777
do you deny World War II cut short the Depression?

0:03:07.777,0:03:10.605
Wow. One data point and you’re jumping for joy,

0:03:10.605,0:03:13.230
the last time I checked, wars only destroy.

0:03:13.230,0:03:15.813
There was no multiplier, consumption just shrank

0:03:15.813,0:03:18.132
as we used scarce resources for every new tank.

0:03:18.132,0:03:21.063
Pretty perverse to call that prosperity,

0:03:21.063,0:03:23.870
rationed meat, rationed butter, a life of austerity.

0:03:23.870,0:03:27.052
When that war spending ended, your friends cried disaster,

0:03:27.052,0:03:31.782
yet the economy thrived and grew faster.

0:03:34.458,0:03:36.700
You too only see what you want to see,

0:03:36.700,0:03:39.636
the spending on war clearly goosed GDP.

0:03:39.636,0:03:42.267
Unemployment was over, almost down to zero,

0:03:42.267,0:03:44.978
that’s why I’m the master, that’s why I’m the hero.

0:03:44.978,0:03:47.761
Creating employment’s a straigtforward craft,

0:03:47.761,0:03:50.469
when the nation’s at war, and there’s a draft.

0:03:50.469,0:03:53.094
If every worker was staffed in the army and fleet

0:03:53.094,0:03:57.497
we’d have full employment and nothing to eat.

0:04:01.943,0:04:04.693
Which way should we choose?

0:04:04.693,0:04:07.235
More bottom up or more top down?

0:04:07.235,0:04:09.735
The fight continues,

0:04:09.735,0:04:12.703
Keynes and Hayek’s second round.

0:04:12.703,0:04:15.250
It’s time to weigh in

0:04:15.250,0:04:18.043
more from the top or from the ground.

0:04:18.043,0:04:20.792
Let’s listen to the greats,

0:04:20.792,0:04:22.846
Keynes and Hayek throwing down.

0:04:22.846,0:04:25.333
Jobs are the means, not the ends in themselves,

0:04:25.333,0:04:27.974
people work to live better, to put food on the shelves.

0:04:27.974,0:04:30.308
Real growth means production of what people demand,

0:04:30.308,0:04:32.933
that’s entrepreneurship not your central plan.

0:04:32.933,0:04:35.849
My solution is simple and easy to handle,

0:04:35.849,0:04:38.558
it’s spending that matters, why’s that such a scandal?

0:04:38.558,0:04:41.078
Money sloshes through the pipes and the sluices

0:04:41.078,0:04:43.310
revitalizing the economy’s juices.

0:04:43.310,0:04:45.851
It’s just like an engine that’s stalled and gone dark,

0:04:45.851,0:04:48.532
to bring it to life, we need a quick spark.

0:04:48.532,0:04:51.201
Spending’s the life blood that gets the flow going,

0:04:51.201,0:04:54.114
where it goes doesn’t matter, just get spending flowing.

0:04:54.114,0:04:57.115
You see slack in some sectors as a “general glut”,

0:04:57.115,0:04:59.520
but some sectors are healthy, only some in a rut.

0:04:59.520,0:05:02.301
So spending’s not free, that’s the heart of the matter,

0:05:02.301,0:05:05.319
too much is wasted as cronies get fatter.

0:05:05.319,0:05:08.059
The economy’s not a car, there’s no engine to stall,

0:05:08.059,0:05:10.589
no expert can fix it, there’s no “it” at all.

0:05:10.589,0:05:13.021
The economy’s us, we don’t need a mechanic,

0:05:13.021,0:05:16.063
put away the wrenches, the economy’s organic.

0:05:16.063,0:05:19.146
Which way should we choose?

0:05:19.146,0:05:21.896
More bottom up or more top down?

0:05:21.896,0:05:24.355
The fight continues,

0:05:24.355,0:05:27.021
Keynes and Hayek’s second round.

0:05:27.021,0:05:29.370
It’s time to weigh in

0:05:29.370,0:05:32.245
more from the top or from the ground.

0:05:32.245,0:05:34.870
Let’s listen to the greats,

0:05:34.870,0:05:37.015
Keynes and Hayek throwing down.

0:05:37.015,0:05:39.495
So what would you do to help those unemployed?

0:05:39.495,0:05:42.053
This is the question you seem to avoid.

0:05:42.053,0:05:44.654
When we’re in a mess, would you have us just wait,

0:05:44.654,0:05:47.427
doing nothing until markets equilibrate?

0:05:47.427,0:05:50.227
I don’t want to do nothing, there’s plenty to do,

0:05:50.227,0:05:52.827
the question I ponder is who plans for whom?

0:05:52.827,0:05:55.552
Do I plan for myself or leave it to you?

0:05:55.552,0:05:58.419
I want plans by the many, not by the few.

0:05:58.419,0:06:01.027
Let’s not repeat what created our troubles,

0:06:01.027,0:06:03.693
I want real growth not a series of bubbles.

0:06:03.693,0:06:06.027
Stop bailing out losers, let prices work,

0:06:06.027,0:06:09.068
if we don’t try to steer them they won’t go berserk.

0:06:09.068,0:06:11.652
Come on, are you kidding? Don’t Wall Street’s gyrations

0:06:11.652,0:06:14.360
challenge your world view of self-regulation?

0:06:14.360,0:06:16.833
Even you must admit that the lesson we’ve learned

0:06:16.833,0:06:19.809
is more oversight’s needed or else we’ll get burned.

0:06:19.809,0:06:22.042
Oversight? The government’s long been in bed

0:06:22.042,0:06:25.057
with those Wall Street execs and the firms that they’ve led.

0:06:25.057,0:06:27.417
Capitalism’s about profit and loss,

0:06:27.417,0:06:30.292
you bail out the losers, there’s no end to the cost.

0:06:30.292,0:06:32.974
The lesson I’ve learned? It’s how little we know,

0:06:32.974,0:06:35.599
the world is complex, not some circular flow.

0:06:35.599,0:06:38.385
The economy’s not a class you can master in college,

0:06:38.385,0:06:41.496
to think otherwise is the pretense of knowledge.

0:06:41.496,0:06:44.561
Which way should we choose?

0:06:44.561,0:06:47.023
More bottom up or more top down?

0:06:47.023,0:06:49.449
The fight continues,

0:06:49.449,0:06:52.365
Keynes and Hayek’s second round.

0:06:52.365,0:06:54.449
It’s time to weigh in

0:06:54.449,0:06:57.615
more from the top or from the ground.

0:06:57.615,0:07:00.282
Let’s listen to the greats,

0:07:00.282,0:07:01.765
Keynes and Hayek throwing down.

0:07:01.765,0:07:04.902
You get on your high horse and you’re off to the races,

0:07:04.902,0:07:07.589
I look at the world on a case by case basis.

0:07:07.589,0:07:10.150
When people are suffering I roll up my sleeves

0:07:10.150,0:07:12.797
and do what I can to cure our disease.

0:07:12.797,0:07:15.304
The future’s uncertain, our outlooks are frail,

0:07:15.304,0:07:18.091
that’s why free markets are so prone to fail.

0:07:18.091,0:07:20.730
In a volatile world we need more discretion,

0:07:20.730,0:07:23.771
so state intervention can counter depression.

0:07:23.771,0:07:26.146
People aren’t chessmen you move on a board

0:07:26.146,0:07:28.896
at your whim – their dreams and desires ignored.

0:07:28.896,0:07:31.521
With political incentives, discretion’s a joke,

0:07:31.521,0:07:33.996
those dials you’re twisting, just mirrors and smoke.

0:07:33.996,0:07:36.621
We need stable rules and real market prices

0:07:36.621,0:07:39.579
so prosperity emerges and cuts short the crisis.

0:07:39.579,0:07:42.037
Give us a chance so we can discover

0:07:42.037,0:07:45.037
the most valuable ways to serve one another.

0:07:48.160,0:07:50.719
Which way should we choose?

0:07:50.719,0:07:53.552
More bottom up or more top down?

0:07:53.552,0:07:55.969
The fight continues,

0:07:55.969,0:07:58.761
Keynes and Hayek’s second round.

0:07:58.761,0:08:01.466
It’s time to weigh in

0:08:01.466,0:08:04.469
more from the top or from ground.

0:08:04.469,0:08:06.643
Let’s listen to the greats,

0:08:06.643,0:08:11.266
Keynes and Hayek throwing down.

0:08:20.513,0:08:23.384
Which way should we choose?

0:08:23.384,0:08:25.989
More bottom up or more top down?

0:08:25.989,0:08:28.416
The fight continues,

0:08:29.001,0:08:30.868
Keynes and Hayek’s second round.

0:08:30.868,0:08:34.209
It’s time to weigh in

0:08:34.209,0:08:37.224
more from the top or from ground.

0:08:37.224,0:08:39.474
Let’s listen to the greats,

0:08:39.474,0:08:43.025
Keynes and Hayek throwing down.