ECONOMICS: Introducing Hayek and Keynes – With Booty, Booze, and Raps

John Papola and Russ Roberts, creators of econstories.tv, have produced an informational (and rather entertaining) video entitled “Fear the Boom and Bust”. This video illustrates the differences between the philosophies of John Maynard Keynes and F.A. Hayek, but they do it with a twist: econstories.tv uses entertainment as a forum to introduce the differences of two economic philosophers that greatly influence economic policy and theory.

To give an example of how these theories are used in our day and age, the popular Paul Krugman, a prolific columnist for the New York Times, often cites Keynesian theory in his columns on economic and political policy. Also, my own professors have shared their opinions on the goods and bads of Keynesian economics. However, they often neglect to discuss alternative economic theories, such as those of an opposing economic philosopher, F.A. Hayek. 

Hayek, a highly influential twentieth-century economist, proved to be a worthy adversary to the more famous Keynes.  His revolutionary ideas about the coordination of peoples actions within an economy, fearing the boom, and research on economic policy engaged Keynes’ ideas, and these disparate theories forced their way onto the worldwide stage of economic debate. Because of this lively discussion, many economists integrated Hayek’s ideas into their own theories.

John M. Keynes made the claim that “We are all dead in the end”.  Although this is irrefutably true and may seem overly simplistic, I disagree that the consequences of our economic decisions die with us.  The decisions we make today will shape the economic landscape for generations. But, whether you claim the title of Keynesian or not, one thing is clear, booty, booze, and raps make economic theory and education an enjoyable experience.

Cheers!

Alex Grimnes