Keynesian Economics

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Here's a quick rundown

>>3078151

>When the economy is bad

Increase government spending and lower taxes to promote growth.

>When the economy is good

Decrease government spending and raise taxes to pay off debt

That's basically it.

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Government spends more in hard times to stimulate growth of the economy to get it back up on its feet, and similarly spends less in upswings to try to moderate the short term economic growth before the downswing hits. the faster the economy rises, the harder it plummets.

>>3078151
Basically the government should run like "an insurance company with an army" (Paul Krugman's words, not mine). During recessions, the government should run deficits, usually with some combination of tax cuts and spending increases (ideally on useful stuff like infrastructure, but some Keynesians will say ANY spending is good spending). When you're out of the recession, the government should return to a balanced budget. That's the short answer.

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Keynesian economics is what you have today. Massive government intervention that ruins the economy even further.

>>3078175
Is there a non-Keynesian economy that's actually successful?

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>>3078283

Austrian

oh

where is Austrian economics successful in?

>>3078158
>Decrease government spending and raise taxes to pay off debt
Who is the debt owed to? Not OP, btw.

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>>3078353
Every nation has debt, usually to world banks or to different nations.

>>3078354
>every nation has debt
then what are creditor nations?

>>3078175
>Great Depression
>implements the New Deal under Keynesian ideas
>suddenly 1950s America

>b-but my purely theoretical book says it made it worse because reasons!

really the only ideal that actually produced results

>>3078154
Holy fuck, this cannot be real.

>>3078362
>creditor nations
All eighteen of them?

>>3078362
nations that are owed more than they owe

doesn't mean they don't have debt

>>3078151
At its most most most basic. In times of great economic stress the government should create demand to stimulate the markets. Hopefully having the effect of becoming self sustaining.

>>3078298
The closest is probably Switzerland (some cantons), Hong Kong, Chile under Pinochet (heavily influenced by Milton Friedman, who was himself an advocate of Austrian Econ),

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>>3078365
>completely disregards the 40s

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>>3078175

I tried liking Austrian theory because I wanted to be a edge lord libertarian when I was young, but the whole thing about not using empirical and scientific evidence to prove itself right sort of the whole thing in for me.

>>3078158
This, ideally. Keynesianism might work pretty well if it were done properly, but it's a dead end politically because there's no incentive to do it right--the incentive to spend more in any economic circumstance for any reason always wins out.

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>>3078175
>Massive government intervention that ruins the economy even further.

HAHAHAHAHAHAHAHAHAHAHA

>>3078287
>Austrian economics calling Keynesian religion

Austrian philosophy is purely theoretical, even communism at least tried to put their bullshit to practice

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>>3078617

True. Austrian economics has never been tried.

Mostly because it admits there is no empirical evidence to tell if its working or not.

>>3078450
> Milton Friedman, who was himself an advocate of Austrian Econ
what the fuck?
friedman actively discouraged and bashed the business cycle http://economistsview.typepad.com/economistsview/2006/01/milton_friedman.html

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>>3078154
good shit

>>3078624
that just makes it sound even more like a religion

>>3078559
>that pic
And yet still more accurate than Keynes ever was.

>>3078175
Austrians (and marxists) claim a great crash is coming every single year. Also, your school is basically an internet meme for retards that read two blog posts and automatically get dunning kruger and become part of the sect.

>>3078450
Friedman economic models are basically keynesian models with adaptative expectations. He also said that he was "an enormous admirer of Hayek, but not for his economics. I think Prices and Production is a very flawed book. I think his [Pure Theory of Capital] is unreadable. On the other hand, The Road to Serfdom is one of the great books of our time."
And calling hong kong austrian is even more retarded. Just goes to show how much austrians know about economics.

What is worse, Austrian economics or MMT?

>>3079585
MMTers don't annoy anyone and haven't formed a sect. Yet at least.