Posts Tagged John Maynard Keynes

The Greatest Collection of Economic Holiday Hits Ever Aggregated

“The only one with the power to create presents out of thin air is Santa himself.”

Or, if you prefer an even more sobering realization, there’s always the Creator himself.

Check out this new video from the brilliant folks at EconStories.tv:

From the EconStories.tv website:

Recovery and growth in the classical and Austrian view is driven by restructuring production so that entrepreneurs discover again the best — i.e. the most valuable and sustainable — ways to serve customers. That process is lead by new entrepreneurs and driven by savers who make capital available to fund new investments and new ventures. Sustainable saving and investment means creating more value for others while using fewer resources. This process lies at the core of healthy economic growth, including better job opportunities and Read the rest of this entry »

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The New Holy Wars: Economic Religion vs. Environmental Religion

The New Holy Wars by Robert H. NelsonWe have all argued or debated with someone who resists facts and resorts to emotional or idealistic rhetoric. Conversely, we have all found ourselves in positions where we want to ignore the real-world implications of our beliefs for the sake of some perceived justice or goodness.

Whether we’re talking about the foods we eat, the medicines we take, or the public policies we support, we all have a tendency to get religious about the material.

For Robert H. Nelson, author of The New Holy Wars: Economic Religion vs. Environmental Religion in Contemporary America, these examples represent various forms of secular religion. If you look close enough into somebody’s core ideology, Nelson argues, you will surely find parallels to the holy books, priesthoods, and dogmas typically found in “regular” religions.

Nelson acknowledges that there are plenty of competing secular religions in the public sphere; however, he believes that two religions in particular have engaged in what is now the most prominent conflict in American society — namely, economic religion and environmental religion.

But why these religions, and why now?

Nelson argues that both religions emerged during the nineteenth century as a result of the Industrial Revolution. During this time, technological innovation boomed, living standards soared, and access to education expanded.

As Nelson explains:

For the first time ever, one of earth’s creatures — human beings — had literally acquired the capacity to remake ‘the creation’…Astonishingly enough, human beings had now acquired knowledge and powers previously reserved for God.

In other words, the dream of creating heaven on earth was suddenly realistic for those who thought such a feat was actually attainable or desirable. Over time, Nelson argues, the successes of the Industrial Revolution resulted in the emergence of two factions — one that “exalted human control over Read the rest of this entry »

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Artificial Wealth: King Solomon on the Stimulus

King Solomon

Is King Solomon at odds with John Maynard Keynes?

I usually try to keep my political perspective out of my Scripture reading, but as I was reading Proverb 13:11 last night, I couldn’t help but think of the stimulus:

Wealth [not earned but] won in haste or unjustly or from the production of things for vain or detrimental use [such riches] will dwindle away, but he who gathers little by little will increase [his riches].

This would apply to plenty of other get-rich-quick-schemes, but our country seems to have bought into the faulty Keynesian notion that the government can cure bad decision-making by centralizing it.

In short, the government’s attempts to “create” wealth amount to what Solomon calls “wealth won in haste.” Governments are certainly capable of using some funds wisely, but this is rarely the case. Plenty of Keynesians would say this is primarily about stabilization, but even if that’s true, what are we trying to stabilize?

In the end, ours is a system that is overspent and spoiled.

Basically, there isn’t much point to “stopping the bleeding” when the body has too much blood in the first place. (Yes, it’s a problematic metaphor to begin with, but that’s my point.)

What I want to get across is that most long-term economic improvement takes time. There will be economic booms and times of rapid expansion, but that usually has to do with incremental (read: “little by little”) improvements made among free individuals.

Bolstering trade and innovation may not be as Read the rest of this entry »

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