John Maynard Keynes was arguably the greatest economist of the 20th century. He discovered the idea that governments should stimulate demand during economic downturns – and was the creator of both the IMF and the World Bank. His ideas continue to underpin a lot of the modern economic system. If you like our films, take a look at our shop (we ship worldwide): https://goo.gl/C92mGs
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Keynes ideas worked really well in Brazil*ironic, Everytime governament plays with numbers it decrease the value of our money and our power of buy. It's never good idea put more power in governament hands they will just help the friends of the king and let people drawing on muddy. Lass state more freedom aways
Governments LOVES Keynes because he allows them to print more money! If you want to know Keynes works Just take a look at Argentina... 70 years of Keynes ideas and theories.
Results: fallen from world #5 GPD in the 20th Century to #65, The only country in the World that went from a developed country to a Frontier Country. Changed 5 times monetary assignations, deleted 13 zeros and went through 2 hyperinflation without a war. BTW President Mauricio Macri was hailed as a right Hayek neo libertarian but end up just like the rest, a democratic socialist using the same Keynes practices as all his predecessors. Now another hyperinflation is approaching.
Tom Langford I 100% agree with you, but even then... it’s still capitalism, meaning something will inevitably go wrong. Not married to the idea of Communism, but I believe any true long lasting solution must include Marxist ideology (ex. worker cooperatives).
+lil nibba In my opinion the best system is a capitalist one, with high taxes on the super-wealthy in order to invest in public works that benefit the working class e.g. universal healthcare.
Pure Capitalism doesn't work because over time all the wealth produced works its way into the offshore bank accounts of a few dozen oligarchs where it sits doing nothing and is useless to the economy and socialism doesn't work full stop. Marx was right in a lot of his critiques of capitalism, it's just his solutions obviously didn't work out. The best system is a capitalist one with government intervention in the market to prevent monopolies forming and the massive accumulation of wealth by a few individuals at the expense of the working class.
Keynes gets such a bad rap, when actually is the creator of the greatest economic policy of history. Thanks to his thought, capitalistic world (both developed and developing) grew fast and kept stable for 30 years. Severe recessions reappeared when his model was scrapped in the 1970s.
School of Life I LOVE your videos, but am disturbed about the lack of people of color. How is that? Please make an effort: James Baldwin, Ralph Ellison, Elijah Anderson to name a few. And how about issues of race. Thank you!
debt funded growth works until you press up against water limitations, no fresh water to support housing expansion voids most of that doctrine.
there were no water shortages in the 1930s. the land was mostly unscalped at that time. bob moses blew out the american economy in the automobile age and industrial civilization came to be understood as a dead end about the time the later people (greenspan, reagan, bush) mentioned above enacted their supply side policies.
I'm a big fan of The School Of Life and a big admirer of JMK but I don't think this is one of the better videos. Let me start with the category Political Theory. Is this really where Keynes belongs? He was an economist or economic philosopher. It's true that he wasn't just concerned about 'stuff or worse money' but wanted economies to work in ways that gave people the chance to enjoy the good life. He was more social rather than political. And if one wants to label it political what about the Economic Consequences Of The Peace and his criticism of the anti-capitalists in the 1930s? What is Keynes's core message? A counter cyclical fiscal policy? What does that mean philosophically? At root I think it means the socialisation of risk. In difficult times individuals won't take risks and it's pointless to expect otherwise. The government can more easily do so and the wider feeling of pessimism means it can borrow at low interest rates. To me true Keynesian thinking is about pooling risk, global interdependence, trade balances and the need for enlightened government as the best means to ensure social liberal ends. And it's odd for a philosophy channel to ignore his major philosophical work - A Treatise On Probability
"Keynes believed that what chiefly holds back countries is corruption, knee-jerk policies, and shortsightedness"
So Keynes believed the solution to corrupt, incompetent government intervention was... more government intervention? lol ok
Keynes just another Diocletian another elite saying “government is the answer to unemployment”. Yep, the government create wealth, they don’t deficit spend, they don’t send people off to war, wasting steel and energy destroying buildings and people, they just create wealth good one Keynes did you invent the smart phone, the printing press, the film industry, the diet industry, hair products, cars, chocolate , fancy watches...nope ...
someone who went to Eton and Oxford has got the answer to unemployment ...yep sure. Government - an inside man just like Marx then..a tool for the elite...trust us we’re the government we literally create prosperity for all...🤣🤣🤣
Continuing from my previous comment, When Einstein said, "God does not like to play dice" in response to quantum physics modeling; Neil's Bohr said, "Stop telling God what to do". I would extend this statement to those who think they can model economy behavior from axioms or whatever assumptions/ projections of their own, " Stop telling economy what to do". It has no binding , neither a mandate to follow your model.
As much as I like these videos, I love the comments section more!!. Many have commented that economics is not an exact science like science/engineering. I'm an engineer myself with R&D experience. I say even science/engineering is not so exact. Most of our models don't fit the experimental data which we overcome by 'calibration' that requires feedback from experiments. There are many problems that are inherently unstable and chaotic. It is impossible to develop an accurate model for them. Fluid dynamics is one such example. Any predictive model needs correction inputs from the system. There is no model that is absolutely predictive simply because you don't know all the actors and their behavior a priori or even posterior. So is economics especially when it involves as fickle as human actors involved in it. As Albert Einstein once famously said, "All models are wrong; Some are useful". When the greatest scientist waves his hand at modeling, it deserves some credit.
economies fail because of poor governments...when a government doesn't have a plan for an economy then the general welfare fails. We are seeing the implosion of many governments and economies right now. When leadership is poorly implemented because of the people we also see implosion. Venezuela is headed this way. Good thing you elected Alexandra Ocasio Kotex
Keynsian thinking always made sense to me because it was driven by the idea of preventing extreme economic failures. Neoliberal thinking just seems to rely too heavily on "markets will solve everything" - a very irrational and faith, rather than evidence based, thinking.
Keynes was good, yes, but is not "arguably the greatest economist of the 20th century" as your description of him would suggest. He got a lot wrong and invokes the government (ie. reduce freedom at the point of a gun) whenever he can't figure out how to make his system work. He's a mediocre economist at best.
Keynes' most serious analytical failure was to discount out of hand the power of land markets and land speculations as a fundamental driver of cycles of boom-to-bust. He ignored changing land use; and, in particular, the rising rents extracted by owners of centrally-located or resource-laden lands.
Keynes was correct, the way that the world economy snapped back after the 2008 crash proves the basics yet again, for one thing, it is consumption that drives the economy and when consumers stop buying the government MUST step in for the short term, end of story. If he were alive now he might be appalled at the way that the United States is spending like there is no tomorrow when it had a chance to start paying off some of the debt however, I suppose that we will see how that plays out over the next couple of years.
Given the current state of education in increasingly class stratified 🎺 ‘Merca, seemingly approaching pay to play for education etc...these vids, data, libraries & podcasts might literally become the new PhDs lmao
Hoover tried it your way. It didn't work, big time. FDR, after inviting Keynes to the White House, did it his way. It worked, even if took a way to bump up the economy to the point where it could counter the Depression. .
The Depression was caused by rampant speculation on the market thanks to people being able to invest with as little as 10% down. They didn't have the cash to cover the loss when the stock market dove because demand had peaked. The OPPOSITE of Keynes.
The Great Depression began with the Wall Street Crash of 1929. Keynes main contribution to economics 'The General Theory' was only published in 1936 but wasn't really listened to by governments until the 1940s. Now, you might blame the economic problems of the 1970s on Keynes, but you simply can't blame those of the 1930s on him.
Brilliant, summary...'Not Dogmatic', when in discussion about economics its the phrase I use about Keynes, so thanks for the confirmation. Friends and I always agreed that "Philosophy should always be written in pencil', and so should economic theory, it maybe considered a science, but its not an absolute....yet...
The narrator was 'economical' with his explanation of how the increased public spending was to be repaid. Keynes clearly states that the borrowing was to be repaid by increased taxation - meaning higher rates of tax and not just by increased tax revenue from the increased economic activity. The higher rate of tax was necessary to avoid the economy overheating. Money was put into the economy in a downturn and was to be taken out on an upturn so as to level consumption and prevent inflation. No government anywhere has ever applied Keynes' principles in full. Almost all western governments borrowed and spent but none of them did the politically difficult bit of increasing the tax rate on the upturn.
Governments shouldn't inject money into the economy to stimulate growth or create employment. The market is more competent than the government. Keynesians have some level of trust in a government that I can't muster. The only way a Keynesian based economy can truly function is under a Keynesian based dictatorship that one can genuinely trust to make "wise regulations."
I think you left out the part where he recommends that, in good economic times or upswings of growth, that governments should decrease spending, and allow the markets to do their thing, maintain or increase taxes and pay down its deficits...woeful and/ or willful obfuscation?
You had me until you blamed the 2008 crisis on neo-liberals, in which you clump the classic liberal Milton Friedman, which is laughable. If things were so wonderful under the keynesian system, why the switch? And LBJ was not Keynesian by your initial definition. He didn't create a deficit in order to create jobs, he provided a welfare state.
Keynes only believe that governments would save economies from recessions, stagnations, and crises because, in his own argument, the free market had gone through unexpected pace, which in the end, the markets were out of control.-
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