Austrian Economics and Keynesianism (Keynesian Economics) Explained in One Minute

A one minute video which explains what Austrian Economics and Keynesianism are all about. It's a topic that tends to generate heated debates on the Internet and in my opinion, it's important to understand how Austrian Economists as well as Keynesians see the world in order to become better at economics.

Don't make the mistake of simply picking a side and then blindly adhering to everything it stands for, always make your own decisions!

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[RedDuke]

Austrians also believe that severe financial crisis are created by state invervention (e.g. the Federal Reserve turned the 29' crash, which would otherwise have been a small financial crisis, into the strongest economic crisis in history).

[justintrefney]

Austrian economics is the correct one.

[randallrogers]

the last 80+ years of Keynesian economics has absolutely destroyed the middle class's propensity to create wealth. The political class and wall street are fine however.

[benv]

I like how you portrayed government economic policy as benevolent and making people rich, while Austrian as wanting financial crises to help people. 10/10 fair and balanced

[TXLionHeart]

The Keynesians want to set interest rates low to expand credit, but that doesn't cause a real economic boom. The new money is confused for real loan-able funds; yet, it's just creating inflation that will lead to a future economic downturn.

[sharperguy]

The place you should study isn't the bust, it's the boom that should make you feel leery, that's the crux of the theory.

[eivindfskjellum]

Put it simply:

- Austrian: Correct and calibrate as you go
- Keynesian: Push the problem ahead of us until it is so big that a financial cataclysm is inevitable

That's why 2023 is the new 1929.

[b.mckaybyam]

I don't believe this is a fair representation of the Austrian perspective. The Austrians believe that there is nothing within standard economic theory that accounts for booms and busts, therefore if the government didn't intervene these booms and bust would not occur. The video claims they think the bust of crisis is natural but Austrians postulate that these events only happen as a result of government intervention. This video is correct on the Austrian perspective for what to do after the government has induced a boom and bust, they would say do nothing and allow the market to restructure to the actual supply and demand situation of the market.

[bane]

I've read many books on economics. By far, Austrian economics makes the most sense. I used to believe in big government. Some of my arguments were refuted so it intrigued me and made me want to start studying economics. I realized just how wrong I was because Austrian economics makes you think very critically about things and take everything into account so your critical thinking skills must be on point to follow this school of thought.
They refuted all government intervention. I haven't heard any good counter argument to them so I'm sticking with them.

[ezekialbones]

Austrian economics can function and work with or without a government. Keynesian economics can only be implemented by the state

[Anamnesis]

It's fun to come back to this in 2021 and see that the metaphor used to describe Keynesian intervention is the government coming in with a syringe.

[MatthewMarcus]

Who ended up here because they’re reading “The Bitcoin Standard?” 🙋‍♂️

[khasarnyamdorj]

The concept of this video is entirely wrong. Austrian economist never thought or considered economic crisis as a bitter medicine or something useful to must occure. They considered economic crisis is a outcome of government intervention and it is the process that the economy is getting rid of its unhealthy and artificial stuffs. They never proposed any medication or solution to fixing economic crisis. They believed in markets which can fix it by itself. But it will implement only without government intervention in economy. They do not believe that government intervention, central planning or any other good ideas which expresses that the state or a few smart people can fix problems than the market. Austrian economist are not social engineers. They are scholars who are trying to observe a market processrationally and want to explain it properly.

[michaelbrow]

Having just purchased Keynes book I will have great enjoyment reading. I'm no expert and definitely in early days of my learning but most governments that seem to get deemed as following keynisian economics actually are only half assing it. I must say though it's a fascinating subject area 😁

[anneerickson]

I’m on the Austrian Economist side! 🇺🇸

[zsombornagy]

As an Austrian, despite many other people's comments, I think you did a good job representing or describing Austrian economics, considering the short length of the video.

[LadyCoyKoi]

Finally a series that teaches economics. ^_^ Not confusing at all.

[unohifive]

Gov intervention works well in the short term but hurts in the long term also the changes the Gov implaments also rarely get reversed thats the main problem with Gov intervention.

[jep]

Picking an economic school like it’s a team is ridiculous. You should learn about them all, but recognise that they all have useful and non useful ideas and the utility of those ideas won’t remain constant through time. What matters is the data and policy making should be nimble enough and our economic thought flexible enough to respond to what we find in the data.