Keynes v. Hayek, Round 2
By David Henderson
I’ll try to hit highlights that other people haven’t mentioned (much) on the latest video by John Papola and Russ Roberts. Big picture, though: I think it’s even better than the first one, both in content and in “production values.” [For the transcript, go here.]
0:42: 1066. That warmed the cockles of my former Canadian, British-history-taking heart.
1:20: Keynes’ mention of The Road to Serfdom. I know John Papola and Russ Roberts must know, but I wonder how many other viewers know that this is what Keynes wrote in his blurb for Hayek’s Road to Serfdom:
In my opinion it is a grand book…. Morally and philosophically I find myself in agreement with virtually the whole of it: and not only in agreement with it, but in deeply moved agreement.
I was shocked that the University of Chicago Press chose not to keep that blurb in its 50th anniversary re-issue.
1:54: John Papola’s father playing Bernanke. Very nice, even the slight smile.
2:50: Jason Robard’s kind-of lookalike on the Congressional panel.
3:45: Great line about the draft during WWII accounting for full employment.
4:24: Jobs are a means, not an end. For a great reading on this, see Dwight Lee’s modern classic, “Creating Jobs vs. Creating Wealth.”
4:35: Bernanke rears his bearded head again.
4:50: Keynes: “Where it goes doesn’t matter, just get spending flowing.”
5:56: Hayek: “I want plans by the many and not by the few.”
7:18: Bernanke again.
7:28: One of Hayek’s best lines, one that the Keynesians have never contended with: “With political incentives, discretion’s a joke.”
8:15: Ed Stringham does a great job as the handsome, credulous cub reporter.
Final thing: Some of the videos of Hayek in front of war scenes reminded me that during the German government’s bombing of England during WWII, Keynes and Hayek sometimes patrolled the campus of Cambridge University together. LSE, where Hayek taught, had decamped to Cambridge to avoid the bombs. I can’t remember where I read that though.
My bottom line: Two opposable-things-one-on-each-hand-that-Roger-Ebert’s-absurd-claim-to-intellectual-property-won’t-let-me-specify up.