Apropos of our earlier Volcker discussion, consider this classic an indictment of the Business Schools Tall Paul referenced:

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Via Amptoons

Hat tip Jay H

Category: Economy, Humor, UnScience

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

18 Responses to “Keynes = Passé”

  1. obsvr-1 says:

    a similar toon can be drawn to show the TBTF, complaining about regulation; gross over leverage and risk taking; BAILOUT; return to complaining about over regulation

  2. bman says:

    The guy with the hat should be fatter.

  3. cpd says:

    What’s missing from the cartoon is Keynes pushing the U.S. over the cliff in the first place.

  4. wunsacon says:

    >> What’s missing from the cartoon is Keynes pushing the U.S. over the cliff in the first place.

    Keynes said to be counter-cyclical.

    Who cut taxes without cutting spending? Maybe there’s your perp(s).

  5. Event_horizon says:

    Here we go again…. I don’t think anyone is arguing Keynes’ counter-cyclical stimulus is a bad thing on paper, it’s just that his theory always fails in actual practice because politicians (of both parties) lack the will to enact counter-cyclical spending cuts and tax increases when necessary. And please don’t bring up the Clinton years as an example, in retrospect we all know that was a facade built upon the dot com bubble and borrowing from (temporary) Social Security surpluses.

  6. gman says:

    >> What’s missing from the cartoon is Keynes pushing the U.S. over the cliff in the first place.

    Keynes said to be counter-cyclical.

    Who cut taxes without cutting spending? Maybe there’s your perp(s).

    Who were those people that said it was unwise to ever run a surplus? I remember people saying that in the 90s boom times. Boom years are good time to cut taxes for the wealthy…as are bust times!

  7. Petey Wheatstraw says:

    Event_horizon Says:

    And please don’t bring up the Clinton years as an example, in retrospect we all know that was a facade built upon the dot com bubble and borrowing from (temporary) Social Security surpluses.
    _____________

    I remember the Republicans having a big hoopla about how those Clinton surpluses were a sure thing for at least 20 years. Took them less than 8 to swindle us into bankruptcy. Are you saying that we’re here because Republicans, being just a profligate as the Democrats, were more honest accountants?

  8. Tom K says:

    What’s the definition of insanity again?

    Keynsianism is a great theory…assuming you have low debt and increased government spending doesn’t become the norm after each recovery.

  9. nemo says:

    The hat should really say “GOP” on it.

    I remember Republicans confidently crowing back in the 80s and 90s that Keynes has been disproved.

  10. DeDude says:

    Look at the debt/GDP ration after the mother of all stimulus packages, WWII, and then look at what happened to that ratio the next 2 decades. But I guess after you have decided that gobinment never pay down debt there is always some dumb asset excuse why the examples of it being done, dosn’t count. No need to let facts get in the way of a good conclusion.

  11. cognos says:

    Keynes is THE great genius of modern macro. The entire “fed” process is his legacy (worldwide). And this current event is what Keynes saw the “great depression” could’ve been.

    The rest of you seem to love senseless human tragedy… On Austrian principles?

  12. Carse says:

    cognos says: Keynes is THE great genius of modern macro. The entire “fed” process is his legacy (worldwide). And this current event is what Keynes saw the “great depression” could’ve been.

    The rest of you seem to love senseless human tragedy… On Austrian principles?

    You must be the one at the head of the government money tree!

  13. van schaik says:

    Keynes showed us how to have around 60 consecutive years of relatively stable business cycles. Study your history. Compare the severity and frequency of the business cycles from 1840 to 1940 and 1940 to 2010. Of course he knew it wasn’t possible to totally eliminate major contractions; he was, after all, a realist who understood the nature of politicians. But he did know we could postpone the inevitable day of reckoning and that we did. In the meantime we increased the standard of living for everyone, the wealthy, the middle class, and the poor, to heights which would have been considered unimaginable a mere generation or two ago. Yes, things are not perfect and tough for many but I’m willing to bet many of us are bitching about how tough we have it as we sit in front of our big screen TV while we check out the blogs on our laptops with a smartphone in our pocket. And if you can’t afford these

  14. van schaik says:

    Keynes showed us how to have around 60 years of relatively stable business cycles. Study your history. Compare the severity and the frequency of business cycles from 1840 to 1940 and 1940 to 2010. Of course he knew it wasn’t possible to totally eliminate major contractions; he was, after all, a realist who understood politicians. But he did know we could have an extended period of economic growth and prosperity which raised the standard of living of everyone, the wealthy, the middle class, and the poor, to heights considered unimaginable a generation ago. Meanwhile many of us are bitching about how tough we have it as we sit in front of our big screen televisions and check out the financial blogs on our laptops while we have our smart phones tucked away in our pockets. And if you can’t afford these items after all the years of growth and prosperity we’ve witnessed I have to ask: Why are you dispensing financial advice and economic opinions on this blog since you obviously must not understand either?

  15. algernon says:

    Without the Keynesian myths of free lunches, prices would have adjusted to reality by now. With honest prices, resources would be moving toward optimal allocation–not stuck with hidden toxic debt everywhere. Ask the Japanese how much they like the Keynesian solutions.

  16. What the cartoon failed to show was that the ground was just out of range of the picture so it wasn’t such a great fall off a cliff after all. It surely wouldn’t have killed Uncle Sam though it may have bruised his ego. Plus there is the fat cat that is missing from the picture that takes money from Keynes after he takes it from Uncle Sam as part of the cost of his rescue

  17. MikeG says:

    The Austrian School equivalent would give no warning to Uncle Sam as he distractedly walked off the cliff, but afterward could explain gravity and the resulting injuries in great detail.

  18. call me ahab says:

    Kenyesian counter cyclical nonsense has you mesmerized-

    tough to be counter cyclical when it’s increased spending 24/7 good times/bad times and all times-

    admit its a fallacy- like a few drinks are good for you- but if you can’t stop drinking-

    maybe there’s a problem (oh- but wait- this time is different- as soon as the good times roll again- we won’t think they will never end [human psychology?] and we will pay down the debt and balance the budget)-

    cough . . .cough . . .bullshit