Essential Hayek Videos: Economic Booms and Busts

[Chris]

This is video 2 in the series Essential Hayek Videos aimed at presenting basic Hayekian ideas about how the economy works. The first vieo is here: http://thepoliticalforums.com/threads/45960-Essential-Hayek-Videos.

Yes, the video is oversimplified. It's only 3 minutes long. The purpose is to start discussion.



https://www.youtube.com/watch?v=eGbAXSV9E-k

[Peter1469]

I don't see the links.

[Chris]

Links?

[Peter1469]

Got the video now.

Watching.

[Chris]

OK, let's tie video one and two together. It's simple. We have booms and busts because the government tries to manage the economy. But it can't possibly do that correctly because it can't possibly solve the economic calculation problem. The inputs are too many, too complex, too dynamic. Yet individuals in society do it everyday simply by subjective valuation of information communicated by price signals. Sure, you can research why the price of coffee rose or fell but you don't have to. Society is a distributed, decentralized processor, metaphorically speaking.

[Captain Obvious]

Governmental influences are one of many conditions that impact the economy, not the leading or sole condition by any stretch.

A huge flaw in this assumption is that the consumer is just an ignorant robot reacting as an individual unit to fluctuations in economic conditions. Companies made that huge mistake, assuming that consumers are just ignorant sheep a long time ago.

[Safety]

Ok, totally disappointed, clicked this thread expecting to see videos of her....

http://images.complex.com/complex/image/upload/t_article_image/eccsr4nfnejhhxoetpod.jpg

[Captain Obvious]

Ok, totally disappointed, clicked this thread expecting to see videos of her....

http://images.complex.com/complex/image/upload/t_article_image/eccsr4nfnejhhxoetpod.jpg

There's actually a Selma video in one of these threads if you care to venture.

I don't think she's all that attractive to be honest. I wouldn't slam the door in her face, don't get me wrong but... eh, if I had my choice I'd go to the next aisle.

[Chris]

Governmental influences are one of many conditions that impact the economy, not the leading or sole condition by any stretch.

A huge flaw in this assumption is that the consumer is just an ignorant robot reacting as an individual unit to fluctuations in economic conditions. Companies made that huge mistake, assuming that consumers are just ignorant sheep a long time ago.


I don't get any of that out of the video at all.

We know government tries to manage the economy, basically to try and smooth out natural business cycles. The video is about the reason it not just fails to do that but exaspperates cycles into booms and busts, bubbles and recessions.

In Austrian economics the consumer is an active agent who makes subjective choices in actions, and not just economically but socially in general.

[Captain Obvious]

I don't get any of that out of the video at all.

We know government tries to manage the economy, basically to try and smooth out natural business cycles. The video is about the reason it not just fails to do that but exaspperates cycles into booms and busts, bubbles and recessions.

In Austrian economics the consumer is an active agent who makes subjective choices in actions, and not just economically but socially in general.

That's the point, the video is inadequate IMO.

It's painting the picture it wants to paint.

[Chris]

That's the point, the video is inadequate IMO.

It's painting the picture it wants to paint.

Rather you saw in it what you wanted to see.

[Captain Obvious]

Rather you saw in it what you wanted to see.

Not really, my mind doesn't work that way.

[Chris]

Not really, my mind doesn't work that way.

Then explain why you saw the opposite of what the video was about. I mean, not even in the ballpark. And, captain, everybody's mind works that way.

[Captain Obvious]

Then explain why you saw the opposite of what the video was about. I mean, not even in the ballpark. And, captain, everybody's mind works that way.

Our minds don't think alike.

[Chris]

I'd really rather discuss the point of the video than your personal issues, cap.

[Chris]

The bigger picture here is a long-running argument between Keynes and Hayek over trusting the government to trusting the people. Here's a rap about it...


https://www.youtube.com/watch?v=d0nERTFo-Sk

[Captain Obvious]

I'd really rather discuss the point of the video than your personal issues, cap.

lol!