Also, found one nice blog post about hayek vs keynes:
From 3.00 to 4.00 in this video, there is a truly stupid attempt to paint Keynes or Keynesians as supporters of war as a method of stimulus, in the comments on the Second World War.
And the producers of this video can't even understand the nature of Western economies in WWII. Of course, the US and other nations did have huge government spending in WWII, but they also had moderate command economies in these years, with price controls and rationing. I say "moderate" because the US command economy was certainly not as extreme as that of the Soviet Union.
Other nations like the UK, Canada, and Australia also had moderate command economies during WWII.
The real lesson from WWII that is devastating to Austrian and other libertarian buffoons is that advanced capitalist nations showed that their type of command economy was extraordinarily successful – in fact they won the war for us. We owe our freedom from German and Japanese fascism to central planning of production and the way the economy was run in those years. The experience in WWII refuted the Austrian idea that government can never plan production on a large scale. If that were true, how on earth did any government produce anything in these years, let alone win the war? Of course, the WWII was a horrific disaster and any wartime economy is brutal and wasteful military spending.
Towards the end of his life, Hayek basically recanted his earlier view on the role of deflation in 1929–1933:
"There is no doubt, and in this I agree with Milton Friedman, that once the Crash had occurred, the Federal Reserve System pursued a silly deflationary policy. I am not only against inflation but I am also against deflation! So, once again, a badly programmed monetary policy prolonged the depression" (Pizano 2009: 13).
Also, I don't see why we keep bringing up these old hats when it comes to economic philosophies these days, since there have been multiple generations of new economists around since then that have updated these philosophies.
Edited by duke_Qa, 14 August 2011 - 05:22 PM.