Hunter Lewis–Where Keynes Went Wrong–Videos
“Let us also keep in mind that a demand for better answers is not a partisan exercise. As we have seen, most Republicans are broadly Keynesians, as are most Democrats, as are most parties throughout the world. This is what “everyone” has been taught. We are all thus caught up together in a circular argument(that Keynesianism is right because most people assume it is right). If we want to save our children from more failed experiments, we will need to embrace change, real change, not the “change” promised by President Obama and other political leaders that just takes us back to the 1930s.”
“Keynes did not add any new idea to the body of inflationist fallacies, a thousand times refuted by economists…
He merely knew how to cloak the plea for inflation and credit expansion in the sophisticated terminology of mathematical economics.”
~Ludwig von Mises, Human Action, pages 787 and 793
In responding to the financial crash of 2008, both the Bush Administration and the Obama Administration have relied on prescriptions developed by John Maynard Keynes, the most important economist since Marx. But should we be relying on Keynes? What did Keynes actually say? Did he make his case? Hunter Lewis concludes that he did not. If Keynes was wrong then so are the economic policies of virtually all world governments today.
Hunter Lewis on ‘Where Keynes Went Wrong’
Best Books Criticizing Keynesian Economics | David Gordon
Keynesian Predictions vs. American History | Thomas E. Woods, Jr.
Keynesian Economics vs. Austrian Economics
Ron Paul – Discussing Austrian vs. Keynesian Economics
Prepare for the Worst | Ron Paul
Bank Failures in a Keynesian World | Douglas E. French
Ron Paul: Keynesianism Delivers a Decade of Zero
Revisiting the Economics of John Maynard Keynes | PBS NewsHour
Fear the Boom and Bust” a Hayek vs. Keynes Rap Anthem
Thomas Sowell on Intellectuals and Society
“Let us hope that we do not have to wait too long for Keynes to join Mao and Marx and other faded and false utopian. To turn away from false utopias does not mean giving up on entirely attainable ends and ideals. We can have a stable economy, one built on truthful prices and profits. That economy can be sustainable both financially and environmentally, and it can, with work and persistence, finally put human poverty behind us.”
“In old fashioned language, Keynes proposed cheating the workers.”
~Ludwig von Mises, Economic Policy, page 70
For the last seventy-four years college students, both undergraduate and graduate, were taught Keynesian economics in their Macroeconomics courses. I was one of them.
The works of von Mises, Hayek, and Hazlitt were never mentioned.
Many professors, even today, do not know who they were.
Times are a changing.
Unfortunately the Keynesian cult is alive and well in the economics profession and in the White House.
One only wonders why any one would still take Keynes or Keynesian economists seriously.
Yet they do.
Apparently ideology trumps logical thinking, knowledge of economic history, the history of economic thought and common sense.
Hunter Lewis dedicated his book to Henry Hazlitt and recommended especially his books, The Failure of the “New Economics” and Economics in One Lesson.
I could not agree more with his recommendations.
“The art of economics consists of looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.”
“Henry Hazlitt did the seemingly impossible, something that was and is a magnificent service to all people everywhere. He wrote a line-by-line commentary and refutation of one of the most destructive, fallacious, and convoluted books of the century. The target here is John Maynard Keynes’s General Theory, the book that appeared in 1936 and swept all before it.
In economic science, Keynes changed everything. He supposedly demonstrated that prices don’t work, that private investment is unstable, that sound money is intolerable, and that government was needed to shore up the system and save it. It was simply astonishing how economists the world over put up with this, but it happened. He converted a whole generation in the late period of the Great Depression. By the 1950s, almost everyone was Keynesian.
But Hazlitt, the nation’s economics teacher, would have none of it. And he did the hard work of actually going through the book to evaluate its logic according to Austrian-style logical reasoning. The result: a 500-page masterpiece of exposition.
Murray Rothbard was blown away.
Keynes’ General Theory is here riddled chapter by chapter, line by line, with due account taken of the latest theoretical developments. The complete refutation of a vast network of fallacy can only be accomplished by someone thoroughly grounded in a sound positive theory. Henry Hazlitt has that groundwork.An “Austrian” follower of Ludwig von Mises, he is uniquely qualified for this task, and performs it surpassingly well. It is no exaggeration to say that this is by far the best book on economics published since Mises’ great Human Action in 1949. Mises’ work set forth the completed structure of the modern “Austrian” theory. Hazlitt’s fine critique of Keynes, based on these principles, is a worthy complement to Human Action.
Henry Hazlitt, a renowned economic journalist, is a better economist than a whole host of sterile academicians, and, in contrast to many of them, he is distinguished by courage: the courage to remain am “Austrian” in the teeth of the Keynesian holocaust, alongside Mises and F. A. Hayek. On its merits, this book should conquer the economics profession as rapidly as did Keynes.
But whether the currently fashionable economists read and digest this book or not is, in the long run, immaterial; it will be read, and it will destroy the Keynesian System. At the very least, there is now a new generation under thirty-five, to bring this message to fruition.
Far from being a dull read, this book has all the brightness and clarity we’ve come to expect from Hazlitt. He is a dazzling writer, and one can’t be thrill to see him in the ring with the giant Keynes. By the time he delivers the knock-out punch–taking on Keynes’s suggestion that we nationalize investment–there is nothing left of his opponent.
Background Articles and Videos
Epstein and Taylor: Are we all Keynesians now?
Hazlitt, My Hero | Jim Grant
An Ideal Guide to Keynes’s Dangerous and Destructive Economics
by David Gordon
“…Lewis has exposed with unmatched clarity the lineaments of Keynes’s system and enabled us to see exactly its disabling defects. Keynes defied common sense, unable to sustain the brilliant paradoxes that his fertile intellect constantly devised. Lewis’s book is an ideal guide to Keynes’s dangerous and destructive economics.”
Biography of Henry Hazlitt (1894-1993)
Llewellyn H. Rockwell Jr.
Henry Hazlitt (1894-1993)
“…While at Newsweek, Hazlitt wrote Economics in One Lesson, which has sold nearly one million copies and is available in at least ten languages. Hazlitt argued that government intervention focuses on the consequences that are seen and ignores those that are not. The latter include wealth not created and even destroyed by regulation, inflation, and taxation. In 1947, he wrote Will Dollars Save the World?, a book attacking the Marshall Plan, which he saw as an international welfare scheme. The subsequent history of U.S. foreign aid shows just how right he was.
In 1950, Hazlitt became editor, along with John Chamberlain, of the fortnightly magazine, the Freeman; some of his best articles published there were later collected into The Wisdom of Henry Hazlitt. Also as a prophet, Hazlitt wrote The Great Idea (reprinted a year later as Time Will Run Back), a novel showing how a country can move from socialism to market economics at a time when most people thought socialism was the unstoppable wave of the future.
In 1959, Hazlitt came out with The Failure of the “New Economics,” an extraordinary line-by-line refutation of John Maynard Keynes’s General Theory. And though it was panned by the American academic journals at the time, it enlivened a growing movement favoring free markets over state planning and continues to be an essential resource. A year later, Hazlitt collected a series of scholarly attacks on Keynes as The Critics of Keynesian Economics, still in print today. …”
The Critics of Keynesian Economics
“…Henry Hazlitt confronted the rise of Keynesianism in his day and put together an intellectual arsenal: the most brilliant economists of the time showing what is wrong with the system, in great detail with great rigor. With excerpts from books and articles published between the 30s and 50s, it remains the most powerful anti-Keynesian collection ever assembled.
· Introduction By Henry Hazlitt
· Say’s Law By Jean Baptiste Say
· Of The Influence Of Consumption On Production By John Stuart Mill
· Mr. Keynes On The Causes Of Unemployment By Jacob Viner
· Unemployment: And Mr. Keynes’s Revolution In Economic Theory By Frank H. Knight
· Mr. Keynes’ “General Theory” By Etienne Mantoux
· The Economics Of Abundance By F. A. Hayek
· Liquidity Preference And The Theory Of Interest And Money By Franco Modigliani
· Digression On Keynes by Benjamin M. Anderson
· The Philosophy Of Lord Keynes By Philip Cortney
· Beveridge’s “Full Employment In A Free Society” By R. Gordon Wasson
· John Maynard Keynes By Garet Garrett
· The Fallacies Of Lord Keynes’ General Theory By Jacques Rueff
· Appraisal Of Keynesian Economics By John H. Williams
· Continental European Pre-Keynesianism By L. Albert Hahn
· Stones Into Bread, The Keynesian Miracle By Ludwig Von Mises
· Lord Keynes And Say’s Law By Ludwig Von Mises
· Lord Keynes And The Financial Community By Joseph Stagg Lawrence
· The Economics Of Full Employment By Wilhelm Ropke
· The Significance Of Price Flexibility By W. H. Hutt
· Keynes’ Theory Of Underemployment Equilibrium By Arthur F. Burns
· The Keynesian Mythology By Melchior Palyi
Mr. Keynes And The “Day Of Judgment” By David Mc Cord Wright
The Making of the Keynes-Hayek Rap: Economic Theory Meets Popular Culture
Hayek on Keynes (1977)
Hayek on Keynes
Keynes and His Influence | Gary North
Keynes the Man: Hero or Villain? [Murray N. Rothbard]
Murray Rothbard Where Did The Free Markets Go?
Keynesian Economics: The Beast That Won’t Die | Peter G. Klein
Keynes and the “New Economics” of Fascism | by Joseph T. Salerno [Lecture 6 of 10]
Socialism and Fascism
John Taylor’s Reason Versus Paul Krugman’s Hyperbole (Part 1 of 2)
John Taylor’s Reason Versus Paul Krugman’s Hyperbole (Part 2 of 2)
The Failure of the “New Economics” (Chapter 29) by Henry Hazlitt
Turning Japanese – Is the US Creating Its Own Lost Decade?
TAKE IT TO THE LIMITS: Milton Friedman on Libertarianism
“…Hunter Lewis was born in Dayton, Ohio, USA, in 1947 and graduated from the Groton School and Harvard University (AB 1969). After working at the Boston Company, then one of the largest investment managers, first as assistant to the president and then vice-president, in 1975 Lewis co-founded and served as co-chief executive and then chief executive of Cambridge Associates LLC, an investment advisor to research universities and colleges representing over three-quarters of U.S. higher education endowment assets, foundations, cultural organizations, international organizations and other non-profit institutions as well as families. Lewis was a co-inventor of what became known as the American University style of institutional investing, which gave American university endowment funds the highest investment returns in the world among institutional investors, and which became widely emulated.
In addition to his work at Cambridge Associates, Lewis has served as treasurer and president of the American School of Classical Studies at Athens, a graduate research institute affiliated with 150 American colleges and universities, president of the Alliance for Natural Health-USA, chairman of the National Environmental Trust, chairman of Dumbarton Oaks (affiliate of Harvard University), founder and chairman of the Trearne Foundation, which provides educational assistance to foster children, chairman of the Worldwatch Institute, chairman of Shelburne Farms, treasurer of the World Wildlife Fund (World Wide Fund for Nature), trustee of World Wildlife Fund International, member of the Advisory Board of Environmental Health Sciences, trustee of the Morgan Library, trustee of the Rockefeller Brothers Fund, trustee of the Thomas Jefferson Foundation (Monticello), trustee of the Peabody School, trustee of the Groton School, trustee of the Core Knowledge Foundation, and member of the World Bank Pension Finance Committee.
Lewis has contributed to many newspapers and periodicals including the New York Times, The Times, the Washington Post, and the Atlantic Monthly as well as numerous websites such as Forbes.com. He also is an author and editor of books on economics and moral philosophy. His works include: Where Keynes Went Wrong: And Why World Governments Keep Creating Inflation, Bubbles, and Busts (Axios Press; September 25, 2009), Are the Rich Necessary?: Great Economic Arguments and How They Reflect Our Personal Values (Axios Press; September 25, 2007; Rev Updated PB edition October 30, 2009), A Question of Values : Six Ways We Make the Personal Choices That Shape Our Lives (Harper, Collins; 1990, Axios Press; Rev Updated edition May 25, 2000), The Beguiling Serpent (Axios Press; August 31, 2000), Alternative Values: For and Against Wealth, Power, Fame, Praise, Glory, and Physical Pleasure (Axios Press; July 25, 2005) and The Real World War (Coward, McCann & Geoghegan/Putnam; 1982).
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