Boom & Bust Rap

Starring Keynes and Hayek;  Too funny!

http://www.youtube.com/watch?v=d0nERTFo-Sk&feature=player_embedded

Here are the lyrics:

[Keynes Sings:]

John Maynard Keynes, wrote the book on modern macro The man you need when the economy's off track, [whoa] Depression, recession now your question's in session Have a seat and I'll school you in one simple lesson

BOOM, 1929 the big crash We didn't bounce back--economy's in the trash Persistent unemployment, the result of sticky wages Waiting for recovery? Seriously? That's outrageous!

I had a real plan any fool can understand The advice, real simple--boost aggregate demand! C, I, G, all together gets to Y Make sure the total's growing, watch the economy fly

We've been going back and forth for a century [Keynes] I want to steer markets, [Hayek] I want them set free There's a boom and bust cycle and good reason to fear it [Hayek] Blame low interest rates. [Keynes] No... it's the animal spirits

Hayek sings:

I'll begin in broad strokes, just like my friend Keynes His theory conceals the mechanics of change, That simple equation, too much aggregation Ignores human action and motivation

And yet it continues as a justification For bailouts and payoffs by pols with machinations You provide them with cover to sell us a free lunch Then all that we're left with is debt, and a bunch

If you're living high on that cheap credit hog Don't look for cure from the hair of the dog Real savings come first if you want to invest The market coordinates time with interest

Your focus on spending is pushing on thread In the long run, my friend, it's your theory that's dead So sorry there, buddy, if that sounds like invective Prepared to get schooled in my Austrian perspective