Blue Mass Group

Reality-based commentary on politics.

Keynesian Economics Explained

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At last .. an explanation of the current economic “crisis” in terms that the average American can understand

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  1. And the cause of the current financial crisis.  But thanks for the cartoon.  It gives a good explanation of how inflation can occur, particularly if there is no Federal Reserve controlling the money supply.      

  2. The cartoon you posted apparently was put together by a group called the Ludwig von Misses Institute It descirbes itself as “the research and educational center of classical liberalism, libertarian political theory, and the Austrian School of economics.”  Here is how it describes its mission,

    [T]he Mises Institute works to advance the Austrian School of economics and the Misesian tradition, and, in application, defends the market economy, private property, sound money, and peaceful international relations, while opposing government intervention as economically and socially destructive.

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    p>Someone should explain to them that one of the reasons we are in this mess is because the market economy was allowed to run rampant on its own with little oversight; i.e., regulation.  In other words, one of the key tenants of the Instiute’s laissez faire philosophy, let free markets work, has gotten us into this crisis.  It is truly ironic that you chose to post a video put together by this group.      

    • Maybe you should go back and try walking the cartoon through one frame at a time … and maybe take some notes.

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      p>Since you seem to understand that there is some connection between monetary supply and inflation maybe that should be your starting point.

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      p>The idea being, you should put on your thinking cap and try really really hard to figure out what it is in our society that is playing the role of the profesor and his wonderful duplicating machine?

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      p>Would that be Ben Bernanke and his federal reserve?

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      p>Is that what you mean when you say they are  “conroling the monetary supply”, that they are running around duplicating the money like crazy?

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      p>Now what do you suppose happens to all that extra easy money that just gets zapped into existance by the magic money making machine?

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      p>How would an entire city filled with government regulators and lofty academics prevent the ineveitable inflation created by all that counterfit money?

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      p>They cant do a thing about it, can they.
      But I sure bet that they will be able to puff up their chests and make many lofty sounding speaches.

      <

      p>quack quack

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