An Economic Nightmare: Keynesian Growth v Hayekian Austerity
I wrote this post 5 years ago. It’s a long post, but I think it was prescient. In it I demanded radical responses to the problems created by the failed capitalist model and the binary thinking of economists. Since then we’ve had some new thinking, but the responses of electorates have been to make sure the ‘selfish’ element of our experience is allowed to take precedence.
By the closing paragraph of this, the rise of the right and Donald Trump looks, if not inevitable, then less surprising at least.
I am no economist, as the state of my bank deficit can testify, nonetheless I have taken some time to try and understand what the hell has gone on with the global economy in the last few years. I lived through the boom and bust of the late 1980s and early 90s and my experience with credit then, gave me a good grounding in how fragile life becomes when we live on a play now, pay tomorrow basis.
On the other hand I still live in a Western capitalist economy, some people live without debt, but they are probably the minority. I learned from the 1980s but I could not entirely mend my ways. I did learn one thing though. Don’t buy a buy now, pay later sofa – that’s just stupid.
And that’s where Friedrich August Hayek comes in. His economic theory can be loosely applied to DFS, MFI…
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