Intentions of the Holy Father for April

Ecology and Justice. That governments may foster the protection of creation and the just distribution of natural resources.
Hope for the Sick. That the Risen Lord may fill with hope the hearts of those who are being tested by pain and sickness.

John Maynard Keynes vs. F. A. Hayek

The little video below is perhaps the best summary that I have ever encountered of Keynesian economics and Hayek's economic theories.

Keynes' economic theories are dominated by the overarching theme that regulation and stimulation of the economy by a central authority (i.e., government) are the chief driving economic factor and, when fine-tuned, can become the chief means of steady growth. Any number of mechanisms are to be deployed to achieve this end: stimulus, detachment of money from an actual standard coupled with printing more money and adjusting interest rates, etc. Borrowed money can be used to stimulate growth to such a degree that growth outstrips the interest rates and can then be used to repay the loans painlessly. Sound familiar?

Hayek advocated government restricting its role to policing the market to ensure the rule of law and a market genuinely free - including of unreasonable governmental intervention. He emphasized the role of savings and prudent investment as the chief source of authentic, long term prosperity. He did not believe that debt could be made into a source of genuine wealth. Sound unpleasant?

By why is this little reflection appearing on a blog devoted to presenting the Gospel? Well, simply put, because how we live our life has spiritual implications, and our religious faith should affect how we live our life.

The rich rules over the poor,
and the borrower is the slave of the lender, (Prov 22:7).

Will we be a nation of free men, relying on our own wits and upon Divine Providence, or will we be a nation of slaves dependent upon foreign masters for a bit of dried bread, all that's left over from the sweat of our brow?

Thanks again, Anchoress.

1 comment:

Fred S. said...

Ahhhhh. EX-cellent. The totally nail this! Good pick.

Political and economic failure demand reflection. Reflection demands demands assessment. Assessment demands acceptance of truth and responsibility. Truth and responsibility demand change and reparation. Change and reparation demand sacrifice. Keynes offered the world "a way" of reparation WITHOUT sacrifice: avoidance of consequences and the reality of sin and guilty.