Wednesday, December 20, 2017

Yanis Varoufakis - Debtors' Prison, John Maynard Keynes & the Double Standards of the EU


In this video founder of the Democracy in Europe Movement 2025 and former finance minister of Greece, Yanis Varoufakis, talks about the concept of "Debtors' Prison" and the economic ideas of John Maynard Keynes. In addition Varoufakis surfaces the double standards of the European Union regarding the enforcement of economic rules amongst different member states.


Nothing new here for seasoned economists, but I like the way Yanis Varoufakis put these points of view across. Much criticism has been aimed at Keynesianism but Keynes ideas were never fully implemented. I have read that the ruling elite found Keynes ideas to be too radical so they came up with Neo-Keynesian economics instead. 

7 comments:

Ralph Musgrave said...

"Nothing new here". I'm not surprised. Although Varoufakis has a very large mouth, I've never known him say anything of any interest.

But if I was in his shoes, I'd probably do what he does. Once you're famous for being famous, you can earn big bucks touring the world talking twaddle.

AXEC / E.K-H said...

Keynes’ scientific nonexistence
Comment on Yanis Varoufakis on ‘Debtors’ Prison, John Maynard Keynes & the Double Standards of the EU’

Keynesianism is a failed approach, more precisely, Keynesianism is axiomatically false and materially/formally inconsistent. This is a proven fact.#1 Because the underlying theory is false in all dimensions, Keynesian policy guidance NEVER had sound scientific foundations.

So, the question is why are there still Keynesians around 80 years after the General Theory and why have neither pro- nor anti-Keynesians spotted Keynes’ lethal error/mistake/blunder until this very day.

Here is where Keynesianism went straight into the deep woods: “Income = value of output = consumption + investment. Saving = income − consumption. Therefore saving = investment.” (GT, p. 63)

This two-liner is conceptually and logically defective because Keynes NEVER came to grips with profit: “His Collected Writings show that he wrestled to solve the Profit Puzzle up till the semi-final versions of his GT but in the end he gave up and discarded the draft chapter dealing with it.” (T√≥masson et al.)

Because profit is ill-defined the WHOLE analytical superstructure of Keynesianism is false.#2

While Keynes was right in rejecting the microfoundations approach, he simultaneously messed up the macrofoundations approach.#3 Because both Walrasianism and Keynesianism are materially/formally inconsistent any synthesis of the two is merely a bad joke.#4

So, Keynes messed up profit theory#5 and employment theory#6 but both pro- and anti-Keynesians never realized anything. After-Keynesians and Flat-earthers are intellectually at the same level.#7

Egmont Kakarot-Handtke

#1 How Keynes got macro wrong and Allais got it right
https://axecorg.blogspot.de/2016/09/how-keynes-got-macro-wrong-and-allais.html

#2 For details see cross-references Keynesianism
http://axecorg.blogspot.de/2016/09/keynesianism-cross-references.html

#3 From false micro to true macro: the new economic paradigm
http://axecorg.blogspot.de/2016/11/from-false-micro-to-true-macro-new.html

#4 The father of modern economics and his imbecile kids
http://axecorg.blogspot.de/2016/11/the-father-of-modern-economics-and-his.html

#5 Profit theory in less than 5 minutes
http://axecorg.blogspot.de/2017/07/profit-theory-in-less-than-5-minutes.html

#6 Demand-led and wage-led growth
http://axecorg.blogspot.de/2017/12/demand-led-and-wage-led-growth.html

#7 Throw them out! Orthodox and heterodox economists are unfit for science
https://axecorg.blogspot.de/2017/12/throw-them-out-orthodox-and-heterodox.html

Kristjan said...

""Nothing new here". I'm not surprised. Although Varoufakis has a very large mouth, I've never known him say anything of any interest.

But if I was in his shoes, I'd probably do what he does. Once you're famous for being famous, you can earn big bucks touring the world talking twaddle."



That is exactly what he got out of It. There was never any plan to get Greece out of this mess. He has a fan club now, there are tens of thousands of lefties who belive in their euro dream and Varoufakis is enforcing that dream for them.

He knows how to communicate with snowflakes. Questions like how are you going to solve imbalances between member states don't makse sense to them. All they care is social justice and Varoufakis is their dream guy, UBI in Europe etc. Syriza and Varoufakis are a dream for neoliberals. They talk to talk.

Noah Way said...

Economic is the silly science. Whether Keynes’ or AXEC's.

Matt Franko said...

"Questions like how are you going to solve imbalances between member states don't makse sense to them. "

Right it has to do with mathematics so they are out immediately... never had the training...

AXEC / E.K-H said...

ICYMI

Keynes, Lerner, MMT, Trump and exploding profit
https://axecorg.blogspot.de/2017/12/keynes-lerner-mmt-trump-and-exploding.html

#Economics #FailedScience #FakeScience #CargoCultScience #BogusScience #ScientificIncompetence #OrthodoxEconomics #HeterodoxEconomics #Keynes #Keynesianism #PostKeynesianism #MMT #ProfitTheory #ParadigmShift #Science #MacroFoundations

Kristjan said...

"Right it has to do with mathematics so they are out immediately... never had the training..."

I have tried with snowflakes explaining MMT. It doesn't work, their attention is on social justice, if Greece has austerity and high unemployment then It is the evil bankers and capitalists not the euro. They are even more unwilling to let go of their political cloud than the right wing.
I have met people who seriously propose to get rid of all taxes and have UBI. After you hear something like that you don't want to explain any more," may be some other time". They really like the idea of government never running out of money. I have not much faith in the left.

Back when Syriza was acting crazy I was wondering what happened to Tsipras since he had been in MMT class (there was a video him visiting America and meeting with MMT people). Now I think I got it. He is a typical left wing snowflake. He probably understood nothing what he heard there. I am fairly certain that if they would have abandoned euro their new currency would have been run to the ground by now. Economics is not for these kind of people. They are much more interested in what Marx has said than the bolts and nuts of monetary system.

I don't think It has to do with math. The one who proposed to get rid of all taxes and have UBI had a university degree in math, so in math she was probably a lot better than I was.