Keynesianism: Inherently Anti Worker

[Sammy Jankis]

http://www.fff.org/freedom/0197b.asp

Keynes, however, argued that workers suffer from "money illusion." They think only in terms of the nominal dollars in their paychecks, not in terms of their "real wages," i.e., in terms of the real purchasing power of what their money wages can buy. As a consequence, workers would strongly resist any significant cut in their money wages, even if the result were to be high and prolonged unemployment.

The answer, Keynes proposed, was to decrease real wages, and, therefore, the cost of hiring labor, through price inflation. Precisely because workers suffer from money illusion, they would not ask for higher money wages to compensate for the loss in their consumer buying power due to the rise in prices. Higher prices for products with relatively unchanged money wages would improve or create the profit margins out of which would come the incentives for employers to expand production and hire back the unemployed.

In the Keynesian view, government budget deficits are the mechanism for bringing this about. Government would take in less tax revenue than it spent on goods and services. The net addition of government spending in the economy through money creation (or borrowing of "idle" savings accumulating in banks) to finance the budget deficit would be the device through which "aggregate demand" could be stimulated and prices "creepingly" pushed up.

 

[DamnYankee]

This guy was a retard. No wonder the Democrat Party sees him as their god.

 

[Don Quixote]

http://www.fff.org/freedom/0197b.asp

Keynes, however, argued that workers suffer from "money illusion." They think only in terms of the nominal dollars in their paychecks, not in terms of their "real wages," i.e., in terms of the real purchasing power of what their money wages can buy. As a consequence, workers would strongly resist any significant cut in their money wages, even if the result were to be high and prolonged unemployment.

The answer, Keynes proposed, was to decrease real wages, and, therefore, the cost of hiring labor, through price inflation. Precisely because workers suffer from money illusion, they would not ask for higher money wages to compensate for the loss in their consumer buying power due to the rise in prices. Higher prices for products with relatively unchanged money wages would improve or create the profit margins out of which would come the incentives for employers to expand production and hire back the unemployed.

In the Keynesian view, government budget deficits are the mechanism for bringing this about. Government would take in less tax revenue than it spent on goods and services. The net addition of government spending in the economy through money creation (or borrowing of "idle" savings accumulating in banks) to finance the budget deficit would be the device through which "aggregate demand" could be stimulated and prices "creepingly" pushed up.

and what about cost of living adjustments (COLA)...although they always lag and are likely more in the way of increasing pseudo wages

 

[Sammy Jankis]

and what about cost of living adjustments (COLA)...although they always lag and are likely more in the way of increasing pseudo wages

Yes. You've dealt with your own idiocy. Excellent self burn.

 

[tinfoil]

Yes. You've dealt with your own idiocy. Excellent self burn.

LOL
I was wondering what the fuck he was trying to say.

Man these keynesians are just followers. They are smart enough to learn a set of rules, but they lack the ability to question the rules. It's like a black box to them.

 

[Sammy Jankis]

LOL
I was wondering what the fuck he was trying to say.

Man these keynesians are just followers. They are smart enough to learn a set of rules, but they lack the ability to question the rules. It's like a black box to them.

That whole site seems awesome. It's huge huge superlong awesome essay.

 

[Sammy Jankis]

Basically all this Libertarian free market stuff is moot when you have social engineers using the money system this way.

 

[FUCK THE POLICE]

Keyne's theorem was sound, and this is a joke of a description of it, but it really doesn't apply anymore since the death of unions.

If a company cannot cut costs by reducing wages because unions refused to budge their only choice would be to lay off workers. Keynes identified this as one of the reasons unemployment goes up during a recession instead of wages going down. You can solve this by inflating the money supply, which reduces companies need to lay off workers and so decreases the unemployment rate. However in the modern age companies just never give workers raises, cut wages all the time, lay them off anyway, and no one belongs to a union.

 

[Sammy Jankis]

Keyne's theorem was sound, and this is a joke of a description of it, but it really doesn't apply anymore since the death of unions.

If a company cannot cut costs by reducing wages because unions refused to budge their only choice would be to lay off workers. Keynes identified this as one of the reasons unemployment goes up during a recession instead of wages going down. You can solve this by inflating the money supply, which reduces companies need to lay off workers and so decreases the unemployment rate. However in the modern age companies just never give workers raises, cut wages all the time, lay them off anyway, and no one belongs to a union.

Yeah. It really is easier to make people poor with inflation instead of wage reductions. that still means he an asshole.

And it is still relevant. workers are still hurt by these policies.

Stop being a central banker fascst dicksuck.

 

[FUCK THE POLICE]

Yeah. It really is easier to make people poor with inflation instead of wage reductions.

It's better to have your wages reduced than to have no job.

And it is still relevant. workers are still hurt by these policies.

Stop being a central banker fascst dicksuck.

Keynes theory is not really paid much attention to since the fall of unions and since Friedman's paper showing the link between huge depressions and a collapse in the money supply.

 

[Sammy Jankis]

It's better to have your wages reduced than to have no job.

true, but inflation still hurts us all.

Keynes theory is not really paid much attention to since the fall of unions and since Friedman's paper showing the link between huge depressions and a collapse in the money supply.

no. they're still doing his stupid crap. Stop lying.

 

[FUCK THE POLICE]

true, but inflation still hurts us all.


no. they're still doing his stupid crap. Stop lying.

OK.

 

[Sammy Jankis]

OK.

Thank you.

 

[Minister of Truth]

Asshate, I thought you liked a controlled economy. Why attack Keynes, or do you thnk Friedman would support your idiotic beliefs?

 

[Sammy Jankis]

Asshate, I thought you liked a controlled economy. Why attack Keynes, or do you thnk Friedman would support your idiotic beliefs?

Refusing to deal with slave labor nations is not a "controlled economy".

Reasonable protectionism is not "controlled economy".

You want forced trade with all dictator nations.

Free markets should also include the right to say no to bad deals.

 

[DamnYankee]

Man these keynesians are just followers. They are smart enough to learn a set of rules, but they lack the ability to question the rules. It's like a black box to them.

This!

 

[FUCK THE POLICE]

Asshate, I thought you liked a controlled economy. Why attack Keynes, or do you thnk Friedman would support your idiotic beliefs?

Keynes never advocated a control economy.

 

[Minister of Truth]

Keynes never advocated a control economy.

But Keynesians of both the proto and neo persuasions do.