“The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood.
Indeed the world is ruled by little else.
Practical men, who believe themselves to be quite exempt from any intellectual influence, are usually the slaves of some defunct economist.”John Maynard Keynes
When I was struggling in my studies in economics in my twenties, there were not the fun ways to learn as of today.
It’s both educational and entertaining if you like me need a refresher in economics.
http://www.youtube.com/watch?v=GTQnarzmTOc Round Two Hayek versus Keynes has had over a million views on you tube.
It's sequel is “Fear the boom and bust rap!” Over 2 ½ million views on you tube
Such assumptions included
- perfect information,
- profit maximisation
- and rational choices.
The arguments they had in the 1930s have been revived in the turmoil of our latest global financial crisis.
The iplayer link is
The debate was presented by eminent economists of our era - Lord Skidelsky ( Warwick University) and Professor George Selgin ( University of Georgia)
Friedrich Hayek did not believe it was possible to spend your way out of an economic crash .
Hayeck’s theory does not deny that one should maintain spending when boom turns to bust. But it goes further.
As Prof George Selgin University of Georgia quoted in the recent debate from the LSE broadcast on Radio 4.
“You can't cut your way out of a slump; you have to grow your way out. ” quoted by Lord Skidelsky University of Warwick
"….It is an extraordinary example of how, starting with a mistake, a remorseless logician can end in Bedlam."
Source : " How Accurate Are Private Sector Forecasts? Cross-Country Evidence from Consensus Forecasts of Output Growth", by Prakash Loungani, International Monetary Fund (IMF), December 2002
Well prediction of recession is a very hard business clearly. As professional salespeople our challenge is to sell on behalf of our businesses through the recessions and out to the other side.
Whether you are a Keynesian or Hayekian, as “ practical folk of the Profession of Selling” we need to avoid being slaves of any defunct economist.
But the question is - which one?!
I had a very nice email from Professor Selgin with some suggestions for further reading which I would like to share - both articles are interesting and stretching but worth the struggle in reading..
Dear Mr. Alford,
Thank you for your kind remarks regarding the Radio 4 debate.
.......Concerning the questions you ask, I’m afraid that I personally am unfamiliar with attempts to connect Hayekian economics to sales and marketing.
However I did find the two sources linked below, one by economists I know, the other a recent dissertation, exploring possible connections, I hope they may be of interest.......
Other links worth following