Nice 🎉

Listening overvoingcing each other with Yeah, Yes, and other approval words, it's just so fucking annoying. I stopped listening after a minute and a half

You appear to be biased and promoting a false narrative, seemingly for perceived personal or ideological gain. However, consider this: the overwhelming debt burdens faced by all G7 countries, combined with rising homelessness, are symptoms of systemic issues exacerbated by government policies that have encouraged unsustainable levels of personal and public debt. This approach has fostered a culture of over-leverage, where short-term growth is prioritized over long-term stability. The consequences of these decisions are now becoming unavoidable, as the financial and social systems strain under the weight of decades of imprudent fiscal and economic policies.

The book is an interesting read, but Keynes' underlying assumptions are fundamentally flawed. To be clear, Keynes was a brilliant economist, but his theory contains several critical misjudgments. Economists have recognized these issues for years; however, governments often benefit from perpetuating these flawed assumptions because they justify expansive fiscal policies that enhance government control and revenue. This creates a cycle where theoretical shortcomings are overlooked in favor of political and financial convenience. "Notice that in the United States, the fiscal multiplier has diminished significantly, now estimated to be around 0.80 for every dollar spent. This means that for each dollar of government expenditure, the economy gains less than a dollar in output-a clear sign of diminishing returns. Such inefficiency highlights the irrationality of excessive government spending, often driven by political motivations rather than sound economic principles. Governments increasingly prioritize short-term political gains, such as attempting to buy votes through spending programs, over long-term fiscal responsibility. This behavior exemplifies the dangers of 'animal spirits' in government decision-making, where emotion and expediency override rational planning. The result is not only economic inefficiency but also the erosion of public trust in fiscal management."

You do not understand the Keynesian multiplier effect is the idea that government spending can have a larger impact on economic output than the initial amount spent. For instance, if the government spends $1 and it leads to $1.50 in additional GDP, the multiplier is 1.5. However, the effectiveness of this multiplier tends to diminish as government debt increases. Here's why: 1. Higher Debt Leads to Higher Interest Rates As government debt grows, investors demand higher interest rates to compensate for the increased risk of lending to a heavily indebted government. Higher interest rates can crowd out private investment, reducing the multiplier effect since the boost in public spending is offset by a decline in private sector activity. 2. Rising Debt Fuels Uncertainty High levels of debt may create economic uncertainty, leading businesses and consumers to save more instead of spending. This behavior, known as the Ricardian equivalence, occurs when individuals anticipate future tax increases to pay off the debt. If people save rather than spend the additional income generated by government spending, the multiplier effect diminishes. 3. Debt Servicing Costs Consume Fiscal Space As debt rises, a larger portion of government revenue is used to pay interest rather than fund productive investments or consumption. This reduces the effectiveness of fiscal stimulus, as spending on debt servicing does not stimulate demand in the same way as direct government investment or transfers. 4. Diminishing Returns to Government Spending When debt is already high, governments may have fewer productive projects to invest in. Spending on less efficient or wasteful projects reduces the effectiveness of fiscal stimulus, leading to a lower multiplier. 5. Inflationary Pressures Reduce Real Gains Excessive government spending in a high-debt environment can lead to inflation, especially if the economy is near full capacity. Inflation erodes the real value of additional spending, reducing the multiplier effect. 6. Dependence on Foreign Borrowing If a country relies on foreign investors to finance its debt, increased government spending may lead to capital outflows, currency depreciation, or increased interest rates, all of which undermine the multiplier effect. 7. Debt Threshold and Confidence Empirical studies suggest that when debt-to-GDP ratios exceed certain thresholds (commonly cited as 90%, though this is debated), the positive effects of fiscal stimulus diminish. High debt levels can erode confidence in a government’s ability to manage its finances, discouraging investment and reducing the multiplier. Example in Practice: Suppose the government spends $1 trillion in an economy with moderate debt. The multiplier might be 1.5, leading to $1.5 trillion in GDP growth. However, if the same economy has a debt-to-GDP ratio of 130%, the multiplier might shrink to 0.8 or less, meaning the same $1 trillion only generates $800 billion in GDP growth. This decline is due to higher interest rates, reduced private sector activity, and less efficient government spending. Conclusion: The Keynesian multiplier is not static-it depends on the fiscal and economic environment. As debt levels rise, the factors above interact to weaken the multiplier effect, making fiscal stimulus less effective and sometimes even counterproductive in highly indebted economies. Notice that in the United States, the fiscal multiplier has diminished significantly, now estimated to be around 0.80 for every dollar spent. This means that for each dollar of government expenditure, the economy gains less than a dollar in output-a clear sign of diminishing returns. Such inefficiency highlights the irrationality of excessive government spending, often driven by political motivations rather than sound economic principles. Governments increasingly prioritize short-term political gains, such as attempting to buy votes through spending programs, over long-term fiscal responsibility. This behavior exemplifies the dangers of 'animal spirits' in government decision-making, where emotion and expediency override rational planning. The result is not only economic inefficiency but also the erosion of public trust in fiscal management.

You failed to grasp Keynes’ fundamental flaw: his underestimation of the government’s vulnerability to 'animal spirits.' Keynesian theory posits that government intervention can stabilize the economy during downturns. However, it neglects the fact that governments themselves are not immune to irrational behavior, overconfidence, and shortsightedness-the very characteristics Keynes attributed to private sector actors. This flaw is evident in the case of the United States, where the national debt-to-GDP ratio has soared to over 130%. Instead of exercising fiscal discipline during periods of economic growth, successive governments have continued to expand spending and accumulate debt, driven by political expediency and overly optimistic assumptions about future growth and revenue. Thus, the problem lies not just in the theory but in its application. Governments, swayed by their own version of 'animal spirits,' often fail to implement counter-cyclical policies as intended, exacerbating fiscal imbalances rather than resolving them. This demonstrates that Keynesian reliance on rational and responsible government behavior is fundamentally flawed." This version connects Keynes’ concept of "animal spirits" with government behavior, illustrates it with the U.S. debt situation, and explains why it undermines Keynesian theory in practice.

You are incorrect: Keynesian economics, as developed by John Maynard Keynes, revolutionized economic thought, particularly in its advocacy for government intervention during economic downturns. However, like any economic theory, it has its criticisms and limitations. Here are some of the key problems associated with Keynesian theory: ### 1. **Long-Term Consequences of Short-Term Focus** - **Keynesian Perspective**: Keynes famously argued, "In the long run, we are all dead," emphasizing the importance of addressing immediate economic challenges. - **Criticism**: Critics argue this short-term focus ignores potential long-term consequences, such as inflation, public debt accumulation, and inefficient allocation of resources. ### 2. **Risk of Inflation** - Keynesian policies, such as increased government spending and monetary expansion, can lead to demand-pull inflation if applied excessively, especially when the economy is near full employment. - Persistent use of such policies may create an inflationary spiral, eroding purchasing power. ### 3. **Crowding Out Effect** - Increased government spending might lead to higher borrowing in financial markets, driving up interest rates. This can "crowd out" private investment, counteracting the intended stimulus effect. ### 4. **Over-Reliance on Government** - Critics argue Keynesian theory overestimates the government's ability to effectively intervene in the economy. - Inefficient government spending, corruption, or politically motivated policies can lead to wasteful projects and misallocation of resources. ### 5. **Assumption of Rational Government Behavior** - Keynesian theory assumes governments will implement counter-cyclical policies responsibly (spending during recessions and saving during booms). - In reality, governments often fail to reduce spending or raise taxes during economic expansions, leading to unsustainable debt levels. ### 6. **Limited Effectiveness in Supply-Side Shocks** - Keynesian policies are demand-focused and may not address supply-side issues such as oil crises, structural unemployment, or productivity stagnation. ### 7. **Challenges of Timing and Magnitude** - Successfully implementing Keynesian policies requires accurately timing interventions and estimating the magnitude of spending needed. Delays or miscalculations can exacerbate economic problems. - Political and bureaucratic delays often mean that fiscal stimulus arrives too late to be effective. ### 8. **Dependency on Multipliers** - Keynesian theory relies on the concept of the fiscal multiplier, which assumes that government spending stimulates more economic activity than its cost. - Empirical evidence on the size and effectiveness of multipliers varies, leading to debates about the real impact of fiscal stimulus. ### 9. **Neglect of Supply-Side Factors** - Critics, especially those from supply-side and classical economic schools, argue that Keynesian theory underemphasizes factors like incentives for production, innovation, and entrepreneurship. ### 10. **Unsuitability for Open Economies** - In open economies, fiscal stimulus may "leak" through imports, as increased demand boosts foreign production rather than domestic output. - Exchange rate fluctuations and global capital movements further complicate the effectiveness of Keynesian policies. ### 11. **Assumption of Idle Resources** - Keynesian economics assumes the presence of idle resources (unemployed labor and unused capital). If the economy is already operating near capacity, additional spending may simply lead to inflation rather than growth. ### 12. **Behavioral Assumptions** - Keynesian theory assumes that individuals will respond predictably to government interventions (e.g., increased spending leads to higher consumption). However, real-world behavior may differ, such as through the Ricardian equivalence effect, where individuals save more in anticipation of future taxes. ### Conclusion While Keynesian economics provides valuable insights into managing economic downturns, its limitations highlight the importance of balancing short-term interventions with long-term sustainability, considering both demand- and supply-side factors. These criticisms have led to the development of alternative approaches, such as monetarism, supply-side economics, and the New Classical school, which aim to address these shortcomings.

It is inherently offensive to have fake people who are inhuman robots talking about books they dont understand in our language they merely regurgitate. This is a profound waste of time and I encourage you to judge your experiment, and end it. Merey Christmas

Fascinating how Keynesian theory fails at the point where most economic theories fail, That is, IT DOESN'T CONSIDER CLASS INTERESTS. There are many experiences in the 20th and 21st centuries, in which the economy was running positively on Keynesian principles and theory, HOWEVER, THE OLIGARCHIES, PARTICULARLY THE FINANCIAL CAPITAL, NATURAL RESOURCES EXTRACTION CAPITAL, CONCENTRATED LANDOWNERS, REAL ESTATE DEVELOPERS, EXPORTERS, ETC, plus other sectors of concentrated capital, TORPEDOED THE ECONOMY, to stop the spreading around of income and wealth, in this way RETAINING THE CONCENTRATION OF WEALTH IN THEIR HANDS. This is the crucial issue: When you don't consider class struggle, FROM WHICH CAPITALISM (just like any other system so far known for humanity) CAN'T SUBTRACT ITSELF, you are leaving out the MOST IMPORTANT FACTOR IN ECONOMICS AND POLITICS. A FINAL CONSIDERATION: Keynesian economics worked well in the US during the depression and Europe after WWII, for 2 or 3 decades. Then, when the slowdown and stagnation of the Soviet Union (the late 70s) started to influence the international political scenario, Keynesian economics was sent to the dustbin of history. Why? Because at that point in history, there was no longer a necessity for the Capitalist and Imperialist countries to increase the standard of living of their workforce, since they didn't have to COMPETE with the USSR anymore. At that point, economics in the capitalist countries switched priorities towards lowering wages to divert that money towards financial investment on the dot-com bubble, the real estate bubble and the energy bubble, all of which ended up imploding during the 1999-2001 period. However, that implosion at that point, had no important consequences since the USSR had already ceased to exist. The concentration of wealth system promoted by the US all over the world, could fix its shortcomings through war, the conquest of geostrategic-military positions in the Middle East, and the stealing of oil, gold reserves and many other resources from other countries. The main issue in economics moved towards KEEPING THE AMERICAN DOLLAR AS THE ALMOSY ONLY CURRENCY FOR INTERNATIONAL COMMERCE. This has allowed the US and eventually Europe and Japan, to take exorbitant amounts of debt, which all of them will only be able to pay through promoting more war and at a larger scale than ever. This explains the predicament the whole world is trapped in nowadays.

Generated by Notebook LM? 😂

AI man's voice is too annoying. I had to stop listening.

Hey! At least get voices right? He is clear & easily understood, squeaky is much harder to understand & generally annoying ...

A similar test is given in a scanner darkly.

one of the best books i ever read. try this title instead : *the world as dharma and karma.*

The sad reality, schopenhauer has no influence on psychotherapy that it is practiced in the west to help patients with psychiatric problems. Why not universities and Clinics, apply his methods in psychotherapy ,”at least for the receptive patients of his ideas

Schopenhauer uses the term the will very vaguely. Anyone could use the term spirit, and he will achieve the exact same result. is he trying to be politically correct with the use of term, the will , I completely agree with him on the fact that animals have way more a-priori systems. from the second they are born they have way more understanding of their surroundings and way more able to handle the world compared to a human baby Human baby is equipped with tools to interact emotionally with his parents, and he is completely clueless of anything else is not that so amazing Thanks

Sounds like the Trump regime. It’s over for democracy in the USA.

Very good choice Describes the unfortunate human nature

Sending it to every one i know will appreciate it😊

How is this not have 1000s of visits😮???? Sad

It’s definitely my pleasure to have discovered your podcast. It is extremely accurate and it is such a pleasure to hear that you understand the core problem that we’re at. Very rare

Great

Lots of benefit would be achieved if kant’s ideas are taught in schools

The author has a nice imagination and offers a glimpse into human nature.

Considering that The Jews gave the world the Ten Commandments (lit. Ten Statements), more than half of which concern the moral values Kant is extolling, he has some nerve speaking ill of Judaism. Regarding his his concept of evil arising from within: That is the yetzer hara (evil impulse) described by the Jewish sages of the Second Temple period (Before Kant? Before Christ). I wonder what other Jewish ideas he stole? The Categorical Imperative (I actually do not know. Did he)?

Thank you for this great work. I enjoyed every single episode. What does it take you to look into the book that I wrote in 2021 it is the first book the merged the brain social structures as we know it now with philosophy if you are interested, please let me know. The name of the book is the social brain an operator ‘ s manual.

Please do of classic sci-fi books 📖

Can you change the LM to not do "active" listening? Interrupting each other with filler words is pretty distracting

Games: a form of self test. --also as a scientist doubt and challenge is ABSOLUTELY the first thing we do before most tell anyone of any discovery there is almost always a trial for evidence and proof. - I’m disappointed ☹️ I love linguistic study and this felt primitive but not in a good way.

your alembication of hegel' s chief ideas is much clearer than hegel's horrid writing style

Mmm, PI time. Yes, danke. Blue and Brown bks, too, pls.

Hello, Books and Bytes! As a regular user of ChatGPT for research and casual chats, I found this AI-generated conversation between two learned hosts very engaging and easy to follow. The speakers had a clear tone and a natural cadence, creating a surprisingly lifelike feel. Adding a few strategically placed pauses and some subtle conversational interruptions could make it even closer to real-life dialogue. Beyond these minor tweaks, I have to say I was genuinely impressed and even briefly fooled into thinking these were real people! It was only after checking the description that I realized they were AI-generated - well done on that front! As for the review itself, it was excellent. It brought back fond memories of reading Dostoevsky’s novel years ago, and it clarified some dynamics between the siblings that I’d found confusing, especially regarding how these relationships influenced the trial’s outcome. So, big thumbs up and an “A” for effort! I'm looking forward to more of these AI-driven book reviews - they’re a fantastic way to gain insights on literature despite a busy schedule. Thanks again, and keep up the great work!

A (surprisingly effective) summary of Heidegger by AI (ie a thing not Dasein) is peak irony.

please do it from some SCi fi books as well. And Albert camus works please🙏

Having heard how fairly and well you've done this book, which I know, I feel I can trust you on those I know not. I will be back.

This was brilliantly done guys - I feared a caricature but this was splendid. I've long thought we need an abridged version - Burke's sparkling passages of continued salience.

English ideas perfected in America's founding (which Burke supported) and parodied in France. The French eh? Home of bad ideas from Rousseau to Foucault. Burke would've known how misguided we were in Iraq and Afghanistan (and I would have too if I had read Burke back then).

wait , is this conservation generated by AI? it's pretty natural lol

Nice my hope you will grow

This turned out to be a pretty great summary!

Great thanks - what for follow up ?

very nice presentation very easy to follow, please keep talking about Kant

I’m a big fan of this work 👏🏻

This is an A.i podcast

Thank you for sharing, but there’s an error where the section repeats on justice repeats.

Just started listening and the duo is very cool. 1st one here!

Adam Smith was a hack for the Glasgow mafia against the London mafia.

I already hate AI