Deck the Halls with Macro Follies

[@GrndMstr1337]

If this album were real I would actually purchase it...

[@MTCoblivsicas12345]

Boost aggregate demand

[@slenderfan-101j.g.4]

If only we had the SUPPLY to fill the DEMAND 😁😁

[@fruityfriend]

me too

[@diegocolomes]

min 3:00 Hayek's production triangle hanging on the tree, haha that was genius.

[@kingj7606]

I know lol, there must be more of these videos

[@Illyrien]

If there was a supply of this, I would demand it and buy it with my production!

[@dindi6986]

Law of Say in its truly form :3

[@oromedenep]

Another year BEGGING for this album to be released

[@Steffen10x]

"Enjoy the greatest collection of economic holiday hits ever aggregated". Hehe^^

[@bernhardkaindl7660]

I wish they actually sold this album. I would have loved to have this wonderful collection for our christmas celebration at home.

[@martonk]

When the little girl hung the Hayekian triangle on the tree, I just fell out of my chair with laughter

[@teatimewithabdul]

ROFL! Ben Bernanke as Santa! This video is pure genius. Just absolutely marvelous.

[@joshuagathright9313]

These need to be complete songs! I would buy this in a heartbeat.

[@benpva16]

The funny thing is, this video is now ten years old, meaning that depending on the exact age of the girl, she'll be needing that college tuition really soon! 😂

[@perfboi69]

Oh my god. WHY ISNT THIS AN ACTUAL ALBUM! haha

[@04shneierl001]

how much would we have to donate via a kickstarter type thing to make this cd a reality

[@elizabethyoung5336]

Definitely. I can think of 3 people I want to give this too!

[@johnlocke1946]

I'm down.

[@vibhuvikramaditya4576]

ALL i can say is my willingness to pay is much Higher for this is, than my rate of saving

[@samahirrao]

@@vibhuvikramaditya4576 same here.

[@coyote778]

Oh GDP, oh GDP, what can we do to grow thee?

[@JohnPapola]

Hi Saul. Actually, it's my dad! And yes, he's a Santa Fed Chairman. After all, only the Fed has the power to create money and nominal demand out of thin air!

[@jdenney]

With close to 240,000 views... I really am wondering why EconStories doesn't make this a full album.

[@johnlocke1946]

GOOD QUESTION!

[@joepeeler34]

I think these videos are great because it introduces a whole lot of people to these economic ideas who might have otherwise had little interest in economics. The Hayek-Keynes battleraps have been seen by millions. I think that is fantastic!

[@RadicalDiscourse]

We'll try to write a whole album for next christmas. In the meantime, you can buy other cool stuff at the EconStore: store.econstories.tv

[@mickmickymick6927]

Lol that went well

[@johnkennedy4365]

Come on do it

[@mmmcounts]

Will you try again, please?

[@olivermorland5226]

Firmly sitting in the Hayek camp there. But what's the point of this video if this album doesn't actually exist!??!!?!

[@KoopinMafia]

Oliver Morland because it is funny. And I wish it existed - I would buy it for sure XD

[@Hanksand]

Alexander Adams They should produce so we can buy, demand is driven by supply!

[@Shreendg]

I'll pay $10 for the album. Or maybe I'll just save it and pirate it.

[@dekatholiekebelg]

This shouldn't be a 'fake' holiday album :3

[@0000tigers]

Christmas 2021. Still relevant.

[@nickh1286]

If this was real I would totally buy it!

[@rekamlias1]

THANK YOU. Many people cannot get their head around economics. I know the average American can not learn economic in a single day it takes a whole weekend. Then above average Americans can learn basic economics in 30 minutes but we are so short on above average Americans this decade we need more videos. ECONSTORIES I demand more great work!!!!!!!!!!!

[@d1ngopwns]

"If you want a recovery - Buy toys!" I just lost it there. ;-D

[@MariaSaysNo]

Go Em! You totally rocked it out, sweet little girl! She's priceless!

[@brianmerion]

Ben Bernanke is Santa Claus! Confirmed!

[@Shreendg]

I thought it was Krugman.

[@clementarambourou1341]

No, it's Stiglitz!

[@cmcfall3747]

Wrong. It's Rafa.

[@MisesCelebrations]

Bravo!!!!!! J.B. Say was never so well summarized.

[@Entheobotany]

Yeah can we crowdfund this please?

[@maninthewilderness4]

Wow! That Jean-Baptiste Say sure was perceptive! He had real foresight! He had real vision! If I had the opportunity to meet him, my first words would be "Oh Say, can you see!"

[@dylanmeisner500]

Is the macro santa Ben Bernanke ??

[@Andreas4696]

Perhaps Paul Krugman.

[@103213able]

For sure Mr Krugman no doubt about it

[@cmcfall3747]

Sick of telling ya man. It's Rafa Benitez.

[@russglish]

The Bernanke at the end made it better when I thought it couldn't get any better!

[@thebestcdub3041]

Is that Ben Barnanke?

[@cmcfall3747]

Still wrong. It's Rafa.

[@coondawg]

This should be viral. Clever, well done and right on the money!

[@Purplelasagna6754]

The picture from 2:15 onwards is not Jean-Baptiste Say. It is Jean-Baptiste Léon Say, who was a French statesman.

[@MankarCamoran8799]

+Thomas O'Brien well it's his grandchild

[@jessicahhhhx98]

"and maybe we can even pay for my college tuition" aww Emerald

[@cero2277]

Why isn't this real?

[@thekarenlovesbtr1]

Emerald you are the cutest little girl there!!!! i love you soo much im soo proud of you Em!!

[@chance1240]

Who's watching this during the 10% inflation rate in 2022?

[@KevinLeeMorton]

Soo good you guys. And now we know Hayek sings with an American accent!

[@SergeantExtreme]

0:22 "Corporate Gold" pun. LOL. Did anyone else notice this?

[@OmarPR100]

Good to know you guys are still alive, you haven't possted in so long i thought id never see another video from you guys.

[@TacticalTypos]

So was the last song, from "Hayek," one of the included "fallacies" or a "saving grace?"

[@PrinceEWS]

Saving grace.

[@fmayan27]

Of course they would never attribute any fallacies to hayek, they're too busy strawmanning Keynes. The econ stories page is written by economists from the mercatus Centre (funded almost entirely by Koch industries and the tea party), with Russ Roberts (of cafe hayek fame) being in charge of writing a debate between hayek and Keynes.. Pretty dishonest

[@TacticalTypos]

fmayan27 Dishonest or reasons for one to be skeptical?

[@fmayan27]

A bit of both

[@s13iLLuminati]

I have no words for how much I love this video. Please make more of these, you guys are geniuses!

[@garibaycamarena]

You guys should actually do this for real, at least as an EP

[@ferrarkumar1103]

Underrated video

[@kfuksa1]

OMG. Of course investment is paving our way to good future. Keynes would never argue othervise. The problem arises when investment does not fit savings. Keynes was right and I recommend everyone to read him before making judgement. This video is funny, it is. I laughed a lot. But it is also big and (i think) purposeful misinterpretation...

[@vibhuvikramaditya4576]

I can't understand why, when mostly everyone agrees on that investment without savings causes a problem, then why is the only thing being taught at undergrad, grad schools is Keynesian Economics

[@ruslanpushin2550]

I. Can't. Stop. Listening. Help. Please do full versions!

[@TysonNeil]

If this was a real product, I'd buy it and a few for gifts for the economically inept that I know. It would get more than Christmas play.

[@RafaelDomenech01]

Absolutely brilliant!! Tanks a lot.

[@nadrojohk]

i would buy this shit

[@2ndRealm]

Awesome! Hayek would be proud!

[@IanBerwick]

The law of markets tells us why, growth is driven by supply

[@rodrigodiaz7167]

WRONG. If you supply unwanted things, nobody buys them and you generate a crisis. Malthus was right (and he didnt say what this video puts in is mouth). Read the comment i just made.

[@johnmontes8867]

Rodrigo Diaz Yes it can happen but in an environment with higher interest rates to attract depositors more REAL capital is freed up for more stable investment and production. Additionally the higher interest rates deter reckless malinvestment.

[@rodrigodiaz7167]

How is that related to what I said? I never even spoke of external financing. Even then, the only thing that would "solve" the problem is learning from mistakes and stop financing that investion (interests are not really related here). But that doesn't mean crisis won't happen in first place.

[@ChristEnabled]

Here, here! Please Econstories, please, please make this album!!! I will play it at my next Christmas party!

[@petergambrill]

They are both right, increased demand will increase output when an economy is below is potential output but yes it's the supply side that determines that potential. It's a matter of short run vs long run, that's the accepted consensus. This video seems to draw a false dichotomy between these ideas to make a largely political point...which is a shame as the Keynes vs Hayek rap battles were very good.

[@evankant5965]

You are absolutely right, Econ stories should not have taken sides, as so clearly they do.

[@Entheobotany]

If increased demand by itself increased production, wouldn't that necessarily go against Hayek's position?

[@SergeantExtreme]

Wrong Peter. You're forgetting about imports. Now, when the majority of our demand is "made in CHINA" products, that increase will do nothing but line the pockets of a few rich. You seem to draw false pretenses yourself by forgetting to add this one crucial point: THE PRODUCTS MUST BE MADE IN THE USA. Therefore, until 100% of all products you buy are exactly that, frivolous spending is idiotic. And THAT is the point I think this video is trying to make.

[@americanman81]

Ultimately what drives the economy is driven by people's behavior, and demand side economics relies on people acting in an immoral fashion to grow the economy because it promotes consumerism.

[@perfboi69]

I'll free your markets if you stimulate my demand ;)

[@fpm09nandita]

Spot on.. you resonated the thought I shared with some colleagues last week abt this book which criticizes Smith's work as foundations of economics destroying morality, without even referring to his work on moral sentiments.. i think people fail to realize that one cannot completely adopt one theory and stick to it and look up to it for all explanations..

[@rsmithjbhs]

If EconStories is right, that under-consumption is a myth and that Keynesian stimulus is snake oil, how would they explain decades of slow growth in Japan, despite their high rates of savings?

[@mattr271]

A high savings rate means resources are freed up in the private sector to shift from consumption (retail/late stages of production) to investment and production (capital intesive, early stages of production). This is important because you have to produce and invest in order for the economy to grow (Say's Law). *When the government crowds out the private sector with enormous amounts of government debt, those resources (the stock of resources/stock of savings) are consumed or mal invested and thus wasted. For example if the government uses debt to fund more welfare/consumption the return on investment is 0, and economic growth stagnates because those resources/time are wasted.* There has not been a period of "under consumption". Japan currently has the highest debt to GDP ratio in the world and it will need to reduce it in order for resources to be freed up for investment and growth.

[@weezybabylol]

Matt R That, my friend, was beautiful.

[@alfredjohnson3642]

the question is not who is right, is WHEN? in the short term(1-5 years) demand is what determinate grow in the medium term(10-25 years) supply is what determinate grow in the long term(25-50 years) saving, education and good goverment is what determinate grow, Japon did not understood this and only concentrate in the long term. Western world did the short term well, but had problems with the long term(savings) For an economy to grow you need to improve all the aspects, not just one

[@mattr271]

jose paulo hernandez guerrero But if the recession was caused by government funny money, then pouring more gasoline on a gasoline fire only makes things worse. A recession in the Austrian view is simply a shift from unproductive mal investment, consumption, speculation of the boom period to productive investment. If the government crowds out this process with more money printing and or spending sure we might have full employment but it will just be another Japan with falling wages. Full employment and job creation are a means, not an end.

[@alfredjohnson3642]

Matt R that is exactly what the Phillips Curve explains low unemployment causes high inflation, that is why there is an ideal rate of unemployment which is about 5% in Canada. The way to solve that is by increasing the minimum salary which will increase unemployment and then reduce inflation. The new unemployment will create lower GDP, which you will control it by using expansionary fiscal policies. I know this will increase government debt, however you need time to correct this, after some time when the economy fix itself, you can then increase taxes every year until the debt is over. The mistake was using a monetary policy to pay their debt because that is exactly why the inflation happen. In conclusion countries in resesion shouldn't just print money to pay debts they have to either use expansionary fiscal policies or do nothing and wait for economy to recover. Monetary policies only work when they are anticipated, and everyone knows that central banks love to do that when they have debts and if you don't believe me ask Zimbabwe. BTW I just took 2 year ECON clases at collage so you may know more than me, but I like talking of economics.

[@chriswhite9957]

This is pure genius.

[@stevedapirate5]

Is santa supposed to look like paul krugman?

[@drshlotzkin]

Ben Bernanke, now former Fed chairman :)

[@jeddakjohn5345]

Brooks Gorden Yes. Only person whom can create presents (money) out of thin air is Santa ( Paul Krugman whom advocates inflation)

[@samiezzi6143]

Tbh Ben Bernanke and Paul Krugman look like siblings...

[@JohnPapola]

Thanks for the support!

[@jacobeisner1697]

If production = economic growth, then why is it not the same for youtube? So, in other words, this channel should create more videos quicker. Then it will get more viewers and subscribers.

[@419fish]

Because production is the real value to consumers. 100 terrible videos is less production than one high quality video. producing one diamond is more production than producing a ton of coal.

[@PerfectTechno101]

+419fish poor example, as 1 ton of coal can be more useful and worth far more than one diamond to someone in the cold and bitter winter

[@MankarCamoran8799]

+Alderon Tyran that's what it called 'paradox of value'

[@luvstruckfairy]

Emerald you are growing up way too fast! Im so proud of you angel!

[@kvnd7331]

what about Robert Solow's "Growth theory"? Fuck this

[@MrOchmanek]

This is just brilliant! Beautifully produced. Great job...now if this were only playing on every screen in Washington we might stand a chance!

[@HT-rq5pi]

is that william lane craig doing the voice over? the fuk?

[@IDontLiveTodayJH]

+Walter White I knew I recognised that voice, I just couldn't place it.

[@FridaysCall]

I LOVE THIS. i wish i had one friend that cared about economics to share it with. im watching again!

[@digitalpl5409]

I agree that productivity growth is great. But we aren't starting our economy from scratch, are we? Obviously lowering consumption will have a negative impact on jobs, which will have a negative impact on other things. Quite funny phrase from Hayek about borrowing savings - sorry but that's not how money is created in modern economy. Businessmen don't borrow granny's savings, money they borrow are created out of thin air, they are not from someone's savings. But apart from that, it is a nice song.

[@ClintDecker148]

By savings, I think they mean the money in a bank account (which gets loaned) and the money you invest. You don't consume with either.

[@fmayan27]

Don't expect nuance from this video. It was produced by the mercatus Centre (aka that one think tank whose entire funding base is from Koch industries), which has a very clear hayekian and Friedman leaning. Their videos are notorious for strawmanning demand side economics and mischaracterization of Keynesian theory

[@johnlocke1946]

fmayan27 How, pray tell, is the Keynesian argument misconstrued here? The only thing that's missing is all the accompanying word salad used to rationalize and justify the underlying principles of Keynesianism. The actually underlying principles themselves seem pretty clearly expressed here. Additionally, ad hominem misdirection is not the same thing as a reasoned rebuttal. If you have one, please present it. At this point, it seems you don't. Plus, these are some darn good renditions! I like it.

[@fmayan27]

Macro policies and micro advice are misconstrued here. Keynes's ideas of demand side growth and government investment had nothing to do with individuals borrowing themselves into debt to stir the economy.

[@fmayan27]

Vickrey elaborated on this in his Nobel work but essentially the hayekians pretending as though Keynes's advice on fiscal deficits was meant in anyway to apply to individual consumption is grossly distorted. Whoever made this video knows very well that but they are choosing to straw man Keynes instead.

[@RussellNelson]

Robert, think about it this way: when you save, that money goes into a bank. The bank loans the money out to businesses, who spend it to create products. The money that gets spent creates more consumption. Consumption rises to meet the supply. But first you have to have savings in order to have spending. Why is that not obvious to EVERYONE?

[@fmayan27]

This video should have the disclaimer that it is produced by economists from the Mercatus Centre, aka a libertarian/tea party "think tank" whose funding base is almost entirely from the Koch family. If you are expecting a fair depiction of either demand or supply side economics, don't look here. If you're looking for strawmanning and complete mischaracterization of Keynesian economics, however, this is the video for you! Very irresponsible of the video source to not reveal its hayekian roots or its affiliation with the Kochs

[@johnlocke1946]

Have you heard of the term "ad hominem"? If you have a valid critique of the ideas expressed, please present it. Whether or not the idea comes from "the right kind of people" in your opinion is irrelevant. Resorting to ad hominem misdirection only demonstrates that you do not have a meaningful rebuttal to the actual ideas presented here.

[@fmayan27]

You mean aside from the fact that they completely mischaracterize keynesianism?

[@wvmcc82]

fmayan27 KKKOCHTOPUS KKKONSPIRACY!!!!! Shut up.

[@wvmcc82]

I don't go around lefty sites and lefty videos saying "GEORGE SOROS INDIRECTLY FUNDED THISS!!@ OMG!!!`11" because it doesn't fucking matter. What matters are the ideas present.

[@d4n4nable]

+fmayan27 Proclaimer: This video presenting free market ideas is produced by free market advocates!

[@Ephisus]

This is the best thing on the internet.

[@fmayan27]

Wow. More strawmanning of Keynesian economics, but given that emergent order 's economics advisor on its videos is Russ Roberts of cafe hayek (and tea party) fame, who can be surprised. Asking a hayekian to depict keynes is pretty dishonest

[@fmayan27]

Looked more into the economic advisor for econstories... Mercatus Centre (funded almost entirely by the koch brothers) economists dominate the bunch. At least give viewers a heads up or disclaimer of the source?

[@stijnservaes]

+fmayan27 why should they? It's just a song. It's not some important report to congress

[@MagicByEli]

Right. I love your other videos by the way, particularly the rap battles. Those are awesome and I've shared them with a lot of my friends.

[@trekhead1]

I love all this Econ talk

[@JeffreyTuckerBTC]

The trumpets are hilarious!

[@scottmuck]

Best. Video. Ever.

[@pipewerkz]

"In this defunct, 1820's original" Great video.

[@YankeeDoodleDandy]

Oh man I enjoy this way too much

[@jhodapp]

This is brilliant! I LOLed several times through out. The only reason why this is hilarious (besides being really creative) is because it's so true!

[@wafflestreetbook]

John, you've hit the key point. While the Classicists and Austrians are willing to admit that monetary factors (both hoarding and money destruction) can exacerbate cycles, they also maintain the primacy of the structure of production in the creation of wealth. Keynesians, in contrast, are generally so preoccupied with liquidity preferences that they ignore these integral determinants of output.

[@jonatanlaos601]

This is music to my ears.

[@preetiasthana894]

You guys are so amazing.

[@d1ngopwns]

Would buy that album!

[@TheHaylio]

Literally made my Christmas; thanks guys :)

[@bosshoggett]

This is Brilliant.

[@TheTomGPalmer]

You guys have outdone yourselves. This is outstanding. I've shared it with many friends. Keep it up. (And thanks for introducing people to the great J.-B. Say, as well.)

[@danewheeler]

I would love for these to become full songs explaining a broader view of the stances on each of these economic geniuses. This would be a fantastic way to explain the concepts. Great work though guys. I loved it.

[@Trepur349]

thanks for taking the time to clarify this point with me :)

[@whoareyou2me]

You guys are hilarious and clever. Merry Christmas.

[@MiaKaitlynDedicado1]

OMG!! Emerald!! :D

[@FletchforFreedom]

I've never had to lie. I've not only been an economist since 1984 and a researcher in good standing with the AEA for most of that time, I've taught the subject. Don't pretend that you are in the economics profession. Literally no one would ever believe it.

[@srichman]

Ingenious!

[@IMfrederick]

I really enjoy this: entertaining and to the point!

[@TheRealRaz909]

BAHAHAHA GREAT STUFF!! Please start making more guys.

[@JohnPapola]

Thank you!

[@Orenstein123]

I really hope this is a real cd. God that would be amazing

[@JamesClement]

Awesome video. Thanks!!

[@MrVaun17]

these movies are awesome, thank you EconStories these are really fun to watch. And is santa suppose to be ben bernanke? lol

[@pulmonarykid123]

Watching this video is now a Christmas tradition in my family. We gather around the fireplace and read A Christmas Carol, the story of a wealthy statist who objects to voluntary charity because of his expectation that the government should provide for those less fortunate. Later does he realize, taxation and subsequent redistribution of wealth will lead him down the road to serfdom.

[@steampunkerella]

Pretty nice set

[@JohnPapola]

Trepur, this is a very smart critique. There's two counterpoints. 1. At any given time it's very hard to know if rates are artificially. Consider how few people recognized the housing bubble in 2005. 2. There's a kind or prisoner's dilemma. If a boom is happening due to excessive credit, many people get pulled because if they don't they will lose. Investment firms were losing customers if they didn't offer similar returns. People felt like chumps for NOT buying a house.

[@Xenostars]

Brilliantly put, as always. My only complaint about EconStories is the fact that we don't hear from them more often!

[@datavortex]

Brilliant!