Lecture Macro 13 Exposition and Critique of Keynesianism

George Reisman’s Pepperdine Lectures. These lectures are posted as an augment to the lectures available at George Reisman’s Program of Self-Education in the Economic Theory and Political Philosophy of Capitalism (https://www.stephankinsella.com/reisman). These lectures were delivered by Dr. Reisman over a number of years at Pepperdine University, grouped into “Micro” and “Macro” topics. The Micro course was designated MBFE 657 and the Macro course BSM 477. This playlist contains the "Macro" lectures. For more information, see https://www.stephankinsella.com/reism...

"This lecture runs almost three hours and pretty much follows the organization of Chapter 18 of my book Capitalism: A Treatise on Economics, which chapter is also titled “Keynesianism: A Critique.”

Here’s the contents of Chapter 18 and also the video: CHAPTER 18. KEYNESIANISM: A CRITIQUE 863

1. The Essential Claims of Keynesianism 864 Neo-Keynesianism 865

2. The Unemployment Equilibrium Doctrine and Its Basis: The IS Curve and Its Elements 867 The Grounds for the MEC Doctrine 875

The Keynesian Solution: “Fiscal Policy” 876 3.

Critique of the IS-LM Analysis 879

The Declining-Marginal-Efficiency-of-Capital Doctrine and the Fallacy of Context Dropping 879

The Marginal-Efficiency-of-Capital Doctrine and the Claim That the Rate of Profit Is Lower in the Recovery from a Depression Than in the Depression 881

The Unemployment Equilibrium Doctrine and the Claim That Saving and Net Investment Are at Their Maximum Possible Limits at the Very Time They Are Actually Negative 881

The Marginal-Efficiency-of-Capital Doctrine’s Reversal of the Actual Relationship Between Net Investment and the Rate of Profit 882

The Contradiction Between the Marginal-Efficiency-of-Capital Doctrine and the Multiplier Doctrine 883

A Fall in Wage Rates as the Requirement for the Restoration of Net Investment and Profitability Along With Full Employment 8 Wage Rates, Total Wage Payments, and the Rate of Profit 884

Critique of the “Paradox-of-Thrift” Doctrine 884

Critique of the Saving Function 885

Critique of the “Liquidity-Preference” Doctrine 885 4. The Economic Consequences of Keynesianism

887 The Growth in Government 888 Budget Deficits, Inflation, and Deflation 888

Keynesianism and Economic Destruction 889 Why Keynesianism Is Not a Full Employment Policy 890

Keynesianism Versus the Rate of Profit: “The Euthanasia of the Rentier” and “The Socialization of Investment” 891