Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
17Activity
0 of .
Results for:
No results containing your search query
P. 1
John Maynard Keynes the General Theory of Employment Interest and Money a Critique by Brett DiDonato

John Maynard Keynes the General Theory of Employment Interest and Money a Critique by Brett DiDonato

Ratings: (0)|Views: 1,702|Likes:
John Maynard Keynes is without a doubt the most influential economist of the last 100 years. Keynesian economics is taught at every major University and practiced by every central bank throughout the world. With that being said how many people in the general population, let alone economists, have actually sat down and read Keynes’s most famous work, The General Theory of Employment, Interest and Money? Our guess is not many. That’s why we decided to take the time to explore this work ourselves and what we found was quite astonishing.
John Maynard Keynes is without a doubt the most influential economist of the last 100 years. Keynesian economics is taught at every major University and practiced by every central bank throughout the world. With that being said how many people in the general population, let alone economists, have actually sat down and read Keynes’s most famous work, The General Theory of Employment, Interest and Money? Our guess is not many. That’s why we decided to take the time to explore this work ourselves and what we found was quite astonishing.

More info:

Published by: soyouthinkyoucaninvest on Mar 24, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

09/20/2013

pdf

text

original

 
John Maynard Keynes: The General Theory of Employment, Interest and Money
A Critique by Brett DiDonato (brett.didonato@gmail.com)This is a six part critique of John Maynard Keynes and his 1936 book TheGeneral Theory of Employment, Interest and Money. This document is aconsolidation of articles originally written for the financial blog
So YouThink You Can Invest?
Introduction
John Maynard Keynes is without a doubt the most influential economist of the last 100 years. Keynesian economics is taught at every major Universityand practiced by every central bank throughout the world. With that beingsaid how many people in the general population, let alone economists, haveactually sat down and read Keynes’s most famous work, The General Theoryof Employment, Interest and Money? Our guess is not many. That’s whywe decided to take the time to explore this work ourselves and what wefound was quite astonishing.A brief disclaimer: We are not an economist, though we have read manyeconomics works. Who and what we are is someone that knows how to
 
disseminate well thought out arguments from utter nonsense and we aretired of what passes for economic insight by supposed experts. We feel thatthe arguments presented herein can stand on their own merits.Our critique is divided into six parts, which are as follows:
Part 1: Keynes Hated Stock Markets
Part 2: Was John Maynard Keynes a Gold Bug?
Part 3: Keynes's Guinea Pigs
Part 4: Keynes Promoted the Destruction of Free Market Capitalism
Part 5: Keynes on Government Stimulus, Digging Holes (with thoughtsfrom Paul Krugman and Henry Hazlitt)
Part 6: Keynes: Let’s Destroy the Value of Your MoneyAs a point of reference, you can read the full text of The General Theory of Employment, Interest and Money online for free athttp://www.marxists.org/reference/subject/economics/keynes/general-theory/Now that that’s settled, let the criticizing begin…
Part 1: Keynes Hated Stock Markets
Keynes held some very surprising views in regards to stock markets. You arenot likely to see these quotes highlighted by modern economists.Chapter 12, Section V:
 
Of the maxims of orthodox finance none, surely, is more anti-social than the fetish of liquidity, the doctrine that it is a positive virtue onthe part of investment institutions to concentrate their resourcesupon the holding of “liquid” securities. It forgets that there is no such thing as liquidity of investment for the community as a whole.The social object of skilled investment should be to defeat the dark forces of time and ignorance which envelop our future.This battle of wits to anticipate the basis of conventional valuation afew months hence, rather than the prospective yield of aninvestment over a long term of years…For it is, so to speak, a gameof Snap, of Old Maid, of Musical Chairs - a pastime in which he isvictor who says Snap neither too soon or too late, who passes theOld Maid to his neighbor before the game is over, who secures for himself when the music stops.
Keynes' words seem even more relevant today than they did in his day.Stock market yields are now far below their historical average. Dividends, orthe expected increase in dividends, are practically ignored by stock analysts.Also, when is the last time you heard an economist note the downsides toliquidity?Chapter 12, Footnote 5:
 It is said that, when Wall Street is active, at least half of the purchases or sales of investments are entered upon with anintention on the part of the speculator to reverse them the sameday. This is often true of the commodity exchanges also.
Keynes would surely be appalled by today's market activity. We are now aworld of high frequency trading between computers that hold positions for afraction of a second at a time.
Chapter 12, Section VI 
Speculators may do no harm as bubbles on a steady stream of enterprise. But the position is serious when enterprise becomes thebubble on a whirlpool of speculation. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. The measure of success attained by Wall Street, regarded as an institution of which the proper social purposeis to direct new investment into the most profitable channels interms of future yield, cannot be claimed as one of the outstandingtriumphs of laisserz-faire capitalism – which is not surprising, if I am right in thinking that the best brains of Wall Street have been infact directed towards a different object. These tendencies are a

Activity (17)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Cristina Rusu liked this
Cristina Rusu liked this
driremes liked this
Puneet Jha liked this
Puneet Jha liked this
sergiorvil liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->