Social Democracy: Why Social Democracy Doesn’t Work—Keynesian Economics Part 2

Social Democracy: Why Social Democracy Doesn’t Work—Keynesian Economics Part 2

This is another problem with Keynesians is
they’re so wasteful. Much like that of Marxists, they seem to think that demand is something
secondary, that is to say that Keynesians have this skewed view aggregate supply being
produced, then creates demand. This is deeply flawed, it’s demand that drives production,
not the other way around. Demand is something constant, it’s always there and so demand
is what drives production and that’s what ensures what prices are. When you leave it
down to the free market for prices to determine where resources are going to be allocated
and also ensures the efficiency that what is being produced is in relation to the demand
of the economy; the free market economy. Keynesians think that demand is just something you can
plan for, you just produce and, therefore, demand just comes along, but there’s no guarantee
that what you produce is going to be in demand and they end up creating surplus waste, so
they’re inefficient and they end up being faced with shortage problems because much
like Marxists, Keynesians are control freaks over the economy. “Growth should ensure that
enough wealth is generated to match the needs of the entire society, this establishes the
material foundations for a good quality of life, but it’s important that this wealth
benefits not just a few people, but the whole society. This is the principle of social balance,
this means, for example, that good work should be paid appropriately. A sustainable economy
is necessary in order to ensure that societies in the future also have access to the resources
they need. Sustainability means only consuming as much as can be replenished.” Like I said
on the economic calculation problem, the economic calculation problem really is the primary
reason for why socialism is so inefficient. Never mind their theory about, you know, replenishing
resources and only use so much, yeah, that’s all well in theory but what these, you know,
Keynesians end up doing is they end up wasting resources, they end up putting it into the
wrong parts of the market that could have otherwise been more efficiently put into parts
of the market where demand is more urgently needed, more urgently required, therefore,
better improving material wealth. “The three economic principles of growth, social balance
and sustainability each affect one another. There are political movements that tend to
concentrate on just one of the principles. What’s special about the economic policy of
social democracy is that it aims to find a balance between all three principles. Marco
is really excited by this idea, an economic policy that does not sit around waiting but
actively gets involved. He wants to be part of this in the future. You can find further
information and other resources about the topic of economic policy on the academy for
social democracy website and on the department for economic and social policy website. Everything
from at and with the Friedrich Ebert Stiftung.” It’s all well speaking about all these good
intentions and what, you know, the Keynesians wish to do. From the inefficiency, right;
over resources and the resource misallocation that they’re faced with; with all of their
government intervention that ends up resulting in monopoly and cartel creation and they end
up resulting in a private sector restricted in innovation, as well, of course, in competition
and they end up creating the monopolies as I say, ends up putting smaller business people
at a competitive disadvantage through their strong government regulation and their higher
tax rates that end up creating the problem that he spoke about earlier. You can see the
problem with their whole idea and the government subsidies over private industry is exactly
what results in incompetency and that’s a big part of resulted in the legally protected
fraud of the banking crisis and, you know, all the other problems it just makes the taxpayer
collectively poorer. All in the name of the redistribution of wealth. They haven’t made
society better off. All in the name of trying spend their way out of a mess and driven people’s
costs of living through the roof all in the name of trying to make society better collectively
better off; taxing them half to death where they can barely get by. Social market economies
of Germany, of Denmark, of Norway, of Sweden; they’re not social democracies, they’re social
market economies. Therefore, when you talk about Denmark or Sweden, they have low levels
of government regulation, that’s not something that social democrats believe in. So folk,
I hope you’ve enjoyed the video, I hope it’s been informative for yourself, if you’ve got
anything you would like to add, comment in the comments section below and, of course,
thank you for watching the video; be sure to like the video, share the video and whatnot
and, of course, I shall talk to you’s later, cheers!

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5 thoughts on “Social Democracy: Why Social Democracy Doesn’t Work—Keynesian Economics Part 2

  1. Hi, Scotty. I know you’re probably swamped with requests but can you respond to this video next: It should be interesting to watch.

  2. Scotty M! I don’t know whether u remember but I found u on youtube about 2-3 years ago, when I was still in undergrad in Korea. Glad to find your channel again. Love your well-made vids.

  3. Hey Scotty what do you think about this

  4. Where can i find where you debunk the american maoist asshole with the guns on the wall? I need a good laugh, he was so stupid it sometimes hurt. But i laugh just thingking about it.

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