This documentary by the BBC is worthwhile in my opinion:
Even though the outline of Hayek's view of the economic order is portrayed reasonably well, it is interesting to note that the left leaning BBC had to add some commentary in the last 10 minutes or so of the show that Hayek's view did not give people "hope" in the face of a downturn. Keynes view of spending to boost the economy in a downturn they noted did provide "hope" (and massive government intervention).
What is never resolved in this series, and this is one of Hayek's main objections to socialistic interventions is the moral hazard involved in government boosting spending.
Hayek believed that as government grew in size and influence, that first economic freedom would be eroded (through excess regulations and rules) and then democracy itself would be eroded. The end result is an economic crisis so severe that the now dependent citizens of the socialist state will beg for a "strongman" or authoritarian ruler to "fix the mess".
It is my view that the next economic crisis will be more severe than the 2008/09 meltdown. The timing of this crisis seems difficult to determine with precision. My best estimate is in the next 6 to 18 months we will see a significant shock to the global economy originating in either Europe or Japan. This shock will involve the bond market as yields shoot up as a result from the panic by large investors. It is at this point we can expect to see precious metals rise as most assets are crushed by the increase in fear and yields.
So we likely still have some time to prepare for a tough situation and can encourage those who are close to us to do the same. It is my hope that over this next short period of time, those of us in the know can be more effective in convincing those to "believe" that the government will magically save them. Perhaps after the last crisis the ears of some will be unstopped and we will not face the resistance, denial and mockery of the economically and arithmetically ignorant.
Even though the outline of Hayek's view of the economic order is portrayed reasonably well, it is interesting to note that the left leaning BBC had to add some commentary in the last 10 minutes or so of the show that Hayek's view did not give people "hope" in the face of a downturn. Keynes view of spending to boost the economy in a downturn they noted did provide "hope" (and massive government intervention).
What is never resolved in this series, and this is one of Hayek's main objections to socialistic interventions is the moral hazard involved in government boosting spending.
Hayek believed that as government grew in size and influence, that first economic freedom would be eroded (through excess regulations and rules) and then democracy itself would be eroded. The end result is an economic crisis so severe that the now dependent citizens of the socialist state will beg for a "strongman" or authoritarian ruler to "fix the mess".
It is my view that the next economic crisis will be more severe than the 2008/09 meltdown. The timing of this crisis seems difficult to determine with precision. My best estimate is in the next 6 to 18 months we will see a significant shock to the global economy originating in either Europe or Japan. This shock will involve the bond market as yields shoot up as a result from the panic by large investors. It is at this point we can expect to see precious metals rise as most assets are crushed by the increase in fear and yields.
So we likely still have some time to prepare for a tough situation and can encourage those who are close to us to do the same. It is my hope that over this next short period of time, those of us in the know can be more effective in convincing those to "believe" that the government will magically save them. Perhaps after the last crisis the ears of some will be unstopped and we will not face the resistance, denial and mockery of the economically and arithmetically ignorant.
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