For those who haven’t seen this yet, it’s classic Grant: eloquent and merciless. The Fed doesn’t need PhD’s, he says, but should be run by someone with a bachelor’s degree in the law of unintended consequences.
I like how at the end Keynes is pulled up to his feet and declared the victor (no matter how obvious a failure, the corrupt system keeps applying his theories). Then the Washington mandarins, Wall Street bigwigs and press all gather around him while the nerds come to congratulate Hayek. The press often implies that the Wall Street crowd loves Hayek and laissez-faire (“unrestrained markets” and all that), when in reality the moneyed political players support intervention since they are successful rent seekers and bailout recipients.
The key point that well-intentioned supporters of government (like most everyone in Europe) often miss is summed up in this phrase from Hayek:
“With political incentives, discretion’s a joke.
Those dials they’re twisting, just mirrors and smoke.”
For those who haven’t seen it, this is the first video:
And the real Hayek on Keynes: