Keynes versus Hayek

by Henry C K Liu from Asia Times Online. (A re-post of an article of his from 1999) The two page article is a good summary of the two schools of capitalist economic theory and the application of each to keep the inherently unstable capitalist system running over the past 75 years. Liu, a highly educated economist, is a Keynesian, but his understanding of socialism is flawed by the historical stillborn birth of socialism in the Soviet Union. Hence "socialism" for many bourgeois educated people has come to mean an economy and society governed by a state bureaucracy instead of the soviet [local worker] councils which was the original intention. Unfortunately, it was the former which actually developed shortly after the revolution in the Soviet Union. Why this happened has been subject to endless debate and obfuscated and distorted by capitalist propaganda.