I don't believe that we should ever have a good money again before we take the thing out of the hands of government all we can do is by some SL around the about way introduce something they can't stop haek has basically been proven right or at least that's what it looks like a lot um if you look at what he predicted you know manipulating interest rates would do to the economy and what bailouts would have sort of a moral hazard effect and if you sort of study what's been happening for the past you know 30 years or so then it it really does seem like all of his predictions and warnings just came true the problems that he described manifested and that's that's what ultimately led to the uh the great financial crisis of the of 2008 for example today Aaron van wam delves into the ideological clash between Frederick Hayek and John mayard kees which fundamentally shaped economic discourse in the 20th century KES advocated for government intervention during economic crises while hyek staunchly championed a la Fair approach believing in the self-correcting mechanisms of the free market these debates originating in 1931 persisted for decades as policy makers grappled with the Dilemma of interventionism versus Market autonomy due to the popularity of ke's ideas hyek struggled to gain traction over policy makers and the public public considering he could not provide a solution to the problems in K's model that is until the existence of a remarkable technology that presented itself to the world in a perfectly Sly and roundabout way Aaron van wum is the esteemed author behind the Genesis Book a comprehensive exploration of the historical Journey that paved the way for the creation of Bitcoin we have a link in the description below where you can buy it let's hear Aaron tell us a bit about econom I Theory and the beginning of Bitcoin but before we do that I want to introduce our sponsors stamp seed the orange pill app and Swan our partners are businesses and people that we respect and our products that we at bit intelligence personally use you're watching 21 Voices so the book really sort of explores in away the history of economic science itself it starts mostly with a economics and and the emergence of that in in Austria of course but there's even sort of flashbacks for what was before that like how was it different than what existed at that time which was the historical School of Economics then it Compares sort of aians to the keans and later to the monists it tells the story from a haing perspective and then sort of you sort of see his critique and I think the big chopos that sort of emerges in the book and that emerged in you know the history of economic debate is the role of the state in the economy so canans really believe that the the state had a big role in the economy so KES believ that the government had to spend the economy out of a recession for example while Hayak had this very bottomup idea about the economy so the you know you let individuals and you let the free markets re free and that's how you get the best most effective efficient allocation of resources so more government or less government and I think Bitcoin sort of represents the Lea so fiat currency has over well the centuries evolved to be sort of this top down way of organizing money and then Bitcoin represents a new alternative now that that approaches it in this bottom up way so this this better reflects the philosophy of uh austrians and and and the the emergent bottom up nature of economies so monetary nationalism is a term coined by Hayak who at one point in his career explained why the national fiat currency system sort of distorted the flow of resources on on an economic uh International scale so there's been different ways that National currencies worked some of them were partly gold- based and of course Fiat currencies are just completely unbacked but in any of these cases haak said by having it sort of tied to a national economy the economy doesn't self-organize as well as it should because you have to deal with like exchange rates and if you want to buy something from another Cur country you first need to get the currency from that country so if there's a discrepancy in demand for products and services from one country over another then the entire economy of that country is sort of affected by that even the companies or the businesses that don't have anything to do with the that that discrepancy in itself so it it distorts the spontaneous order actually that's that's the term used uh for economies so the ways economy self-organized is disrupted distorted by having this National fiat currency systems or just National currencies in general so that's why he argued for a form of man that was International and could be used across bard regardless of you know without exchange rates or anything like that let's say the the the car industry in Britain for example is doing very well and there's a lot of demand for British cars in the United States so in order to buy these cars now Americans first need to get British pounds which affects the exchange rates between the dollar and the pound so now the pounds is getting stronger and the dollar is getting weaker respectively now because the pound is getting stronger that means that that basically every other products that's produced in Britain now gets more expensive for Americans to buy as well even though that's not where the demand changed the demand changed in like a specific industry but all other Industries are now affected as well so this is how this Distortion sort of happens yeah so if you have an international money Stander that just can be used across borders then the demand for British cars would be reflected in the price for British cars but the other British products wouldn't be affected by that at all if there's more demand for one product and that would drive up prices usually but other it doesn't drive up every price it just drives up the price for that product while with this National currencies it just indirectly drives up all prices even though that that shouldn't happen please bear with us for a quick message from our sponsors these videos take a lot of time to make and we've partnered with Brands We Trust like stamp seed and the orange pill app in order to get the funding we need to bring you these videos every week don't store your Bitcoin in Cold Storage without stamping your seed phas on an indestructible titanium plate stamp seed is fireproof rust proof impact proof and easy to hide it has no loose parts and will give you ultimate peace of mind that your Bitcoin is safe and sound for the long term click the link in the description below for 15% off your stamping kit when I finally got Bitcoin it hit me like a lightning bolt it was the currency of the future the only money that truly mattered but there was a problem I didn't know anyone else that thought like me that is until I discovered the orange pill app suddenly I was connected with a network of like-minded Bitcoin enthusiasts right in my own City the orange pill app is more than just a social network it's a community of passionate individuals determined to change the world one Satoshi at a time this series is brought to you by Swan and created by bit intelligence remember to like this video And subscribe to both our channels for more videos like this every week thanks for watching Hayek and KES had these big debates in the 30s most notably about these issues about the role of the government in the economy and countercyclical ideas that kanes was proposing and haek at the the business cycle which he he said caused a Great Depression so they they had these big debates both public and private and Kan in a way won that debate but when I say won that debate I really mean sort of he won the popular vote so to say so his message was more popular uh because he sort of offered a solution to a problem while Hayak sort of described the cause of the problem but people needed the solution people wanted the solution and perhaps in particular the people in power governments they they needed a sort of shortterm solution uion governments in Democratic countries like to be reelected so they need to sort of offer Solutions in the near term and kanes had the sort of near-term solution so I think that's why kan's ideas took hold while Hayak ideas were just uh I think he got the right idea but they were just too unpopular to catch on and this was actually also Hayek's criticism of kinism for a large part he did disagreed with K's approach of how to you know deal with uh depression but his even bigger concern was actually that the incentives didn't align for policy makers to strictly adher to K's ideas even K's theory was that if the if if the econom is in a depression the government needs to spend and then if it's going better then the government needs to cut spending but what what Hayak said is no the government will just always have this incentive to sort of spend and make people happy and you know the popular sort of pressure of doing that will also always sort of overwhelm what what what kan's even thought was maybe better so Hayek both criticized K's idea for its merits and for its practical um realism haek has basically been proven right or at least that's what it looks like a lot um if you look at what he predicted you know manipulating interest rates would do to the economy and what um you know bailouts would have sort of a moral hazards effect and if you sort of study what's been happening for the past you know 30 years or so then it it really does seem like all of his predictions and warnings just came true like if you studi this work and then study the economy it it really does seem like uh the problems that he described manifested and that's that's what ultimately led to the uh the great fincial crisis of the of 2008 for example one of the themes throughout the book is spontaneous order so this is a term uh popularized by Hayak in which he described how economies can self organized without government involvement it has been argued and I argue that uh F and open source software projects are also operating a lot like a spontaneous order like it's something that sort of emerged from a community of users that where no one is particularly in charge and and still it sort of works rather than at this STP down structure is bottom up phenomenon so that's how haek describe the economy itself uh that's how you could see free and open source uh software projects and ultimately I think that's how you can see Bitcoin that's sort of the content text of Bitcoin uh as opposed to fiat currency where fiat currency is this very top- down centralized way of organizing money Bitcoin represents this really bottom up uh alternative and therefore better reflects you know a spontaneous ordered economy while Keynesian interventionism dominated economic policy for decades Hayek's perspective struggled to offer a solution until the Advent of Bitcoin this remarkable technology born out of decentralized principles presents a viable alternative to traditional economic models by decentralizing control and empowering individuals Bitcoin augments Hayek's vision of a free market economy providing a mechanism for self-regulation and resilience against centralized manipulation as we witness the rise of Bitcoin we're witnessing a new chapter in economic theory developed one that Embraces decentralization individual sovereignty and the potential for True economic fre freedom for the entire world stay tuned and remember to subscribe for the latest Recaps insights and films about all things Bitcoin this is 21 Voices if you want to watch another episode try this one here