RMIT is the George Mason of the South

It was certainly never intended that way but the School of Economics, Finance and Marketing at RMIT has become one of the great free market universities of the world. This has been posted at Instapundit just today following the post you see below on The Blockchain Economy:

INTERNET 4.0: Chris Berg (Australia’s free speech champion), Sinclair Davidson (of Catallaxy Files fame), and Jason Potts have put together The Blockchain Economy: A beginner’s guide to institutional cryptoeconomics. If they’re right, regulators and taxmen have a lot to fear.

And allow me to add myself into this equation. I presented my paper on Tuesday on “Classical Economic Theory Explained” which discussed the many many many things wrong with Keynesian macro – that is, all of modern macro – that the classics got right. And while the number of people who get this is quite small at the moment it is not quite zero and the numbers are growing. Therefore, let me refer you to this paper by Per Bylund More Spending Does Not Drive More Employment in which the following passage may be found:

Economists prior to the Keynesian avalanche, which contemporary Say’s Law scholar Steve Kates argues was all about dismissing the organic view of the market economy, had the same understanding of the economy as Mises. What drives the economy is not demand or spending, but entrepreneurship and production.

Indeed, JS Mill famously notes that “Demand for commodities is not demand for labour” in his fourth fundamental proposition on capital. While this statement is subject to much debate and most modern economists cannot make sense of it, it is in effect very straight-forward if one recognizes the role of entrepreneurs.

And if you want to want to read about Mill’s Fourth Proposition, you can go here. This was its first defence in more than a century but as said by Leslie Stephen in 1876, “it is the best test of a sound economist”.

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56 Responses to RMIT is the George Mason of the South

  1. Greg byrne

    That is very good Steve but I don’t see either side of Federal Parliament taking that much notice of Catallaxy, the IPA or any other think tank. I don’t want to be too brutal but these are facts.

  2. Rafe

    Lets hear it for the Australian school of economics.
    Eat your heart out Carl Menger!

    Written from the French Baguette in Beijing, on the move with limited time for posting.

  3. Sinclair Davidson

    If you took time out from stewing in your envy and hatred you’d realise that there is the seen and the unseen. What you can’t see must be a very large subset of reality. Don’t want to be too brutal and all …

  4. JC

    but I don’t see either side of Federal Parliament taking that much notice of Catallaxy, the IPA or any other think tank.

    Union aligned fake think tanks.
    Green aligned fake think tanks.

    “Parliament” takes a lot of notice, dipshit. That’s why the Left holds such appalling views on policy.

  5. Robber Baron

    I’ll be impressed when RMIT stop taking government money.

  6. Steve Kates

    And what will impress me is when you have something useful to say about what I wrote. Go on, defend the stimulus, show how Keynesian demand management increases employment and puts people back to work. Just because it has never happened anywhere at any time should not be an obstacle. Lots of things are true in theory but false in practice.

  7. Sinclair Davidson

    Unfortunately most people are too cheap to pay for their children’s education. Until that changes the government pays for higher education.

  8. struth

    Unfortunately most people are too cheap to pay for their children’s education. Until that changes the government pays for higher education.

    If you took time out from stewing in your envy and hatred you’d realise that there is the seen and the unseen.

    Who is Sinc talking to?

  9. Dr. Troy Lynch

    Well done, Steve, Sinc, etc.

    What a lot of people do not understand is that persistence lowers resistance.

    What the chaps at RMIT are doing is offering a legitimate alternative to the left and the mainstream in economics. It also flys in the face of that other class, the indolent, intellectually vacuous, lazy average Australian. That said, I love that class, because it kicks back when it perceives it is being deceived and abused (there is something in that about the nobility of the common people).

    The problem is that the Machiavellian, malevolent malcontents use surreptitious and devious means, and employ underhanded tactics at all times, and the average punter cannot see it. Reading Gerhart Niemeyer, one understands where the insidious roots stem from in the likes of Meslier, Morelly and Mably, the forerunners of Babeuf, Roussseau, Lenin and Marx, and in the nadir of recent history in the French and Russian revolutions (and I am sure Keynes is in there somewhere). These people and their modern ilk have unequivocally nothing of benefit to offer exception nihilism, revolution and pain. They are driven by envy.

    At one point of time, in the U.S., it required 8.3 points of contact with a potential customer before he or she bought. The conclusion from direct-response marketing is that you have to be continually hitting your target audience with your offering. Keep up the good work!

  10. May I suggest a quick copy and paste of at least a name when replying to other comments so that we all know which comment is being responded to. (Sinc Steve and Byrne exchange above)
    It’s was enough to figure out the above exchange because there are so few comments as yet, but becomes hard to follow when comment numbers increase.
    Thanx in advance.

  11. True Aussie

    When are you taxpayer funded parasites going to live up to your freemarket ideology and actually make or break it in the free market?

  12. Sinclair Davidson

    What are you talking about? We operate in a free market for education, and are very profitable having thousands upon thousands of fee paying students.

  13. struth

    What are you talking about? We operate in a free market for education, and are very profitable having thousands upon thousands of fee paying students.

    The ABC operates in a free market for media and sells through it’s ABC shops too.

  14. Sinclair Davidson

    and sells through it’s ABC shops too.

    Hmmmmm. We sell our primary product – ABC shops don’t sell the primary product. Universities predate the modern state and survived without government funding for centuries.

  15. Luke W

    Isn’t EFM at RMIT the place where several of its finance and economics staff have been put on “administrative leave” recently for (allegedly) breaching the Australian Consumer Law? Is this what George Mason was on about Steve? Perhaps you, Sinc, Jason and Chris need to focus a bit more on matters closer to home.

    [Luke – I’m struggling to understand the relevance of your comment. None of us are involved in any alleged wrong-doing, nor are we being investigated for any wrong-doing. Are you accusing us of wrong-doing? Sinc]

  16. Empire GTHO Phase III

    Reading Gerhart Niemeyer, one understands where the insidious roots stem from in the likes of Meslier, Morelly and Mably, the forerunners of Babeuf, Roussseau, Lenin and Marx, and in the nadir of recent history in the French and Russian revolutions (and I am sure Keynes is in there somewhere).

    Keynes on the Bloomsbury Set:

    “We repudiated entirely customary morals, conventions and traditional wisdom. We were, that is to say, in the strict sense of the term, immoralists. The consequences of being found out had, of course, to be considered for what they were worth. But we recognised no moral obligation on us, no inner sanction, to conform or to obey. Before heaven we claimed to be our own judge in our own case.”

    The only thing he ever stimulated was his own member.

  17. Greg byrne

    Sinclair, I don’t understand your vitriolic response. I just expressed an honest opinion. I cannot understand how you could possibly construe it as driven by envy or hatred. Why, in heaven’s name, should I be driven by envy or hatred?

    JC, I don’t know why my comment should elicit an abusive response from you. I merely expressed the view that think tanks don’t really have any political influence. What does influence politicians are left-wing campaigns, including the ones our fake media run. The so-called think tanks you refer to are merely fronts designed to run interference for left-wing agitators while also providing their campaigns with ‘intellectual’ ammunition.

  18. struth

    Hmmmmm. We sell our primary product – ABC shops don’t sell the primary product. Universities predate the modern state and survived without government funding for centuries.

    So why do you take it now?

  19. struth

    Universities are the SBS of education.

  20. Sinclair Davidson

    So why do you take it now?

    I take nothing. The government, who employ men with lots of guns, forbid us from charging our Australian undergraduate customers a fee for our services; they then tell us how much money they will give us for those services. This is hardly a voluntary or commercial arrangement. So while our income statement has been nationalised – without compensation – you’re blaming the university sector for government theft?

  21. Sinclair Davidson

    Sinclair, I don’t understand your vitriolic response.

    I have no time for people who pretend to be stupid. You came out swinging.

  22. Greg byrne

    Sinclair
    That’s a very silly response. I merely expressed the opinion that I didn’t believe think tanks influenced politicians and you respond as if I had called for mass executions.

    For the life of me, I cannot see what was hateful or envious about what I wrote. It’s not as if I abused anyone.

  23. Sinclair Davidson

    Greg – what does this post have to do with think tanks? It is expressing a view about what is happening at a university. In any event, as I pointed out, you are wrong.

  24. struth

    I take nothing. The government, who employ men with lots of guns, forbid us from charging our Australian undergraduate customers a fee for our services; they then tell us how much money they will give us for those services. This is hardly a voluntary or commercial arrangement. So while our income statement has been nationalised – without compensation – you’re blaming the university sector for government theft?

    Is this the long winded version of the public servants “I’m just doing my job” routine?

    What are you talking about? We operate in a free market for education, and are very profitable having thousands upon thousands of fee paying students.

    Would you like to reconcile these two statements?
    Choose one and go with it.

    I take nothing

    But seeing you’re a volunteer……………………………………………………………………………………….

  25. struth

    If they’re right, regulators and taxmen have a lot to fear.

    LOL.

    I’m behind Greg.

    They won’t fear or hear anything you have to say, or take your advice for a second.

    He’s just pointing out the bleeding obvious.

    Greg was making the case that all are firmly left wing and they won’t be listening to anything from “perceived right wing think tanks or economists”

    Fair enough call, I reckon.

  26. Greg byrne

    Sinclair
    At this point, it’s really not a question of think tanks. The fact remains that you said that my opinion, whether it is right or not, was motivated by “envy and hatred”. The least you can do is try to justify your accusation.

  27. Sinclair Davidson

    Actually it is. You came out swinging and got belted. Now you are picking at straws hoping to save face.

  28. Sinclair Davidson

    Is this the long winded version of the public servants “I’m just doing my job” routine?

    I wish I was a public servant. I hear they have great super and can retire at 55.

  29. Greg may or may not have come out swinging but what is undeniable is that he hit a raw nerve.

  30. Greg byrne

    Sinclair
    Nonsense. I made a simple statement which neither abused nor insulted anyone. You responded by accusing me of being motivated by “hatred and envy”. Now you are refusing to justify your accusation.

  31. Snoopy

    Is Greg Byrne a somebody? A search doesn’t exactly light up Google.

  32. Greg byrne

    Snoopy
    I know that I am a somebody because my birth certificate says so.

  33. Sinclair Davidson

    I made a simple statement which neither abused nor insulted anyone.

    To the contrary your statement was very abusive and insulting. To be perfectly blunt the only reason you weren’t immediately banned due to abuse of posters is that we’ve met IRL. Frankly this should be a lesson to me – don’t let sentiment interfere when dealing with abusive threadsters.

  34. Sinclair Davidson

    … what is undeniable is that he hit a raw nerve.

    Yes – we provide a zero-price service and shouldn’t have to put up with abuse like that. Happy for people argue the toss and engage in debate, but abuse of posters has always been frowned upon.

  35. Greg byrne

    Sinclair
    Incredible, I merely said that I don’t think the “Federal Parliament taking that much notice of Catallaxy, the IPA or any other think tank”. You respond by accusing me of “stewing” in ” envy and hatred”. I am then accused of pretending to be “stupid”. Not content with that, you then absurdly accuse me of being both ” abusive and insulting”, for which I deserved to be banned.

    I think Catallaxy readers can be relied on to draw the appropriate conclusion.

  36. JC

    I think Catallaxy readers can be relied on to draw the appropriate conclusion.

    I did. I think you’re a dickhead.

  37. Sinclair Davidson

    Excellent Greg. You have summarized the situation perfectly.

    Next time tru be nice. Something like “well done guys. Such a pity you don’t have more influence”.

  38. struth

    This is a weird thread.

    Out of respect for it being your blog, I’ll give it a rest Sinclair, and not get you to explain why you are not taxpayer funded.
    You seem a bit edgy!
    From the little I know of you and the support for Malcom that you’ve shown, the stance you’ve taken on things, it all might be starting to rise to the surface for you.
    I believe you must be under incredible pressure to turn left constantly in the circle of Trough snouts you are amongst.

    Enough said.

  39. Sinclair Davidson

    Struth – I don’t need your patronisation. Fuck off and die. You are a guest here. Behave appropriately.

  40. struth

    Struth – I don’t need your patronisation. Fuck off and die. You are a guest here. Behave appropriately.

    Should that have made me laugh?
    It did.

    I took it as a joke.
    I’ll go off and act appropriately, and fuck off and die.

  41. Mark from Melbourne

    Struth – I don’t need your patronisation. Fuck off and die. You are a guest here. Behave appropriately.

    Way to patronise, Doomy.

  42. Empire GTHO Phase III

    My folks taught me the three rules of visitation to private property:

    1. Display deference to your host – it’s their abode.
    2. Leave things as you found them – if you make a mess clean it up, but if you entered a pigsty then leave it that way.
    3. If you reckon the hospitality stinks – don’t complain, blacklist the fucker and don’t come again.

  43. Robber Baron

    Awesome thread.

    I learned that Govermnent regulation of the university sector has made it almost impossible for the market to set its own price for a degree. Shameful.

  44. Fisky

    That is very good Steve but I don’t see either side of Federal Parliament taking that much notice of Catallaxy, the IPA or any other think tank. I don’t want to be too brutal but these are facts.

    While Prof. Davidson and I have our differences, one thing we agree on is that university tutors should not be promoting their novels to a captive audience. Very inappropriate!

  45. Sinclair Davidson

    struth – I’m so glad that we see eye to eye on this.

  46. OneWorldGovernment

    Well I’m proud to say I attended RMIT back in the 1970’s. Nightschool to boot.

    Best Economics Tutor I had was a rabid marxist who was helping form the nascent Fitzroy Co-op. Always good for a standup knockdown argument.

    Some may not realise but RMIT started life as the Working Men’s College of Melbourne. https://en.wikipedia.org/wiki/RMIT_University

    Some also may not realise but RMIT has introduced the World’s first research centre on social science of blockchain. https://www.rmit.edu.au/news/all-news/2017/sep/world_s-first-research-centre-on-social-science-of-blockchain

    And that is a big deal!

    You may not understand blockchains but it is out there and the more research into it the better.

    And Keynes. What a hegemony his thoughts, dare I say marxist thoughts, have had on the world.

    We are fortunate to have people like Jason Potts, Steve Kates and Sinclair Davison that give their time to Catallaxyfiles and Australia.

    I’m actually proud to know them.

  47. OneWorldGovernment

    Sinclair Davidson
    #2510771, posted on September 29, 2017 at 9:57 pm

    struth – I’m so glad that we see eye to eye on this.

    LOL

  48. sdfc

    And Keynes. What a hegemony his thoughts, dare I say marxist thoughts, have had on the world.

    This is clueless, he wasn’t a Marxist and there is no hegemony of his thoughts. New Keynesianism is maintstream, Keynes isn’t.

  49. OneWorldGovernment

    sdfc
    #2510821, posted on September 29, 2017 at 11:34 pm

    And Keynes. What a hegemony his thoughts, dare I say marxist thoughts, have had on the world.

    This is clueless, he wasn’t a Marxist and there is no hegemony of his thoughts. New Keynesianism is maintstream, Keynes isn’t.

    Okay, maybe I have misinterpreted Keynes’ essential ‘theory’.

    Maybe I don’t understand ‘New Keynesianism’

    Into which category would you put Rudd’s $900 cash payment to Australians to overcome the GFC, Keynesianism or New Keynesianism?

    And, when Keynes was advocating that the State should Tax and Spend is that Keynesianism or New Keynesianism?

  50. ripped

    Geez, it was getting hot in here!
    Why not save the angst for the real enemy – the one that has its every-growing hand in your pocket.

  51. JC

    New Keynesianism is maintstream,

    True and very very sad.

  52. Empire GTHO Phase III

    This is clueless, he wasn’t a Marxist and there is no hegemony of his thoughts. New Keynesianism is maintstream, Keynes isn’t.

    Boilerplate lefistry. Keynes legitimised the attack on private savings and promoted the mixed economy, concepts Marx proposed to attack capitalism.

    Keynes explicitly denied he was a red in public and it is also true there is no evidence he was a paid up Fabian, but his private correspondence with family and fellow Bloomsbury degenerates leaves no doubt.

    My Christmas thoughts are that a further prolongation of the war, with the turn things have taken, probably means the disappearance of the social order we have known hitherto. With some regrets I think I am on the whole not sorry. The abolition of the rich will be rather a comfort and serve them right anyhow. What frightens me more is the prospect of general impoverishment. In another year’s time we shall have forfeited the claim we had staked out in the New World and in exchange this country will be mortgaged to America. Well, the only course open to me is to be bouyantly bolshevik; and as I lie in bed in the morning I reflect with a good deal of satisfaction that, because our rulers are as incompetent as they are mad and wicked, one particular era of a particular kind of a civilization is very nearly over.

    Harrod, Life of Keynes, p. 224. Download options here.

    Keynes isn’t mainstream? Pull the other one. Which first world government doesn’t borrow to stimulate demand these days?

  53. Rafe

    Whatever is academic mainstream at present old fashioned Keynesian demand management dominates the daily commentare on policy. We need more demand!
    Never mind about productivity debt and regulation.

  54. Rafe

    Lunching in Beijing after a stroll in the Emperor’s garden nesr the Temple of Heaven and the Forbidden City.

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