Bill Mitchell tells his masterclass: “Viewed in a differ way, we have the accounting expression for the sectoral balances; (G – T) = (S – I) – (X – M + FNI)”
This equation is provably false because the balance of the business sector which is known as macroeconomic profit Q is missing. An economic approach that lacks the foundational magnitude profit is proto-scientific garbage.
Because the foundational macroeconomic relation is false the whole of MMT's analytical superstructure is false. Therefore, MMT's policy guidance has NO sound scientific foundations. Because of their absolute lack of scientific competence, MMTers are a public danger.
The correct sectoral balances equation reads (I−S)+(G−T)+(X−M)−(Q−Yd)=0.#1-#6
* billy blog
#1 MMTers: too stupid for simple math
#3 The sectoral balances obfuscation: stupidity or corruption?
#4 Wikipedia and the promotion of economists’ idiotism (II)
#5 Rectification of MMT macro accounting
#6 MMT is refuted on all counts, see cross-references MMT
Related 'Refuting MMT’s new Macroeconomics Textbook'