September 18, 2018

Smart! How to make people fund their brain-washing

Comment on Down with Tyranny on ‘Want To Sound Really Smart About Economic Issues? Read This’

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Down with Tyranny argues: “When Blue America endorses a candidate, there are several ways we can be helpful to their campaigns, the most obvious being to help them raise campaign funds by connecting them to small dollar campaign contributors. This cycle one of the most valuable other ways we’ve helped candidates is by connecting them to Stephanie Kelton, America’s most brilliant economist.”

Stephanie Kelton argues: “Government debt is just the money the government spent into the economy and didn’t tax back. That’s all the national debt is. It’s a historical record of all of the times that they made a net deposit, spent more than they taxed out, and the bonds are the difference between those. One of the greatest cons ever perpetrated on the American people is this notion that the national debt belongs to us, that we are responsible in our individual capacity for a share of it.”

Everything is wrong with Stephanie Kelton’s economics
  • Her whole argumentation is based on MMT which is an economic theory that is refuted on all counts.#1
  • MMT is scientifically worthless. It is political economics, in other words, agenda-pushing in the cloak of academic authority.
  • MMT and Stephanie Kelton claim to push the agenda of WeThePeople but in fact, push the agenda of the Oligarchy.
  • All MMT policy guidance boils down to deficit-spending/money-creation.
  • Because the macroeconomic Profit Law states Public Deficit = Private Profit, MMT's economic policy boils down to the permanent growth of public debt which is nothing else than the permanent self-alimentation of the oligarchy.
  • All the social goodies MMTers promise are paid in real terms by WeThePeople themselves via stealth taxation.
  • Public debt is deferred taxation of WeThePeople which is simply pushed beyond the time horizon.
  • From the axiomatically correct Profit Law follows (I−S)+(G−T)+(X−M)−(Q−Yd)=0 which boils down to Public Deficit = Private Profit.#2 MMTers hide this distributional fact by lumping the business and the household sector together to the private sector and saying Public Deficit = Private Sector Surplus suggesting that private sector means WeThePeople. This is a verbal shell-game.#3, #4

MMT is ― to use Stephanie Kelton’s words ― “one of the greatest cons ever perpetrated on the American people”.#5

Egmont Kakarot-Handtke

#1 For the full-spectrum refutation of MMT see cross-references MMT
#2 Keynes, Lerner, MMT, Trump and exploding profit
#3 MMT is gangsta economics
#4 The Kelton-Fraud
#5 MMT and grassroots movements

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