Blog-Reference
It is a bit silly to ask a counterfeiter How are you going to pay for stuff? ― he will simply point to his brand-new xD-printer. As MMTers are wont to say, governments are not households, i.e. the sovereign money issuer is different from the money user. This, of course, is true but does not go very far. The economic fact of the matter is this.
1. The macroeconomic Profit Law entails Public Deficit = Private Profit.
2. Therefore, the MMT policy of permanent deficit-spending/money-creation is a permanent free lunch for the Oligarchy.
3. The lethal effect of MMT policy is NOT on inflation but on distribution.
4. Fabulous financial wealth is the mirror image of fabulous public debt ($22 trillion and counting).
5. Deficit-spending/money-creation causes a tiny price hike (NO inflation) and thereby current output is redistributed between wage-earners and deficit-spenders. The real wage is reduced depending on the volume of deficit-spending relative to total wage income.
6. In real terms, the wage-earners pay for the stuff the counterfeiters buy. Deficit-spending/money-creation merely substitutes stealth-taxation via the price-mechanism for open taxation via the IRS.
7. Deficit-spending/money-creation reduces the real wage income of the household sector and increases the overall profit of the business sector.
8. Deficit-spending induces interest payments on the public debt. This amounts to income redistribution from WeThePeople to the Oligarchy as long as the debt is rolled over.
9. The MMT policy of permanent deficit-spending/money-creation is ultimately NOT for the benefit of WeThePeople.
10. MMT is political agenda pushing for the Oligarchy in a scientific/social bluff package.#1
Egmont Kakarot-Handtke
#1 For the full-spectrum refutation of MMT see cross-references MMT
Related 'MMT Progressives: The knife in the back of WeThePeople' and 'MMT: If you’ve got a problem, I don’t care what it is, let me help' and 'Fraud comes always in the cloak of philanthropy, salvation, or threat of doom'.
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REPLY to Calgacus on Feb 27You say: “Money causes unemployment. Unemployment is unjust, cruel and insane. The JG eliminates this insanely cruel injustice and nothing else can.” and “You claim to be a Christian, but do you listen to MMT advocate Jesus fighting tooth and nail for a JG and insisting on its necessity?”
You are clearly out of economics (understood as science) and in the preacher business. The First Commandment of Science is: Do not moralize!#1, #2
Your assertion: “Money causes unemployment” is provably false. Your Money Theory is just as crappy as your Employment Theory.#3
To invoke Jesus in an economic argument is the unassailable proof that you are either stupid or corrupt or both.
#1 The moralizing economist is not a good guy but a fake scientist
#2 Economics for believers
#3 Full employment through the price mechanism