Comment on Bill Mitchell/Tom Hickey on ‘ECB denial is just embarrassing’
Blog-Reference and Blog-Reference
Tom Hickey recounts the highlights of his spiritual development: “There as been a running debate for some time here in the comments over whether the drivel about about MMT that appears in the corporate media from so-called experts in economics and finance is owing to ignorance or a desire to malign and marginalize MMT, or perhaps a combination thereof. I have taken the position that experts are expected to know better, so the presumption is bad faith and malicious intent. However, I have had to change my mind on this. Now it seems to me that what I have been reading is a matter of ignorance and that the supposedly top people in economics and finance, who should know the realities of what they dealing with, e.g., the relevant institutional arrangements and accounting, don’t. They are almost uniformly clueless. Worse, many don’t want to know, since their minds are already made up.”
This follows immediately Bill Mitchell’s lengthy psychological study about groupthink among mainstream economists.#1 And somebody recently asked Why does everyone hate MMT?#2 Not surprisingly, as shrewd psychologists, MMTers put forward a plausible explanation: MMT is rejected because of “ignorance or a desire to malign and marginalize MMT, ….” This exemplary psycho-social diarrhea is the main constituent of economic debates since time immemorial.#3
True, there is a lot of BS in the media about MMT but this does NOT justify answering it with counter-BS. What one has to realize is that the whole Mainstream vs MMT blather is way beside the point. As Schumpeter admonished his mentally retarded co-economists long ago: “Remember: occasionally, it may be an interesting question to ask why a man says what he says; but whatever the answer, it does not tell us anything about whether what he says is true or false.”
The point is NOT whether MMT is loved or hated but whether it is true or false. This whole psychological/motivational mind-reading exercise is nothing but a distraction from the scandal that both Mainstream and MMT are proto-scientific garbage.
The fact is that MMT has been refuted on all counts.#4, #5, #6, #7, #8 More specifically, it is a mathematical fact that the MMT sectoral balances equation is false.#9 Because the foundations are false the whole analytical superstructure and the economic policy guidance are false.
It is a curious fact that MMTers do not answer to the proof of material/formal inconsistency. Instead, they do what they accuse the Mainstream of denial, PsySoc filibuster, blocking, and censoring. Applying Tom Hickey’s mind-reading to MMT itself: “Most of the these people are heavily invested reputationally in a wrong paradigm and admitting this would be disastrous for them. So at least some self-protection is also likely involved.”
In combination with the proven material/formal inconsistency of the MMT approach, this leaves but one psycho-social conclusion: MMTers are stupid or corrupt or both.
Egmont Kakarot-Handtke
#1 Fake surveys and Groupthink in the economics profession
#2 Love and hate in economics: the PsySoc shell game
#3 The economist as second-guesser, mind reader, and folk psychologist
#4 The final implosion of MMT
#5 Refuting MMT’s Macroeconomics Textbook
#6 MMT: fundamentally false
#7 The canonical macroeconomic model
#8 For the full-spectrum refutation of MMT see cross-references MMT
#9 The MMT equation (I−S)+(G−T)+(X−M)=0 is false, the AXEC equation (I−S)+(G−T)+(X−M)−(Q−Yd)=0 is true. The equations are testable with the precision of two decimal places.
Related 'Economics: the honeypot for know-nothingers' and 'Ditch scientific incompetence!' and 'Economics is NOT a social science' and 'Social science is NOT a science but a sitcom' and 'Economics is NOT about Human Nature but the economic system' and 'Overreach: Economists have their fingers in every pie except real economics' and 'How to get rid of the silly Queen' and 'New economic thinking = old political fake' and 'PsySoc — the scourge of economics' and 'Disoriented and lost in folk psychology' and 'How economists became the scientific laughing stock' and 'Opinion, conversation, interpretation, blather: the economist’s major immunizing stratagems' and 'The economics Cargo Cult Prize' and 'Failed economics: The losers’ long list of lame excuses' and 'Meet the MMT smart arses' and 'Economists/MMTers: agenda pushers, distractors, blockers, muters, censors'.