Comment on Prabhat Patnaik on ‘What could be wrong with a fiscal deficit? ’
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Prabhat Patnaik resumes “And here, the real point to note is the following. The claims that capitalists hold against the government because of the fiscal deficit have been put into their hands by the fiscal deficit itself.”
Yes, that’s exactly what the macroeconomic Profit Law implies, i.e. Public Deficit = Private Profit.#1-#3 Consequently, the Financial Wealth of the Oligarchy ≈ Public Debt of WeThePeople. The sign ≈ indicates that some other factors play a role that can be left out of the picture here.
This, however, is only the first move in the distribution game. The Oligarchy gets interests on the public debt which is taxed from WeThePeople as long the debt is rolled over. The taxman makes sure since time immemorial that interests are paid on time.
The policy of deficit-spending/money-creation is the mechanism for the perpetual and progressive self-alimentation of the Oligarchy. Financial wealth grows in lockstep with public debt. Mr. Trump’s current policy will blow up macroeconomic profit to hitherto unimaginable proportions no matter whether unemployment falls or rises. This, after all, is why the Oligarchy put him into office in the first place.
MMTers sell the biggest Ponzi scheme of all time as a good deed for the benefit of WeThePeople. Academic economists are already for a long time part of the scam.#4
That’s wrong with a fiscal deficit: it is a political and scientific fraud. Economists will go to the scientific equivalent of hell for this. Except for Prabhat Patnaik, of course.#5
Egmont Kakarot-Handtke
#1 Profit
#2 Cross-references Profit
#3 The Profit Law, Wikimedia AXEC143d
#4 Keynes, Lerner, MMT, Trump, Biden, and exploding profit
#5 Your economics is refuted on all counts: here is the real thing
Related 'Why MMTers permanently explode 'myths of public deficits'' and 'Q: How are you going to pay for it? MMT: By stealth taxation!' and 'Criminals and the monetary order' and 'The decisive reason to worry about government debt' and 'No MMT illusions! YOU are going to pay for it' and 'How to pay for the war and to be bamboozled by economists'.
