Occasional Tweets: The sectoral balances equation

 

#MMTservesTheRich#DeficitSpendingMoneyCreation is gov policy since time immemorial. #MMT is the new packaging. The #ProfitLaw Q≡(G−T)+(I−S) implies #PublicDeficitIsPrivateProfit. The primary purpose of the public budget has always been the self-alimentation of the #Oligarchy.

— E.K-H (@AXECorg) December 18, 2020

#MMTers are too stupid for the elementary algebra that underlies #MacroEconomics, more specifically, the #SectoralBalances equation

MMT=False → (I−S)+(G−T)+(X−M)=0,
True → (I−S)+(G−T)+(X−M)−(Q−Yd)=0.

Quick MMT 101 refutationhttps://t.co/M1rzHCv4DR

— E.K-H (@AXECorg) December 18, 2020

In the equation (I−S)+(G−T)+(X−M)=0, the household sector is present with the variable S, i.e. saving, which is defined as the balance of wage income Yw and consumption expenditures C.

Wikipedia and the promotion of economists’ idiotism (I)https://t.co/UatINJt5nd

— E.K-H (@AXECorg) December 18, 2020

#LearnEconomics

You obviously do NOT realize that this is not “my” equation but the official MMT equation (photo). The cited Wikipedia entry is original MMT stuff. And it is PROVABLY false. Seehttps://t.co/3x9c31peUB pic.twitter.com/PynbyNb8F3

— E.K-H (@AXECorg) December 18, 2020

My research tells me that

(i) the balances equation features prominently in the MMT textbook

Refuting MMT’s Macroeconomics Textbookhttps://t.co/nIAJmF1Om7

(ii) profit does NOT appear in the MMT equation

MMT and the magical profit disappearancehttps://t.co/kFmaB8XDkk

— E.K-H (@AXECorg) December 18, 2020

For more about balances see AXECquery.