Comment on George Eaton on ‘MMT economist Stephanie Kelton: “Donald Trump changed the terms of economic debate”’*
George Eaton reports: “I asked Kelton whether she believes Donald Trump has changed the terms of economic debate. “Absolutely. When he passed the $1.9trn tax cuts in 2018, which everybody knew were going to increase the deficit, I saw Senator Sanders, and he said to me, ‘Is this you? Did you do this?’ And I replied, ‘It’s a good thing. It’s a good thing in that it’s going to show you can make use of the budget when you have power to carry out your agenda.’”
Yes, of course, it was a good thing, because deficit-spending/money-creation has always been a good thing for the Oligarchy.#1 The 3-sector Profit Law Q≡(G−T)+(I−S)+Yd implies Public Deficit = Private Profit. Therefore, more deficit-spending/money-creation results in due time in a macroeconomic profit explosion.
The relationship between deficit and profit as given by the Profit Law, however, is either not well understood or deliberately obfuscated in the public debate. MMTers, of course, do not openly admit that they are working for the Oligarchy but pretend to fight as upright Progressives against austerity and for the welfare of WeThePeople. The result has been an utterly confused and confusing propaganda war.#2-#6
President Trump finally did what Stephanie Kelton and the other MMT agenda pushers have argued for in academia and on social media long before 2018: “What did we [the US] do? We spent trillions of dollars [to save the economy]. So do I feel vindicated? Hell yeah, I feel vindicated. It’s been apparent to anyone paying attention who has been getting this stuff right.”#7 Except for the fact, that MMT as economic theory is refuted on all counts.#8
Without a doubt, President Trump's tax cut was a triumph for all the Oligarchy's women and men. In the meantime, MMT has been declared official doctrine.#9
However, the propaganda war goes on. As Stephanie Kelton announced: “We’re still going to have differences, but at least our debate won’t be bogged down by this threat of running out of money or bankrupting our children and grandchildren, all that stuff.”
Yes, the counterfeiter household never runs out of money and never stops stealing from the rest of society and will with an emphatic smile trick the children of WeThePeople into paying in all eternity interest to the children of the Oligarchy.
COV19 is a godsend for the Oligarchy. The Profit Law says, the bigger the public deficit the higher private profit.#10 Mr. Trump handed out a massive free lunch to the Oligarchy, Mr. Biden will even surpass him. Academic economists will cover the fraud and deceive WeThePeople with proto-scientific garbage. After all, serving the Oligarchy has always been the actual job of presidents and professors.
Egmont Kakarot-Handtke
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REPLY to Andrew Anderson on Feb 20
You say: “No, the monetary sovereign MAY and SHOULD create new fiat.”
Of course, the Central Bank should provide additional transaction money if the economy and the wage bill are growing. This is exactly what CB's are for. Things go badly wrong, though, if the additional money is not injected on the supply side but on the demand side. In this case, the CB acts like a counterfeiter.#1, #2 Creating money and buying stuff means stealing from the rest of society and pushing up the profit of the business sector, i.e. creating the insane distribution of financial wealth you can observe by switching on your brain and looking out of the window.