Occasional Tweets: Economists don't get it to this day

 

#LearnEcon

Politically it may be a big change but “wages rise at the expense of profits” is BS macro. The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd tells one that macroeconomic #Profit depends on #DeficitSpendingMoneyCreation and NOT on wages. That's the Fallacy of Composition.

— E.K-H (@AXECorg) May 29, 2021

For more about the macroeconomic Profit Law see AXECquery.