Occasional Tweets: Since Adam Smith, economists get the relationship between profit/income and performance wrong

 

Bc #ProfitTheory is false since Adam Smith #DistributionTheory, too, is false.

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. So, #PrivateFinancialWealth grows in lockstep with #PublicDebt.#Distribution has NOTHING to do with #Performance. pic.twitter.com/4ZYNQjvmpc

— E.K-H (@AXECorg) August 19, 2022

For details of the big picture see cross-references Profit/Distribution.