AXEC: New Foundations of Economics: May 2024

May 18, 2024

Occasional Xs: How it works (CC)

#LearnRealEconomics

“While government debt can be a valuable tool for addressing myriad economic challenges, it is not and has never been a free lunch.”

The U.S. polity is an #Oligarchy with #Congress / #Treasury / #Fed / #BigBusiness as integral parts. The axiomatically… pic.twitter.com/iiPbFA11Tw
— E.K-H (@AXECorg) May 18, 2024

Occasional Xs: Clueless economists / Profit (XXXV)

#Economics #FailedFakeScience #Austrianism

“The only source from which an entrepreneur’s profits stem is his ability to anticipate better than other people the future demand of the consumers.” (von Mises)

The #MarketEconomy runs on #Profit. The 3-sector #ProfitLaw… pic.twitter.com/LTZ8NyZ7fZ
— E.K-H (@AXECorg) May 18, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXXIV)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth #Austrianism

von Mises: “In the imaginary construction of a stationary economy the total sum of all entrepreneurs’ profit equals the total sum of all entrepreneurs’ losses.”

This is provably false. The… pic.twitter.com/Y4p8xxsFZt
— E.K-H (@AXECorg) May 18, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXXIII)

#Economics #FailedFakeScience

“… it is totally irresponsible to have a loud and vociferous opinion on economic subjects while remaining in this state of ignorance.”

For 200+ years, economics has claimed to be science but is NOT. The major approaches (#Walrasianism,…
— E.K-H (@AXECorg) May 18, 2024

May 16, 2024

Occasional Xs: What economists really do (CCXLVIII)

#Economics

Since the founding fathers, #Economists have claimed to be doing science but they did NOT. What they really did was to disguise political #AgendaPushing as #Science or #EnlightenedPhilosophy or #ProgressiveEthics or #EducationOfTheMasses.

Actually, economics has…
— E.K-H (@AXECorg) May 16, 2024

Occasional Xs: What economists really do (CCXLVII)

#Economics #FailedFakeScience

“Your podcast is far better than our educational system.”

For 200+ years, economics has claimed to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually… pic.twitter.com/hW6cBqkUtb
— E.K-H (@AXECorg) May 16, 2024

Occasional Xs: How it works (CXCIX)

#Economics #FailedFakeScience

“… did anyone mention the only beneficiaries of the myth of Fed independence …”

The U.S. polity is an #Oligarchy with #Congress / #Treasury / #Fed / #BigBusiness as integral parts. The axiomatically correct #ProfitLaw ⇓ implies… pic.twitter.com/gJPSrcRVnH
— E.K-H (@AXECorg) May 16, 2024

Occasional Xs: What economists really do (CCXLVI)

#Economics #FailedFakeScience #Economists #StupidOrCorruptorBoth

“Our knowledge of Ravi Shankar won us a prize.”

Congratulations on this professional shot in the foot. There is no better way to tell the social media crowd that Economics in Ten Minutes is in the #DisInfoTainment… pic.twitter.com/RV1QPYzoEb
— E.K-H (@AXECorg) May 16, 2024

May 15, 2024

Occasional Xs: What economists really do (CCXLV)

#Economics #FailedFakeScience

Economics claims to be #Science but is NOT. The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory &… pic.twitter.com/PM3ppguRzN
— E.K-H (@AXECorg) May 15, 2024

Occasional Xs: What economists really do (CCXLIV)

#Economics #FailedFakeScience

“Wir sollten auf den Rat der Ökonomen vom IW sowie IMK hören, die #Schuldenbremse außer Kraft setzen und mindestens 600 Mrd. in die Infrastruktur investieren, …”

No. If your job is to promote the interests of #WeThePeople, don't ever follow the…
— E.K-H (@AXECorg) May 15, 2024

Occasional Xs: How it works (CXCVIII)

#Economics #FailedFakeScience #FiscalPolicy

“Bei den jungen Leuten ist der Groschen gefallen “ / “The penny has dropped with the young people”

Not really.

The #MarketEconomy runs on #Profit. The macroeconomic #ProfitLaw implies #PublicDeficitIsPrivateProfit. So,… pic.twitter.com/KdijuFnfNC
— E.K-H (@AXECorg) May 15, 2024

Occasional Xs: The futile attempt to recycle MMT (CVIII)

#Economics #FailedFakeScience #MMT

According to the axiomatically correct macroeconomic #LawOfSupplyAndDemand, the #RealWage W/P in the elementary production-consumption #Economy ⇓ moves (i) with the #Productivity R and declines (ii) with #DeficitSpendingMoneyCreation i.e.… pic.twitter.com/dK6GXnIovk
— E.K-H (@AXECorg) May 15, 2024

May 14, 2024

Occasional Xs: What economists really do (CCXLIII)

#Economics #FailedFakeScience #SchuldenBremse

The correct term for the German polity is NOT #Democracy but #Oligarchy with key institutions like #Parliament / #Treasury / #CentralBank / #BigBusiness as integral parts. This institutional setup thrives on…
— E.K-H (@AXECorg) May 14, 2024

Occasional Xs: The futile attempt to recycle MMT (CVII)

#MMT #BadScienceBadPolicyBadPeople

MMT's foundational #BalancesEquation is provably false, so their whole #Macroeconomics is scientifically worthless.

The page where Stephanie Kelton gets macroeconomics wrong https://t.co/CNFDkXM1Ki

The axiomatically correct 3-sector… pic.twitter.com/T3g01p4Kep
— E.K-H (@AXECorg) May 14, 2024

Occasional Xs: What economists really do (CCXLII)

#Economics #FailedFakeScience

Since 2018, the Trump and Biden administrations have lifted the #DebtCeiling several times. Did this help to significantly improve public infrastructure, alleviate poverty, or improve the future of American children?

No.

But because of the… pic.twitter.com/M0DDpW52rv
— E.K-H (@AXECorg) May 14, 2024

Occasional Xs: What economists really do (CCXLI)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

“As it developed since Adam Smith’s time, economics is, methodologically, not very pliable to what policymakers naturally want, which is interventionism and Colbertism, …” This is just another example of… pic.twitter.com/gSfMFyr3k5
— E.K-H (@AXECorg) May 14, 2024

Occasional Xs: What economists really do (CCXL)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

“Basiswissen triff auf wirschaftspolitische Strategie.”

For 200+ years, economics has claimed to be science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their… pic.twitter.com/6EPM7rGysS
— E.K-H (@AXECorg) May 14, 2024

May 13, 2024

Occasional Xs: How it works (CXCVII)

#LearnRealEconomics #Deficit #Profit #Debt #Interest

The #MarketEconomy runs on #Profit. The macroeconomic #ProfitLaw implies #PublicDeficitIsPrivateProfit. So, #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy.

The #PrivateFinancialWealth of the #WeTheOligarchy…
— E.K-H (@AXECorg) May 13, 2024

Occasional Xs: The futile attempt to recycle Adam Smith (LXVII)

#Economics #FailedFakeScience

Since the founding fathers, #Economists have claimed to be doing science but they did NOT. What they really did was to disguise political #AgendaPushing as #Science or #EnlightenedPhilosophy or #Moralizing.

Adam Smith NEVER understood what #Profit… pic.twitter.com/YQcpbvB4G4
— E.K-H (@AXECorg) May 13, 2024

May 12, 2024

Occasional Xs: The futile attempt to recycle Marx (XXIX)

#Economics #FailedFakeScience #NoFalseHeroMemorials

“His [Marx's] work helps us not only understand capitalism, but fight for a world free of exploitation and domination.”

The history of economic thought is the history of scientific failure. #KarlMarx NEVER understood what…
— E.K-H (@AXECorg) May 12, 2024

Occasional Xs: Clueless economists / Money (VIII)

#Economics #FailedFakeScience

“The Federal Reserve prints money (digitally).”

And that blows your mind?

That #Money is created #OutOfNothing is NOT the point. The crucial point is whether money is injected on the left side of the business sector's national account in the form…
— E.K-H (@AXECorg) May 12, 2024

Occasional Xs: Clueless economists / Science (LXXXIX)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

“Coming to the conclusion that there's no point trying to argue with 'mainstream' (neoliberal?) economists …”

In #Science, an argument starts with an empirical/logical refutation and ends with a #ParadigmShift.…
— E.K-H (@AXECorg) May 12, 2024

May 11, 2024

Occasional Xs: What economists really do (CCXXXIX)

#LearnRealEconomics #Deficit #Profit #Debt

“We do not have a national debt.”

The #Profit Law ⇓ implies #PublicDeficitIsPrivateProfit. So, the policy of #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy i.e. #PrivateFinancialWealth grows with #PublicDebt.… pic.twitter.com/78nIlpPArB
— E.K-H (@AXECorg) May 11, 2024

Occasional Xs: Clueless economists / Money (VII)

#LearnRealEconomics #Money

“… the material does not give a clue about the nature of money.”

Correct, money is NOT a thing. It is #Information, stored on a material data medium, e.g. gold coin, clay tablet, paper, magnetic data carrier, etc.

How money emerges out of nothing ―…
— E.K-H (@AXECorg) May 11, 2024

Occasional Xs: The futile attempt to recycle MMT (CVI)

#LearnRealEconomics #Deficit #Profit #Money

“MMT proponents often say that a public sector deficit is a private sector surplus.”

Yes, and this tells you that #MMTers are either stupid or corrupt or both.

The #Profit Law ⇓ implies #PublicDeficitIsPrivateProfit. So, the policy…
— E.K-H (@AXECorg) May 11, 2024

May 9, 2024

Occasional Xs: Clueless economists / Science (LXXXVIII)

#Economics #FailedFakeScience

To call economics a “dismal and harmful science” is misleading because economics has never satisfied the definition of #Science.

For 200+ years, economics has claimed to be science but is NOT. The major approaches (#Walrasianism, #Keynesianism,… pic.twitter.com/wGTQ1lx61i
— E.K-H (@AXECorg) May 9, 2024

Occasional Xs: Scrap the EconNobel (XIV)

#Economics #FailedFakeScience

Because economics has never satisfied the definition of #Science, #Prizes have no scientific significance. They are a #Marketing / #PR / #Propaganda tool to shape #PublicOpinion and an #Incentive / #Reward with which the #Oligarchy controls… pic.twitter.com/zK7EBWo2Ur
— E.K-H (@AXECorg) May 9, 2024

Occasional Xs: The futile attempt to recycle MMT (CV)

#MMT #BadScienceBadPolicyBadPeople

“No MMT'er ever worked in finance and money management for a living.”

What about Warren Mosler or Mike Norman? The rest does not work on Wall Street but intentionally or unintentionally for Wall Street.

Dear idiots, MMTers are Wall Street’s…
— E.K-H (@AXECorg) May 9, 2024

Occasional Xs: How it works (CXCVI)

#Economics #FreeMarkets

“The market is a democracy in which every penny gives a right to vote.”

The U.S. polity is an Oligarchy with #Congress / #Treasury / #Fed / #BigBusiness as integral parts. The axiomatically correct #ProfitLaw ⇓ implies #PublicDeficitIsPrivateProfit.… pic.twitter.com/BN0ZIdpeAw
— E.K-H (@AXECorg) May 9, 2024

Occasional Xs: What economists really do (CCXXXVIII)

#Economics #FailedFakeScience #Austrianism

For 200+ years, economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory and axiomatically false and materially/formally… pic.twitter.com/Mhk9CBeoXa
— E.K-H (@AXECorg) May 9, 2024

Occasional Xs: What economists really do (CCXXXVII)

#LearnRealEconomics

The U.S. economy runs on #Profit. The macroeconomic #ProfitLaw implies that the greater part is produced by #DeficitSpendingMoneyCreation. The economy is saved from #Breakdown by #Fed / #Treasury i.e. the State's deficit-spending/money-creation. #Bidenomics… pic.twitter.com/AWHKJWRLcg
— E.K-H (@AXECorg) May 9, 2024

May 8, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXXII)

#Economics #FailedFakeScience #Austrianism #DisInfoTainment #Hayek NEVER understood what #Profit is and how the economic #System works. He was NOT a #Scientist but an #AgendaPusher / #Clown in the political #CircusMaximus. His Liberty flag waving is not, never has been, and…
— E.K-H (@AXECorg) May 8, 2024

Occasional Xs: The futile attempt to recycle MMT (CIV)

#MMT #BadScienceBadPolicyBadPeople

“My 4-month-old son looked me straight in the eyes today & said “dad, isn’t it logically incongruent that MMTers claim they want to reduce inequality, …”

Yes, #MMTers have big problems with logic. They claim to be #Scientists but have no idea…
— E.K-H (@AXECorg) May 8, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXXI)

#Economics #FailedFakeScience #Austrianism

The history of economic thought is the history of scientific failure. #Hayek, for example, NEVER understood what #Profit is and how the economic #System works. When the foundational concepts of the subject matter are inconsistent, the…
— E.K-H (@AXECorg) May 8, 2024

Occasional Xs: Forget supply-demand-equilibrium (VI)

#Economics #FailedFakeScience #ParadigmShift

The basic building block of economics is NOT the Supply-Demand-Equilibrium Cross because this silly construct is derived from #MicroFoundations but the 4-Quadrant Chart ⇓ which is derived from axiomatically correct #MacroFoundations.… pic.twitter.com/adtrpD8mTr
— E.K-H (@AXECorg) May 8, 2024

Occasional Xs: The futile attempt to recycle MMT (CIII)

#MMT #BadScienceBadPolicyBadPeople

“Finding the money is never a problem; they just create it. … when we view it from a different angle, a government deficit becomes a financial surplus." (Stephanie Kelton)

Yes, but it becomes a surplus of #WeTheOligarchy and NOT of… pic.twitter.com/eLoLinWde4
— E.K-H (@AXECorg) May 8, 2024

May 7, 2024

Occasional Xs: How it works (CXCV)

#LearnRealEconomics #Deficit #Profit

“Markets Can Shrug Off the ‘Oy, the Deficit’ Crowd.”

So true. The #Profit Law ⇓ implies #PublicDeficitIsPrivateProfit. So, the policy of #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy i.e. #PrivateFinancialWealth grows… pic.twitter.com/6YCuxIlYR9
— E.K-H (@AXECorg) May 7, 2024

Occasional Xs: The futile attempt to recycle MMT (CII)

#MMT #BadScienceBadPolicyBadPeople

“The national debt = safe assets. It's just our savings.“

It's not “our” savings i.e. it's the savings of #WeTheOligarchy and NOT of #WeThePeople.

MMT's foundational #BalancesEquation is provably false, so their whole #Macroeconomics is… pic.twitter.com/Xv672lGIIr
— E.K-H (@AXECorg) May 7, 2024

Occasional Xs: Economics ― just disinfotainment and self-hype (XLV)

#Economics #DisInfoTainment #Prizes

The #PulitzerPrize is just #SelfHype of the #Press, the #Oscar is just #SelfHype of #Hollywood, the #EconNobel is #SelfHype of #AcademicEconomics, etcetera. Prizes are a #Marketing / #PR / #Propaganda tool to shape #PublicOpinion and an…
— E.K-H (@AXECorg) May 7, 2024

Occasional Xs: How it works (CXCIV)

#LearnRealEconomics #Deficit #Profit #Debt #Interest

The #MarketEconomy runs on #Profit. The macroeconomic #ProfitLaw implies #PublicDeficitIsPrivateProfit. So, #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy. Macroeconomic profit is mainly produced by the…
— E.K-H (@AXECorg) May 7, 2024

May 6, 2024

Occasional Xs: Paradigm Shift (XXX)

#Economics #FailedFakeScience #Reset

The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got #Profit wrong. When the foundational concepts… pic.twitter.com/j8g13g9MKt
— E.K-H (@AXECorg) May 6, 2024

Occasional Xs: How it works (CXCIII)

#LearnRealEconomics

The U.S. economy runs on #Profit. The macroeconomic #ProfitLaw implies that the greater part is produced by #DeficitSpendingMoneyCreation. The economy is saved from #Breakdown by #Fed/#Treasury i.e. the State's deficit-spending/money-creation. #Bidenomics is… pic.twitter.com/du2i20b0Ot
— E.K-H (@AXECorg) May 6, 2024

Occasional Xs: The futile attempt to recycle MMT (CI)

#Economics #FailedFakeScience #MMT

“Maybe the National debt clock does not represent the terrible burden we are leaving our grandchildren.”

The macroeconomic #Profit Law implies #PublicDeficitIsPrivateProfit. So, the MMT policy of #DeficitSpendingMoneyCreation is a #FreeLunch… pic.twitter.com/pt5nSTTx2A
— E.K-H (@AXECorg) May 6, 2024

Occasional Xs: The futile attempt to recycle MMT (C)

#Economics #FailedFakeScience #MMT

The #FreeMarketEconomy runs on #Profit. The 3-sector #ProfitLaw Qm≡(G−T)+(I−Sm)+Yd implies that the greater part is produced by #DeficitSpendingMoneyCreation. So, the #PrivateFinancialWealth of #WeTheOligarchy grows with the #PublicDebt of… pic.twitter.com/OB7xnZ2ZGc
— E.K-H (@AXECorg) May 6, 2024

Occasional Xs: How it works (CXCII)

#LearnRealEconomics

The 3-sector #Profit Law ⇓ implies #PublicDeficitIsPrivateProfit. So, #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy i.e. #PrivateFinancialWealth grows with #PublicDebt. #WeTheOligarchy owns the financial assets, #WeThePeople owes the… pic.twitter.com/YSBJo9rBgo
— E.K-H (@AXECorg) May 6, 2024

Occasional Xs: The futile attempt to recycle Milton Friedman (XIII)

#Economics #FailedFakeScience

For 200+ years, economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent &… pic.twitter.com/lYi6CQW3mz
— E.K-H (@AXECorg) May 6, 2024

Occasional Xs: The futile attempt to recycle Marx (XXVIII)

#Economics #FakeScience #DisInfoTainment

After presenting #Marx as the “affectionate grandfather” and “romantic husband” one wonders when this #Hollywoodization ends and other lesser-known (and unfunny) aspects of his personality are revealed.

For example: Wolfgang Waldner, Der…
— E.K-H (@AXECorg) May 6, 2024

Occasional Xs: Clueless economists / Science (LXXXVII)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

Since the founding fathers, #Economists have claimed to be doing science but they did NOT. What they really did was to disguise political #AgendaPushing as #Science or #EnlightenedPhilosophy or #Moralizing.

Adam…
— E.K-H (@AXECorg) May 6, 2024

May 5, 2024

Occasional Xs: The futile attempt to recycle Marx (XXVI)

#Economics #FailedFakeScience

'The change makers have only changed the world in various ways — the point, however, is to improve it.'

The history of economic thought is the history of scientific failure. #Marx was NO exception. He got #Profit (the foundational concept of the…
— E.K-H (@AXECorg) May 5, 2024

Also at Rosa Luxemburg Foundation.

Also at Marcello Musto.

Occasional Xs: How it works (CXCI)

#LearnRealEconomics #Deficit #Profit #Debt #Interest

The #MarketEconomy runs on #Profit. The #ProfitLaw ⇓ implies #PublicDeficitIsPrivateProfit. So, #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy. Macroeconomic profit is mainly produced by the growth of… pic.twitter.com/4uyN9vRRpp
— E.K-H (@AXECorg) May 5, 2024

Occasional Xs: The futile attempt to recycle MMT (XCIX)

#Economics #MMT

“Everyone has an opinion on MMT, but very few understand monetary operations enough to formulate intelligent criticism.“

Yes, Mr. Bernstein's comment on money-printing and deficit-financing is BS but it cannot be used as proof that MMT/Stephanie Kelton is…
— E.K-H (@AXECorg) May 5, 2024

Occasional Xs: What economists really do (CCXXXVI)

#Economics #FailedFakeScience

“While government debt can be a valuable tool for addressing myriad economic challenges, it is not and has never been a free lunch.”

The #FreeMarketEconomy runs on #Profit. The 3-sector #ProfitLaw Qm≡(G−T)+(I−Sm)+Yd implies that the greater part…
— E.K-H (@AXECorg) May 5, 2024

May 4, 2024

Occasional Xs: The futile attempt to recycle MMT (XCVIII)

#Economics #MacroFoundations #SectoralBalances

The so-called #FreeMarketEconomy runs on #Profit. The axiomatically correct macroeconomic #ProfitLaw / #BalancesEquation (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0 implies Public Deficit G−T>0 = Private Profit Qm.

From this follows that…
— E.K-H (@AXECorg) May 4, 2024

Occasional Xs: The futile attempt to recycle Adam Smith (LXVI)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

Since the founding fathers, #Economists have claimed to be doing science but they did NOT. What they really did was to disguise political #AgendaPushing as #Science or #EnlightenedPhilosophy.

Adam Smith NEVER… pic.twitter.com/4ljFBgeDJk
— E.K-H (@AXECorg) May 4, 2024

Occasional Xs: What economists really do (CCXXXV)

#Economics #War

The USA/EUR/GER is at war with RUS. This implies the transition from the #Welfare to the #Warfare #State and this, in turn, means #Impoverishment / #DeficitSpendingMoneyCreation / exploding #PublicDebt / #Inflation and exploding macroeconomic #Profit. In real…
— E.K-H (@AXECorg) May 4, 2024

May 3, 2024

Occasional Xs: What economists really do (CCXXXIV)

#Economics #FailedFakeScience

For 200+ years, economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent &…
— E.K-H (@AXECorg) May 3, 2024

Occasional Xs: Clueless economists / Science (LXXXVI)

#Economics #FailedFakeScience #Reset

For 200+ years, economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally…
— E.K-H (@AXECorg) May 3, 2024

Occasional Xs: What economists really do (CCXXXIII)

#Economics #FailedFakeScience

The #MarketEconomy runs on #Profit. The 3-sector #ProfitLaw Qm≡(G−T)+(I−Sm)+Yd implies that the greater part is produced by #DeficitSpendingMoneyCreation. So, the #PrivateFinancialWealth of the #Oligarchy grows with the #PublicDebt of… pic.twitter.com/73lS1NQ5bP
— E.K-H (@AXECorg) May 3, 2024

May 2, 2024

Occasional Xs: Clueless economists / Inflation (XXIV)

#LearnRealEconomics

From the macroeconomic #LawOfSupplyAndDemand ⇓ the intelligent layperson can immediately conclude that #Inflation rarely happens by accident but has to be ENGINEERED. This holds always and everywhere for #HyperInflation. So, moralizing about inflation or… pic.twitter.com/WUUitWYJtL
— E.K-H (@AXECorg) May 2, 2024

Occasional Xs: The futile attempt to recycle Adam Smith (LXV)

#Economics #FailedFakeScience

The history of economic thought is the history of scientific failure. Robert Heilbroner called #Economists worldly #Philosophers. This is an euphemism for #AgendaPushers / #UsefulIdiots / #Clowns in the political #CircusMaximus. ⇒

Economics,… pic.twitter.com/8p4DQyD1sp
— E.K-H (@AXECorg) May 2, 2024

May 1, 2024

Occasional Xs: The futile attempt to recycle MMT (XCVII)

#MMT #BadScienceBadPolicyBadPeople

MMT's foundational #BalancesEquation is provably false, so their whole #Macroeconomics is scientifically worthless.

The page where Stephanie Kelton gets macroeconomics wrong https://t.co/CNFDkXM1Ki

The axiomatically correct 3-sector… pic.twitter.com/4OdccObhNt
— E.K-H (@AXECorg) May 1, 2024

Occasional Xs: How it works (CXC)

#LearnRealEconomics #Deficit #Profit #Debt #Interest

The #MarketEconomy runs on profit. The #ProfitLaw ⇓ implies #PublicDeficitIsPrivateProfit. So, #DeficitSpendingMoneyCreation is a #FreeLunch for the Oligarchy. Macroeconomic #Profit is mainly produced by the growth of… pic.twitter.com/KNwPIl0JPp
— E.K-H (@AXECorg) May 1, 2024

Occasional Xs: Economists’ eternal problem with methodology (VII)

#Economics #FailedFakeScience #Methodology #Keynes got macroeconomic #Profit wrong because he was too stupid for elementary #Algebra. So, he messed up the #ParadigmShift from #MicroFoundations to #MacroFoundations. Because of this initial blunder, the whole of (#Micro & #Macro)… pic.twitter.com/bvodmjzbJR
— E.K-H (@AXECorg) May 1, 2024

Occasional Xs: What economists really do (CCXXXII)

#Economics

The fact that equity returns have been rising faster in the USA than in EUR since 2010 proves that the #Fed's quantitative and qualitative manipulation of the #FinancialMarkes has gone into overdrive.

As far as real #Innovation is concerned, the current wars show…
— E.K-H (@AXECorg) May 1, 2024

Occasional Xs: Clueless economists / Expectations (I)

#LearnRealEcon

“One of the most frequent headlines seems to be 'the surprising strength of the US economy'."#Surprise means that one's #Expectations were wrong. This in turn means that one's grasp of reality is poor. So, strictly speaking, who tells on social media that he/she… pic.twitter.com/4fMIjunXSV
— E.K-H (@AXECorg) May 1, 2024

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Knowledge only — no opinion

Science does not explain everything, but non-science explains nothing.

Neither orthodox nor heterodox economics satisfies the scientific criteria of material and formal consistency.

Economists cannot explain how the economy works. The Profit Theory is false since Adam Smith. There is much opinion and little knowledge.

Opinion is the realm of political economics, knowledge is the realm of theoretical economics.

Political economics is scientifically worthless.

Theoretical economics is built upon clearly stated premises, i.e., upon a set of axioms.

Orthodoxy got the axiomatic foundations wrong and Heterodoxy has none at all.

Economics is a failed science. Economists are incompetent scientists.

Profit

Neither Classicals, nor Walrasians, nor Marshallians, nor Marxians, nor Keynesians, nor Institutionialists, nor Monetary Economists, nor MMTers, nor Austrians, nor Sraffaians, nor Evolutionists, nor Game theorists, nor EconoPhysicists, nor RBCers, nor New Keynesians, nor New Classicals ever came to grips with profit. Hence, they all fail to capture the essence of the market economy.

Because of this, economists have nothing to offer in the way of a scientifically founded economic policy guidance.

The hybrid science

As a first approximation, one can agree on the general characteristic that the economy is a complex system.

However, with the term system one usually associates a structure with components that are non-human. In order to stress the obvious fact that humans are an essential component of the economic system the market economy should be characterized more precisely as a complex hybrid human/system entity.

The scientific method is straightforwardly applicable to the sys-component but not to the hum-component. While it is clear that the economy always has to be treated as an indivisible whole, for good methodological reasons the analysis has to start with the objective system-component.

In gestalt-psychological terms the economic system is the foreground, individual behavior the background. Common sense wrongly insists that the hum-component must always be in the foreground. This fallacy compares to geo-centrism. The economic system has its own logic which is different from the behavioral logic of humans. The systemic logic is what Adam Smith called the Invisible Hand.

There are systemic laws but no behavioral laws. Systemic laws have the same methodological status as physical laws.

Neither Orthodoxy nor Heterodoxy can tell what the systemic laws of the actual monetary economy are.

Whether the outcome of the human/system-interaction is good or bad is a politcal question that lies outside of theoretical economics. Theoretical economics explains how the actual economy works - no less, no more.

Narrative vs.Theory

Psychological, sociological or behavioral assumptionism cannot yield anything other than a gossip model of the world. Second-guessing the agents is not economic analysis.

Science deals exclusively with propositions that can in principle be decided by objective means. The rest is opinion, faith, phantasy, motive speculation, allegation, hallucination, myth, paranoia, ink-blot association, psychology, philosophy, in one word: storytelling.

Storytelling is the original mode of communication in the social realm — except science.

Political economics is storytelling and, by default, the natural habitat of confused confusers. Walrasianism, Keynesianism, Marxianism, Austrianism are social narratives and not scientifically valid representations of reality.

"The truth is, most persons, not excepting professional economists, are satisfied with very hazy notions." (Fisher)

In marked contrast, theoretical economics lives up to the standards of material and formal consistency. A scientific theory is the best mental representation of reality that is humanly possible.

Theory starts with a set of objective and consistent axioms.

Paradigm Shift

"The problem is not just to say that something might be wrong, but to replace it by something — and that is not so easy." (Feynman)

"As will become evident, there is more agreement on the defects of orthodox theory than there is on what theory is to replace it: but all agreed that the point of the criticism is to clear the ground for construction." (Nell)

"The moral of the story is simply this: it takes a new theory, and not just the destructive exposure of assumptions or the collection of new facts, to beat an old theory." (Blaug)

"Is it not a fact, which stares at us from the histories of all sciences, that it is much more difficult for the human mind to forge the most elementary conceptual schemes than it is to elaborate the most complicated superstructure when those elements are well in hand?" (Schumpeter)

"The task of producing knowledge against the grain requires imagination." (Mirowski)

"A new idea is extremely difficult to think of. It takes a fantastic imagination." (Feynman)

"The scientific imagination dreams of explanations and laws." (Peirce)

"It is brilliance of imagination which makes the glory of science." (Evans)

"... we know little more now about ‘how the economy works,’ ... than we knew in 1790, after Adam Smith completed the last revision of The Wealth of Nations." (Clower)

Selftest and to watch for

You apply one of these items

• supply-demand-equilibrium,

• general equilibrium,

• marginal utility,

• well-behaved production functions,

• total income = value of output,

• total income = wages + profits,

• I=S,

• wage rate down - employment up,

• behavioral axioms?

Then you are out of science because of unnoticed material or formal inconsistency.

Every economist who uses the concept of equilibrium is scientifically incompetent because she/he failed to notice that equilibrium is an economic nonentity.

Practically this means: as soon as the word equilibrium appears in an economic text it can be thrown into the waste basket. The same holds for all other nonentities.

The vast majority of economists deals mainly with nonentities. This is why Walrasianism, Keynesianism, Marxianism, Austrianism is scientifically worthless.

Since Adam Smith, economic policy guidance has no sound scientific foundations.

To be replaced (1)

The core premises of Orthodoxy are uncertain and false and this fully explains the failure of the research program.

“As with any Lakatosian research program, the neo-Walrasian program is characterized by its hard core, heuristics, and protective belts. Without asserting that the following characterization is definitive, I have argued that the program is organized around the following propositions: HC1 economic agents have preferences over outcomes; HC2 agents individually optimize subject to constraints; HC3 agent choice is manifest in interrelated markets; HC4 agents have full relevant knowledge; HC5 observable outcomes are coordinated, and must be discussed with reference to equilibrium states.” (Weintraub)

The inescapable Paradigm Shift consists of the move from this obsolete hard core to the superior set of structural axioms.

To be replaced (2)

The fundamental equations of macroeconomics have been formulated by Keynes in two lines.

"Income = value of output = consumption + investment. Saving = income - consumption. Therefore saving = investment."

This elementary syllogism is demonstrably false. The demonstration consists in the proof that Keynes could not solve the Profit Puzzle. Neither did Post-Neo-New-Keynesians.

In the most general terms, the economics Paradigm Shift consists in switching from the behavior-centric bottom-up approach to the structure-centric top-down approach. This is comparable to the Copernican turn from geo-centrism to helio-centrism.

Consensus

Economics is a science without scientists. Because they are ignorant of the elementary difference between profit and income, the present generation of economists has not made and cannot make a significant contribution to the discussion about how the actual economy works.

Every orthodox or heterodox economist can convince himself/herself that their profit theory is defective.

Every non-economist can — by applying elementary logic — convince himself that conventional profit theories are false. See 'How the intelligent non-economist can refute every economist hands down'.

Because the profit theory is false the whole of conventional economic theory has to be rejected.

"What is now taught as standard economic theory will eventually disappear, no trace of it will remain in the universities or boardrooms because it simply doesn’t work: were it engineering, the bridge would collapse." (McCauley)

No scientist will ever accept Walrasianism, Keynesianism, Marxianism, or Austrianism. These approaches are logically and/or empirically refuted. This is the actual methodological state-of-art. Walrasians, Keynesians, Marxians, or Austrians are still at the proto-scientific stage. These approaches cannot be improved, only abandoned.

Economists are a public nuisance because they have an opinion on everything but knowledge of nothing.

About me

“Bottom line is that your profit law is just a definition you made up nobody else agrees with, nobody. You are all alone with your precious tautology.” Barkley Rosser

“In any event, your entire theory is based on you doing macro accounting in wacky fashion that nobody agrees with.” Brian Romanchuk

"Your stuff is at least original: it's quite cool after a couple of decades at this to see a fresh Economics. But real promises are not advanced: they were around for millennia until the Greeks obscured them with Metaphysics." Chris Cook

"No mate, they're you-blockers. You have all the personality traits of a crank, and the rest of them have tired of you. You could be 100% right, and you'd still die as your only follower." Steve Keen

"What you are doing fills is all with joy, your constructive critique is most welcome!"

Achim Truger,

German Council of Economic Experts,

in a failed attempt to be ironic

"200+ years of thought and yet you are the only one who gets it—or even understands your argument. Thank god we have you, pseudonymous Twitter user. Otherwise no one would know."

William Luther

Assistant Professor of Economics

in a failed attempt to be funny

"Egmonts profit law is the perfect equation that demonstrates this in action. Put the equation into a spreadsheet and then add government spending and watch how it flows into profits. Enter in some debt (-Sm) and watch too how that flows into profits. It can't go anywhere else."

Dean

About the rest of economics

Walrasianism, Keynesianism, Marxianism, Austrianism, MMT, Pluralism are mutually contradictory, axiomatically false, materially/ formally inconsistent. Economics is a failed science.

“There are three classes of people: those who see. Those who see when they are shown. Those who do not see.” Leonardo da Vinci

In economics, the overwhelming majority belongs to Class III. This explains why economics is after 200+ years still at the proto-scientific level.

The obvious task for every economist is to advance from cargo cult science and political agenda-pushing to science. This is absolutely beyond the means of Class III people.

For 200+ years now, economists are not scientists but agenda pushers, useful idiots, clowns in the political Circus Maximus.

Nopopop

This blog does not add to any popular/un- popular opinion.

This blog does not hand out advice about how to avoid taxes, to get rich on the stock market, to be successful in business, to increase the wealth of nations, to run an economy, to maximize welfare, to prevent national/global bankruptcy, to improve the institutional setup of society, to get out of national/global depression, nor about how to save humankind or any subgroup thereof.

This blog is about the true theory of the actual monetary economy.

"In order to tell the politicians and practitioners something about causes and best means, the economist needs the true theory or else he has not much more to offer than educated common sense or his personal opinion." (Stigum)

Focus

Science is of primary interest and importance. Scientists are of secondary interest.

With regard to science, most people lose focus easily because of a natural preference for anecdotes and gossip over facts or subjectivity over objectivity.

Hence, Schumpeter once considered it necessary to remind his habitually disoriented fellow economists: “Remember: occasionally, it may be an interesting question to ask why a man says what he says; but whatever the answer, it does not tell us anything about whether what he says is true or false.”

Science is about true/false and nothing else.

Disclaimer

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Texts: Parts of arbitrary length of any of the author's texts is and will be used again by the author in papers, books, websites, blogs, and other media without explicit reference. The right to make corrections or minor textual improvements on reutilization is reserved. Therefore, it is always a good idea to double-check for the latest version.

Caution: Do not expect a corroboration of your political view. Neither a refutation. Political economics has been scientifically worthless since Adam Smith. Politics has to be separated from economics because it is categorically different from science. The best science can do and has always done is to prove beyond reasonable doubt that you have been objectively wrong or ignorant until now. Science goes beyond the naive common sense of today and becomes the sophisticated common sense of tomorrow.

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Outlook

To recall, while political economics is storytelling, theoretical economics adheres to scientific standards.

The first task of theoretical economics is to get the axiomatic foundations right. This is what J. S. Mill called the opus magnum. Neither Orthodoxy nor Heterodoxy came up with a reasonable solution to this day. This explains the secular stagnation of economics.

There is no serious alternative to structural axiomatic economics. This is not a matter of opinion but of proof. The sole criteria are material and formal consistency.

All of economics has to be reconstructed from the ground up.

Major economic policy implication

The price mechanism does not work as standard economics hypothesizes. The axiom-based Employment Law states that overall employment increases if the average wage rate increases relative to average price and productivity. This gives one the lever to improve the employment situation all over the world and to fend off deflation without rising debt and without artificial capacity growth. To increase the average price relative to the average wage rate and productivity increases unemployment.

Right policy depends on true theory.

“In order to tell the politicians and practitioners something about causes and best means, the economist needs the true theory or else he has not much more to offer than educated common sense or his personal opinion.” (Stigum)

Lacking the true theory, economists promote for more than 200 years opinion instead of knowledge.