“People ask me what is my aim when I write on inequality (pre-order my book btw). Some expect me to answer that its because I want to show some people (like Zucman, Piketty and Saez) are wrong. They are wrong to think that. My objective is to speak to those who are interested in listening — whether they agree with me or not already. In fact, any true social scientist should think that way: the next margin of convincing people that your results are correct.” (Vincent Geloso) To think that he is a 'true social scientist' is the economist's methodological ur-mistake. Vincent Geloso never understood profit and, by consequence, how the economic system works. Because his Profit Theory is wrong, his Distribution Theory is wrong. The free-market economy runs on profit. Macroeconomic profit is given by the axiomatically correct Profit Law Qm:=(I−Sm)+(G−T)+(X−M)+Yd. The Profit Law implies PublicDeficit=PrivateProfit Qm:=(G−T)>0, i.e., macroeconomic profit is (co-)produced by deficit-spending/money-creation, i.e., the growth of public debt. In free-market economies, public debt has increased with minor interruptions for over 200 years. Therefore, Qm:=(G−T)>0 has been a critical factor for Capitalism's survival. The free-market economy is continuously saved from breakdown by the deficit-spending/money-creating duo of treasury/central bank, i.e., the State. This means that the premise of legacy economics, i.e., that the unfettered free-market economy is a self-adjusting, self-stabilizing, and self-optimizing system, is axiomatically false. This means that economics is failed/fake science. Economists are not scientists. They are mostly silly wafflers for a low-IQ audience. Vincent Geloso is living proof. The free-market polity is an Oligarchy with parliament / treasury / central bank / capital markets / big business / three-letter agencies as integral parts. With the other determinants excluded for the moment, private financial wealth grows with public debt. Eventually, WeTheOligarchy owns the financial assets, and WeThePeople owe the public debt and are taxed for interest on government bonds as long as the debt is rolled over. Interest payments on the debt reduce their disposable income for an indefinite time. The government taxes WeThePeople on behalf of WeTheOligarchy. This profit/interest/tax triple-whopper produces wealth for WeTheOligarchy and debt and real-income reductions for WeThePeople. In addition, by reshuffling debt, resetting interest rates, and taking losses, the central bank acts as a direct profit pump. Its losses reappear mainly as profits of the business sector, particularly the banking sub-sector. In addition to legitimate monetary operations, the Fed is well-positioned to carry out or support illicit operations that are economically equivalent to putting counterfeit money into circulation. The volume of illicit deficit-spending and money-creation, as well as the quantity of Dark Money in circulation, is not publicly known. Therefore, Distribution Theory has no empirical leg to stand on. The financial sub-sector, big business, and billionaires recycle some of their profits and financial wealth to control major public, private, and political institutions. Thus, they corrupt the polity. In essence, this is how the self-alimentation and self-preservation of WeTheOligarchy work and how 'The Great Enrichment' comes about.
— AXEC (@EgmontHandtke) October 8, 2026
This blog connects to the AXEC Project which applies a superior method of economic analysis. The following comments have been posted on selected blogs as catalysts for the ongoing Paradigm Shift. The comments are brought together here for information. The full debates are directly accessible via the Blog-References. Scrap the lot and start again―that is what a Paradigm Shift is all about. Time to make economics a science.