MMT: The fusion of Wall Street and Academia

Comment on Bill Mitchell on ‘When two original MMT developers get together to discuss their work’

Blog-Reference and Blog-Reference

Bill Mitchell summarizes: “Last week, Warren Mosler and I had one of our regular catchups and we discussed at length the state of play in Modern Monetary Theory (MMT). We are quite protective of it. We mused about how we started out on this Project and where it has gone. As old stagers do when they get together. We also reflected and compared notes on what the state of MMT is now, given the increasing visibility of the ideas in the mainstream media all around the world and the proliferation of social media activists who have chosen to identify and promote our ideas. There were aspects of that development that we identified as being of concern for us and other aspects which we considered to be a cause for optimism (celebration is too strong a word).”

In other words, the two MMT chief propagandists congratulated themselves and laid down the 2019 communication strategy for the foot-soldiers a.k.a social media activists “who have chosen to identify and promote our ideas”. Unfortunately, these activists a.k.a trolls/operatives/shills/salespeople, impair the reputation of MMT because they “use the term MMT as a slogan rather than relating to it as a coherent and body of academic work in economic theory and practice that has been meticulously developed over more than 25 years.”

In order to restore reputation and credibility and to raise the low standards of social media communication,#1, #2 Bill Mitchell took it upon him to lay down the joint list of essential talking points of MMT propaganda.

What appears to be a bit strange at first glance is that Bill Mitchell and Warren Mosler do not address once the lethal critique of MMT, that is, that MMT’s policy of deficit-spending/money-creation is nothing but a free lunch for the Oligarchy. The word profit does not appear at all in the whole article. As the old quip says: Economics without profit is like Hamlet without the Prince of Denmark.

So, Bill Mitchell’s (Academia) and Warren Mosler’s (Wall Street) joint propaganda directive talks about everything between heaven and earth except MMT’s real political agenda, that is, money making for the Oligarchy.#3 Obviously, it is intended as a user manual for disinformation and political fraud.

Accordingly, the basic principles of MMT, as laid down by the Oligarchy’s spokespersons do not deal with how the monetary economy works but how the state works.

Basic Principle 1: “The state, from inception, as the sole supplier of the funds needed to pay taxes or buy the debt issued by the state, must necessarily impose tax liabilities on the non-government sector before it can spend.”

This is NOT correct. A monetary economy with zero taxes is a real possibility.#4, #5, #6 So, the whole MMT “money story” breaks down already in the first sentence.

There is no need to waste time with the rest of the story.#7

MMT is simply poor science. “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) MMTers do NOT have the true theory.

This is the fact of the matter. The axiomatically correct macroeconomic Profit Law reads Q_m=Y_d+(I−S_m)+(G−T)+(X−M). With regard to the government’s budget, it boils down to Public Deficit = Private Profit, i.e. (G−T)=Q_m. This piece of pure economic analysis translates into the scientific insight that MMT’s foundational sectoral balances equation is false, and into the political insight that MMT’s policy of deficit-spending/money-creation is nothing but a free lunch for the Oligarchy. In other words, “progressive” MMT policy is a political fraud.#8

The fraud is exactly located in this assertion: “In accounting terms, the government’s deficit (surplus) is exactly equal at all times the non-government sector’s surplus (deficit).”#9

MMT is a refuted economic theory and its proponents are either stupid or corrupt or both. Bill Mitchell’s and Warren Mosler’s joint propaganda directive is the incontrovertible proof.

The general public a.k.a WeThePeople is accustomed to the idea that the state is in the hands of the Oligarchy but upholds the idea of the independence, objectivity, and impartiality of science. Economics never has been a science but what Feynman called a cargo cult science. It is NOT a coincidence that both Adam Smith’s Wealth of Nations and the United States Declaration of Independence were published in 1776. Together they constitute the birth certificate of the US Oligarchy.

MMT stands firmly in this tradition. Its scientific content is zero, its scientific ethics is zero.#10

Egmont Kakarot-Handtke


#1 You are fighting for life? On all fronts? MMT can save you! Or maybe not?
#2 The Kelton-Fraud
#3 MMT: A free lunch for the Oligarchy
#4 The Third Way: Towards the happy zero-tax economy
#5 The ultimate ― analytical ― origin of money
#6 Nick Rowe’s soapbubbling about money
#7 For the full-spectrum refutation of MMT see cross-references MMT
#8 Economics: A pointless left-right wrestling show
#9 MMT and the magical profit disappearance
#10 MMT: Time to say goodbye

Related 'MMT, Warren Mosler, and the little helpers from Wall Street and Academia' and 'MMT is ALWAYS a bad deal for the 99-percenters' and 'MMT and the promotion of Wall Street socialism' and 'MMT: The one deadly error/fraud of Warren Mosler' and 'Cryptoeconomics ― the best of Bill Mitchell’s spam folder'.

***

REPLY to Joe on Dec 14

You say: “Imo, Principle 3 should be principle 1, as the sectoral balances is the most important economic principle, by far. It’s the basis of every single economic transaction, monetary or barter, ever done. I gained what you lost and you gained what I lost. We may decide we’re both better off but nevertheless the zero-sum nature of it remains. This principle alone rules out much of mainstream economic thought, especially in the European continental context. Everyone can’t be in surplus simultaneously.”

Mathematically true: Everyone can’t be in surplus simultaneously.

MMTers, though, got the math wrong. The blunder is exactly located in this assertion: “In accounting terms, the government’s deficit (surplus) is exactly equal at all times the non-government sector’s surplus (deficit).”

The axiomatically correct 3-sector relation reads (G−T)=Q_m+S_m,#1 i.e. the government’s deficit (surplus) is exactly equal at all times to the SUM of the business sector’s surplus (deficit) and the household sector’s surplus (deficit).

The business sector’s surplus Q_m is called profit and the household sector’s surplus S_m is called saving. The business sector’s deficit is called loss and the household sector’s deficit is called dissaving. All combinations of business sector’s profit/loss and household sector’s saving/dissaving that are equal to (G−T) are possible.

The blunder of Principle 3 invalidates the WHOLE of MMT. The storytellers Bill Mitchell and Warren Mosler are too stupid for the elementary mathematics that underlies macroeconomic accounting.#2 Needless to emphasize that the “social media activists who have chosen to identify and promote” their ideas understand even less. They are brain-dead agenda pushers as the posts of S400 and Clint Ballinger clearly demonstrate.


#1 Causally speaking it reads Q_m⇐(G−T)−S_m but this not the point at the moment. The point is that one has 3 sectors (government, business, household) and NOT 2 (government, “non-government”). The inadmissible collapsing of the business sector and household sector to the “non-government” sector makes profit disappear. This operation, the Humpty Dumpty Fallacy, is absolutely disqualifying for an academic economist.


#2 Wikipedia and the promotion of economists’ idiotism

***

REPLY to Kaivey on Dec 14

You say: “Egmont says they when the government deficit spends it creates inflation …”

No, I prove the exact opposite: deficit spending per se does NOT cause inflation.#1


#1 MMT and the inflation-red-herring

***

REPLY to Kaivey on Dec 15

You say: “… when the government deficit spends … the rich capture the money, but they capture most of people’s money in the end anyway. If people borrow from the banks, they capture this money as well when they buy goods and services. ”

The answer is in the mathematical truth: Everyone can’t be in surplus simultaneously.

So, if the balance of the government sector (G−T) is zero, and the balance of household sector Sm is zero, the business sector as a whole cannot make any profit, i.e. Qm=0. This follows from the macroeconomic Profit Law Qm=(G−T)−Sm.

So, “the rich” can capture NOTHING, i.e. cannot be in surplus, if the other sectors together are not in deficit. Profit for the economy as a whole does NOT depend on greediness or grabbiness or profit maximization or other psychological/behavioral factors but alone on the macroeconomic balances.

While it is true that one firm can increase profit by increasing productivity or lowering wages, this does NOT hold for the economy as a whole. This is the Fallacy of Composition.

“WeThePeople” can effortlessly prevent “the rich” from “capturing” profit by setting the sectoral balances right.#1 With deficit-spending/money-creation, though, MMTers do the exact OPPOSITE.


#1 How the 99 percent can bring overall profit of the 1 percent legally down to zero in 2017

You are fighting for life? On all fronts? MMT can save you! Or maybe not?

Comment on Richard Murphy on ‘The Reality Is Everything Must Change’

Blog-Reference

The crisis is real, says Richard Murphy. No, it’s not Trump, Brexit, trade war, or WWIII but climate change, a disabling fear for future well-being, a broken economic and social order, and not to forget, “private capital has ceased to be available for active investment it is now almost solely directed to rent seeking.”

Everything has to change. “Since that process will be incredibly expensive this requires capital and if that means state investment and co-ownership, so be it.”

How to achieve all this? Perhaps you think the workers are broke, the pensioners are at the subsistence level, and the middle class is indebted over both ears, let the rich pay for it!

No, wake up, get real! “The time for pussy-footing with new taxes to extract a little more from the rich is yesterday’s news. There is no time for that. This is the time to create money for change.”

This is the time for MMT. How does MMT solve all problems and save humanity? Essentially by deficit-spending/money-creation i.e. by increasing the public debt. MMT claims that this is a historically tried and tested method which does NOT cause inflation, an unbearable interest burden, or any problems for future generations. A state with monetary sovereignty and taxing power can never go broke, can prevent inflation, and there is no real debt burden because we owe the debt to ourselves, after all, one man’s debt is another man’s asset. That’s an eternal accounting truth.

So, what holds us back? It’s neoliberalism, the ideology of the ruling Oligarchy, which calls for budget balancing, austerity, and other tortures for the people.

MMT looks like sound economics and economics looks like sound science. Richard Murphy looks like a competent person. He is Professor of Practice in International Political Economy at City University, London and Director of Tax Research UK. He is a non-executive director of Cambridge Econometrics. He is a member of the Progressive Economy Forum.

Yes, all looks good. Every scam looks good. Every fraud comes with the aureole of salvation.

MMT is simply poor economics and economics has been poor science since Adam Smith/Karl Marx.

This is the fact of the matter. The macroeconomic Profit Law reads Qm=Yd+(I−Sm)+(G−T)+(X−M). With regard to the government’s budget, it boils down to Public Deficit = Private Profit, i.e. (G−T)=Qm. This piece of pure economic analysis translates into the scientific insight that MMT’s foundational sectoral balances equation is false, and into the political insight that MMT’s policy of deficit-spending/money-creation is nothing but a free lunch for the Oligarchy. In other words, “progressive” MMT policy is a political fraud.

MMT is a refuted economic theory and its proponents are either stupid or corrupt or both.#1, #2 MMTers are NOT friends-of-the-people but propagandists of the Oligarchy.#3 MMTers will NOT save humanity.  In an uncertain world, this is an absolute certainty.

Egmont Kakarot-Handtke


#1 MMT: Time to say goodbye
#2 Economics: A pointless left-right wrestling show
#3 Richard Murphy: the MMT fraudster dressed up as realist

Related 'MMT = proto-scientific junk + deception of the 99-percenters' and 'MMT and the overall political corruption of economics'. For the full-spectrum refutation of MMT see cross-references MMT.

MMT: Time to say goodbye

Comment on Clint Ballinger on ‘Tim Worstall ― The End Game Of Modern Monetary Theory’

Blog-Reference

The case against MMT is settled. MMT does NOT satisfy the scientific criteria of material and formal consistency. It is faulty macroeconomics and, as a consequence, bad politics.

The macroeconomic Profit Law reads Qm=Yd+(I−Sm)+(G−T)+(X−M) and has been derived from consistent macrofoundations a.k.a. axioms. The Law is testable with the precision of two decimal places. With regard to the government’s budget, the Profit Law boils down to Public Deficit = Private Profit. This piece of pure economic analysis translates into the scientific insight that the MMT sectoral balances equation is false and into the political insight that MMT’s policy of deficit-spending/money-creation is nothing but a free lunch for the Oligarchy. In other words, that “progressive” MMT policy is a political fraud.

Conclusion: Because MMT is provably false and its proponents are either stupid or corrupt or both, MMT has to be expelled from science/academia. Its proper habitat is the political swamp.

More is not to say about MMT, but Clint Ballinger cannot understand or accept this unassailable conclusion. So, he goes off-topic.

(i) “Egmont’s entire tower of babble (his own) is built around his ‘pure consumption economy’. This model is (extremely) simplified …”

In fact, the elementary production-consumption economy is the simplest possible macroeconomic configuration. ALL economic analysis has to start from the absolute analytical minimum and then to proceed with ever-increasing complexity.* This methodological procedure  is standard since more than 2000 years: “When the premises are certain, true, and primary, and the conclusion formally follows from them, this is demonstration, and produces scientific knowledge of a thing.” (Aristotle)

The elementary production-consumption economy is SUFFICIENT to prove that the MMT sectoral balances equation is false.#1, #2 This means, that MMT is scientifically dead already at the most elementary level.

From methodology, everyone could know: “In fact, the history of every science, including that of economics, teaches us that the elementary is the hotbed of the errors that count most.” (Georgescu-Roegen)

Because MMT is axiomatically false, the whole analytical superstructure is false. So, there is NO NEED to refute every MMT argument individually. If the premises are false, the whole theory is dead. Simple.

(ii) “Egmont states (regarding banking) that “These practical details are not forgotten but can be reintroduced at any time”. And yet he of course never does this.”

This is provably false. Money and banking have been treated extensively in working papers and blog posts, e.g. #3, #4 Any kindergartner can google this.

(iii) “Good economics has gone about as far as is possible in that direction, E.g., (Monetary Economics An Integrated Approach to Credit, Money, Income, Production and Wealth. Godley W., Lavoie, M. ) By far the most sophisticated and realistic effort in that direction is the ongoing Minsky Project by Steve Keen.”

Godley/Lavoie and Keen have been treated elsewhere and refuted.#5, #6 Any kindergartner can google this.

(iv) “He is better than the neoclassicals here, but only succeeds in creating a simplistic view of the monetary system that does not begin to approach the accuracy of MMT and circuit theory in this regard. He doesn’t seem to fully understand the role and importance of credit-money in the economy, and also believes there is a ‘fractional reserve system’ (there is not) which further implies a belief in loanable funds (another fallacy).

This is provably false. I “believe” neither in the fractional reserve system nor the loanable funds theory.#7, #8 Any kindergartner can google this.

In this style, it goes on. In the main, Clint Ballinger plays the silly rhetorical game of abstraction vs realism. This does not work.#9, #10 With their description of operational details, which MMT’s chief realist Warren Mosler trumpets as MMT’s chief merit, MMTers never got above the level of an information brochure of the FED’s PR-department. Monetary Theory, though, deals with the function and effects of money in the economy as a whole. Monetary theory presupposes macroeconomics. And the fact of the matter is that MMT gets the foundational macroeconomic relations wrong. The lengthy description of the organizational details of Treasury/Central Bank operations cannot make up for the theoretical blunders. MMT blindly repeats the Fallacy of Insufficient Abstraction.#11

When Clint Ballinger’s smokescreen of irrelevant arguments is taken away, the whole issue reduces to the all-decisive question which of the two macroeconomic relations is true/false:
(i) (I−S)+(G−T)+(X−M)=0 (MMT)
(ii) (I−S)+(G−T)+(X−M)−(Qm−Yd)=0 (AXEC).

This question can be empirically decided. So, why does the MMT community, which certainly does not lack academics with free access to macroeconomic data and generous support/funding from the ultimate beneficiaries of MMT policy, not carry out this econometric study?

The obvious answer is that the MMT community’s real business is NOT science but quite ordinary political agenda pushing. THIS is the point at issue but Clint Ballinger tries to filibuster away the fact that the “End Game Of Modern Monetary Theory” has already been lost.

So, there is nothing left for MMTers in general and Clint Ballinger, in particular, than to say goodbye.

Egmont Kakarot-Handtke


#1 Macro for dummies
#2 Wikipedia and the promotion of economists’ idiotism
#3 Essentials of Constructive Heterodoxy: Money, Credit, Interest
#4 Reconstructing the Quantity Theory
#5 The Emergence of Profit and Interest in the Monetary Circuit
#6 Where advanced Heterodoxy — represented by Steve Keen — took the wrong turn
#7 Basics of monetary theory: the two monies
#8 Fixing the loanable funds blunder
#9 Richard Murphy: the MMT fraudster dressed up as realist
#10 Bagehot’s wisdom and the silliness of modern economists
#11 Economics and the Fallacy of Insufficient Abstraction

Immediately preceding 'Economics: A pointless left-right wrestling show'

* Wikimedia, AXEC121e

Economists: Time to say goodbye

Comment on Tom Hickey on ‘Tim Worstall ― The End Game Of Modern Monetary Theory’

Blog-Reference

Tim Worstall asks: “What is the bottom of our differing opinions on the worth of micro v macro? Microeconomics is how the world works. How do we humans respond to incentives? Macroeconomics at least attempts to describe how to manage an economy.”

This, at last, is the key question. And here is the answer.

Microeconomics is how “humans respond to incentives”. Human behavior, though, is NOT AT ALL the business of economics but of psychology/sociology. So, to begin with, economists got their subject matter wrong. Microfoundations are false because economics is NOT a science of behavior.#1

The fatal methodological blunder of the microfoundations approach is that NO way leads from the second-guessing of Human Nature/motives/behavior/action to the understanding of how the economic system works. ALL human-centered/behavioral approaches invariably crash against the methodological wall of the Fallacy of Composition.

Microeconomics is so popular because people like to gossip about the actions and motives of other people. To explain the world with the (ultimately unknowable) motives of (real or imagined) actors gives the illusion of understanding.

So, economics has to move from microfoundations to macrofoundations. Keynes started this paradigm shift but messed it up. More precisely, he got the foundational macroeconomic relations wrong: “Income = value of output = consumption + investment. Saving = income − consumption. Therefore saving = investment.” (GT, p. 63) This is provably false for 80 years.

So what we have got is false microfoundations and false macrofoundations and an (logically impossible) integration of the two in the textbooks. Economic textbooks are the worst proto-scientific garbage since Samuelson’s firstling of 1948.#2

However, every generation of economics students happily swallowed this stuff enthusiastically with some inconsequential reservations on minor points here and there.

So, both microeconomics and macroeconomics are provably false. There is NO economics only clueless blather and political agenda pushing.

The fortunate circumstance for economists is that in the political Circus Maximus nobody needs and wants sound scientific foundations. Among morons, science is a nuisance. So economics became one more proof that one can tell the general public virtually any BS. And economists became useful political idiots who decorate themselves every year with the “Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel”.

Note the madness that failed/fake scientists not only claim to do science but sciences.

So, clearly, what has to be done is to move economics from false Walrasian microfoundations and false Keynesian macrofoundations to true macrofoundations. Needless to emphasize that the bunch of retarded losers that did not get profit right in the past 200+ years cannot perform a paradigm shift. For them, it is time to say goodbye.#3

Egmont Kakarot-Handtke


#1 Overreach: Economists have their fingers in every pie except real economics
#2 The father of modern economics and his imbecile kids
#3 The future of economics: why you will probably not be admitted to it, and why this is a good thing

Related 'Macroeconomics: Drain the scientific swamp' and 'Profit and the collective failure of economists' and 'Economics as fool’s paradise'. For details of the big picture see cross-references Failed/Fake Scientists and cross-references Political Economics/Stupidity/Corruption and cross-references Paradigm Shift.

Immediately preceding 'Economics: A pointless left-right wrestling show'.

***

AXEC141e

“We have sunk very low”

Comment on Barkley Rosser on ‘Trump More Seriously Kowtows To MBS’

Blog-Reference

Barkley Rosser, the failed economist, gives first priority to gossip, agenda pushing, false-hero worship, buddy promotion, and last priority to serious scientific work.

Barkley Rosser complains that the White House has recently sunk to a very low level. This distracts from the fact that the representative economist is already for 200+ years on a very low level with regard to scientific ethics and integrity.#1

Economics had been captured from the beginning by political agenda pushers. Political economics has produced nothing of scientific value from Adam Smith/Karl Marx onward to DSGE, New Keynesianism, and heterodox Pluralism.

On EconoSpeak, the representative economists Barkley Rosser and Sandwichman gossip, blather, disinform, misinform, distract, applaud one another, manipulate their blog and suppress posts they do not like. They have been on a very low level long before the White House.

Curiously, despite its poor scientific quality, EconoSpeak is regularly recommended by Mark Thoma of Economist’s View.#2

Now, Economist’s View is a respected hub of economic information exchange and they surely do not promote political crap and suppress posts they do not like?

Yes, they do.

The only true text line that Barkley Rosser has ― unintentionally ― spoken on behalf of the representative economist is: “We have sunk very low”.

Egmont Kakarot-Handtke


#1 Fake religion, fake science, fake news, and false complaints
#2 For example here and here

Related 'Feynman Integrity, fake science, and the econoblogosphere' and 'When fake scientists call out on fake politicians' and 'Cryptoeconomics ― the best of Mark Thoma’s spam folder' and 'Beware of the moralizing economist' and 'Economists’ rude awakening' and 'The end of political economics' and 'How to make economics a science'. For details of the big picture see cross-references Failed/Fake Scientists.

Economics: A pointless left-right wrestling show

Comment on Tom Hickey on ‘Tim Worstall ― The End Game Of Modern Monetary Theory’

Blog-Reference

Economics claims since Adam Smith/Karl Marx to be a science but is not. Actually, it is political agenda pushing that abuses the prestige of science.#1 However, in the political dogfight, the appeal to science can be counter-productive because a political argument must necessarily appeal to emotions and thus cut scientific thinking short.

So, the easiest method of ‘refutation’ is to take some bad examples from history and simply to associate them with the other side. This is how Tim Worstall ‘refutes’ MMT: “And then we’ve this cautionary little tale about how the end game plays out. There’re more than just the one of those cautionary tales of course, Zimbabwe and Venezuela come to mind. Or perhaps Argentina.”#2

This annoys Tom Hickey: “This passes for serious criticism now? In addition, Tim Worstall doesn’t seem to realize that MMT is not a policy proposal but rather based on how the existing monetary system operates currently.”

In other words, MMT is pure experience-based practice in the here and now. Here is the story of how Warren Mosler created what later became known as MMT: “The origin of MMT is ‘Soft Currency Economics’… which I wrote after spending an hour in the steam room with Don Rumsfeld at the Racquet Club in Chicago,… I had never read or even heard of Lerner, Knapp, Inness, Chartalism, and only knew Keynes by reading his quotes published by others. I ‘created’ what became know as ‘MMT’ entirely independently of prior economic thought. It came from my direct experience in actual monetary operations, much of which is also described in the book.”#3

The general public likes this steam-room approach and dislikes theory. Accordingly, the MMT propagandist Richard Murphy tries to make some bonus points by introducing himself as a practical realist who suffers from a false image: “Modern Monetary Theory does suffer from being called a theory.”#4

This annoys Bill Mitchell: “Specifically, there is a current out there that considers MMT to be incorrectly labelled because according to the argument there is no theory involved. It’s hard to imagine why anyone would think that but the fact that they do tells me that I should write this blog post. As I noted yesterday, our Macroeconomics textbook … is full of theory. It has a lot of description, taxonomy, accounting, history, and philosophy, but also a lot of theory that ties some of those other components together in a meaningful way. The T in MMT is not a misnomer.”#5

Clearly, MMTers want to have it both ways. The salespeople say that MMT is operationally true and nothing but common-sense policy, the academics insist that MMT is a superior scientific approach. And they prove this by relentlessly exposing the idiotism and failure of mainstream economics.

Clearly, MMT has to be judged according to well-established scientific criteria. Worstall’s attempt to ‘refute’ MMT by referring to recent historical examples of inflation is silly polemics. Unfortunately, more cannot be expected from the Senior Fellow of the Adam Smith Institute.

MMT has to be refuted scientifically by proving that it is materially or formally inconsistent. This has already happened.#6, #7

Retarded folks like Tim Worstall argue always politically and never can get out of their tiny left-right box. In his utter ignorance, Tim Worstall swallows the MMTers’ self-description as Progressives hook, line, and sinker: “As we know Modern Monetary Theory is the latest great new plan from the left.”

Tim Worstall does not realize that MMT is in fact “the latest great new plan” from Wall Street.#8 If he had done his scientific homework he would know how the monetary economy works and that the macroeconomic Profit Law implies Public Deficit = Private Profit. In other words, MMT is not left/progressive at all. MMT policy does not benefit WeThePeople but WeTheOligarchy. That is, the noisy left-right wrestling show distracts from the plain fact that MMT and the Adam Smith Institute push the same agenda.

Egmont Kakarot-Handtke


#1 The real problem with the economics Nobel
#2 Continental Telegraph, The End Game Of Modern Monetary Theory
#3 The Johnsville News, Modern Monetary Theory (MMT) in a Nutshell
#4 Richard Murphy: the MMT fraudster dressed up as realist
#5 Understanding what the T in MMT involves
#6 The final implosion of MMT
#7 MMT = Modern Monetary Trash
#8 How MMT enlightens Washington

Related 'MMT = Trumponomics' and 'MMT: for the record' and 'How MMT makes everybody happy' and 'MMT in a nutshell' and 'Fake religion, fake science, fake news, and false complaints'. For the full-spectrum refutation of MMT see cross-references MMT.

Immediately following 'Economists: Time to say goodbye'.

***

Wikimedia, AXEC106h

***

REPLY to Tim Worstall, Joe, Bob Roddis, etc on Nov 28

This thread started with the debt-inflation red-herring and ended with the allocation/calculation red-herring. Economists’ main function in society has always been to keep the audience entertained with angels-on-a-pinpoint talk shows and to prevent that any economic issue ever gets settled.

The lethal argument against the “guvmint can’t do nuthin right” imbeciles is that the business sector cannot exist without the government’s production of profit which shows itself empirically in the permanently growing public debt. In other words, the profitability of the business sector is NOT an indicator of productivity/efficiency but of deficit-spending/money-creation.

From the axiomatically correct macroeconomic Profit Law Qm=Yd+(I−Sm)+(G−T)+(X−M) follows that Public Deficit = Private Profit if all other variables are taken out of the picture for a moment.

So, it is the public deficit that produces macroeconomic profit and NOT any allegedly superior allocation of resources or the smartness/greed of capitalists or the alleged self-regulation by supply-demand-equilibrium. These factors influence merely the DISTRIBUTION of macroeconomic profit BETWEEN firms and NOT the overall volume.

In the early phase of capitalism, growth, i.e. the excess of the business sector’s investment expenditures I over the household sectors saving Sm produces macroeconomic profit Qm. In late capitalism, the government sector provides the life support of the business sector with deficit-spending, i.e. with G greater than T.

What the US government does in fact since many years is to artificially prolong the lifetime of an imploding economic system by steadily increasing the public debt. One collateral damage is that this also prolongs the blather-time of the “guvmint can’t do nuthin right” imbeciles.

The ongoing brain-dead blah blah of both MMTers and mainstreamers is incontrovertible proof that economists NEVER understood how the monetary economy works.

***

REPLY to Detroit Dan, Bob Roddis on Nov 28

Detroit Dan maintains: “Private businesses have brought us all sorts of marvelous technology, …”

This is the Waiter Fallacy. It is the cook who has produced the delicious meal, the waiter only transported it with more or less elegance to the table. The generous tip, though, goes to the smiling fool who cannot even prepare scrambled eggs.

All the marvelous things of a civilization come from scientists/engineers and not from businessmen.

It was Tesla who invented AC and not businessmen: “The investors showed little interest in Tesla’s ideas for new types of alternating current motors and electrical transmission equipment. After the utility was up and running in 1886, they decided that the manufacturing side of the business was too competitive and opted to simply run an electric utility. They formed a new utility company, abandoning Tesla’s company and leaving the inventor penniless.” (Wikipedia)

The idea that “private businesses have brought us all sorts of marvelous technology” is the classical case of cultural misappropriation.

***

REPLY to Magpie, Tim Worstall on Nov 29

Now comes Magpie: “No red herrings. No bullshit. Forbes may accept that, we don’t. That’s no allowable critique here. You came here voluntarily, you play by our rules. Show us you know what you are talking about.”

As they say in Britain: “Keep your breath to cool your porridge”. The Senior Fellow of the Adam Smith Institute is not here for an exchange of profound economic knowledge but for another asinine dog and pony exercise.

Tim Worstall remains firmly in the tradition of the paradigmatic economist Adam Smith: “Smith ... disliked whatever went beyond plain common sense. He never moved above the heads of even the dullest readers. He led them on gently, encouraging them by trivialities and homely observations, making them feel comfortable all along.” (Schumpeter)

Nothing has changed since the founding fathers. The mission of the Senior Fellow of the Adam Smith Institute is to sell this message: The market economy/capitalism is the best of all possible economic worlds. Yes, there are crises, and unemployment, and corruption, and exploitation, and the distribution is perhaps a little biased, but, as everybody knows, the Soviets tried to implement a  better system and it didn’t work. End of mantra.

Now, Magpie tells Tim Worstall that he cannot sell his bullshit to the audience of MNE, here “you play by our rules”.

What are those rules? At MNE “we” sell the message that deficit-spending/money-creation benefits WeThePeople and that MMTers are Progressives who care for the unemployed, the environment, humanity, in particular, the health and happiness of children, the elderly, and the poor. To argue against this amounts to the self-exclusion from the worldwide community of good people.

“Our” rules include the small-print that anyone who proves that  MMT is, in fact, proto-scientific garbage and that the MMT sales team does not promote knowledge about how the monetary economy works but pushes the agenda of the Oligarchy in the garb of social policy will be stopped in the tracks by a sky-high heap of political BS.

***

REPLY to Tim Worstall on Nov 29

You have been introduced as Senior Fellow of the Adam Smith Institute: “The Adam Smith Institute is a neoliberal think tank and lobbying group based in the United Kingdom and named after Adam Smith, a Scottish moral philosopher and classical economist.” (Google profile)

A think tank has NOTHING to do with thinking. But, of course, nobody wants to characterize his type of business as brainwashing.

Everyone who rallies behind the False-Hero-Memorial of Adam Smith exposes himself as an incompetent scientist. Adam Smith did not get the pivotal concept of economics ― profit ― right and this means that his final resting place in the history of scientific thought is a hole in the darkest corner of the Flat-Earth-Cemetery.#1, #2

The fact of the matter is that, in 200+ years, economists have not made any progress towards an understanding of how the economy works. The Profit Theory is still false and this means that the rest of the analytical superstructure is false. This holds for Classical Economics, Walrasianism, Keynesianism, Marxianism, Austrianism and MMT.#3

So, the political proposals/solutions of both late-Smithians and MMTers lack sound scientific foundations. In the final analysis, both is political fraud.

This is the difference between scientific thinking and think-tank thinking: “A genuine inquirer aims to find out the truth of some question, whatever the color of that truth. … A pseudo-inquirer seeks to make a case for the truth of some proposition(s) determined in advance. There are two kinds of pseudo-inquirer, the sham and the fake. A sham reasoner is concerned, not to find out how things really are, but to make a case for some immovably-held preconceived conviction. A fake reasoner is concerned, not to find out how things really are, but to advance himself by making a case for some proposition to the truth-value of which he is indifferent.” (Haack)

You say: “How amazing that you know what I think.” I don’t know what you think. But I know that you cannot think.

#1 The Profit Theory is False Since Adam Smith

#2 New economic thinking = old political fake

#3 Down with idiocy!

***

REPLY to Tim Worstall on Nov 29

You say: “Seriously, don’t you people read any standard economics at all? Inflation from spending is just Keynes, inflation from increased money supply is Friedman.”

Are you really thus far behind the curve? Keynes and Friedman are not quotable in an economic argument because they are scientifically long dead.#1, #2, #3

Take notice that there is NO relation between a growing public debt and inflation.#4, #5 The lethal consequence of MMT policy is NOT on inflation but on distribution.

#1 Forget Keynes

#2 Milton Friedman, fake scientist

#3 Forget Friedman, forget Keynes

#4 MMT and the inflation-red-herring

#5 Economics as tireless production of proto-scientific toilet paper: inflation theory as an example

***

REPLY to Tim Worstall on Nov30

You say: “MMT says that, in certain circumstances, you should run a surplus. As does Keynes, as does Friedman.”

That’s not the point. The point is Zimbabwe, i.e. your argument that the MMT policy of deficit-spending/money-creation causes inflation. That is not the case. MMT policy causes the metrics of macroeconomic distribution, i.e. share of profit/financial wealth, to increase. In other words, MMT policy is money-making for the Oligarchy in the bluff package of social policy.#1

Both Keynes’ and Friedman’s inflation-, distribution-, employment- and profit theory is provably false. So, they are scientifically dead and only ignoramuses still quote them.

#1 Keynes, Lerner, MMT, Trump and exploding profit

***

REPLY to Calgacus on Nov 30

Calgacus feels the urge to emphasize: “By the way, AXEC / E.K-H Egmont Kakarot-Handtke is not an MMTer, but a critic of MMT with his own theories.”

This is correct but irrelevant. In science, people are not much interested in membership cards or in opinions or in collecting likes/followers or in self-presentations, but rather in contributions to the growth of knowledge. The identity proof of a scientist is that he has something to say that helps to understand how the universe or a subdomain of it works.

So, it does not matter at all whether and why a person belongs to the MMT community or not. As Schumpeter put it: “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.”

True, I am NOT a member/follower of MMT, I am NOT a mere critic of MMT but have proved that MM-Theory does NOT satisfy the scientific criteria of material/formal consistency.#1 What I in addition say is that MMTers are too stupid for the elementary mathematics that underlies macroeconomics and that they have no idea of what science is all about. And what I never forget to say that MMT is just another political fraud.

#1 For the full-spectrum refutation of MMT see cross-references MMT

***

REPLY to Clint Ballinger, Tim Worstall on Dec 1

Clint Ballinger advises Tim Worstall: “Do the hard accounting, and you will see currency issuers don’t borrow their own tax credits, there is no money multiplier (and why that matters), why interest rate manipulation does not do what you think it does, and on and on.”

Yes, evidently, MMT is superior to the think-tank economics of the Senior Weasel of the Adam Smith Institute. In fact, anything is superior to mainstream economics because, in scientific terms, mainstream economics is the absolute zero. You just cannot go deeper.

But, although better, MMT is still not good enough. MMT, too, gets the foundational macroeconomic relations wrong. It does not matter whether this is because of stupidity or fraud, MMT’s sectoral balances equation is provably false.#1 This is lethal to the whole approach.

So, the MMT Weasel Clint Ballinger has to be advised in turn: “Do the hard accounting, and you will see that Public Deficit = Private Profit#2, and why MMT policy guidance benefits the one-percenters and NOT the ninety-nine-percenters.” Effectively, that is, behind the theatrical hostilities, the MMT Weasel Clint Ballinger and the Senior Weasel Tim Worstall are on the same Oligarchy page.

For those who suspect for a long time that Clint Ballinger is an incompetent scientist who suffers from multiple self-delusions here are the proofs.#3

#1 MMT and the magical profit disappearance

#2 Rectification of MMT macro accounting

#3 How MMT makes everybody happy

MMT: A free lunch for the Oligarchy

Twitter-Threads here and here

***

REPLY to Detroit Dan, Tim Worstall, Andrew Anderson, Joe, Calgacus, etcetera on Dec 2

You can blather on until you are blue in the face. This does not alter the fact that Walrasianism, Keynesianism, Marxianism, Austrianism, and MMT are mutually contradictory, axiomatically false, materially/formally inconsistent and that all got the foundational concept of the subject matter ― profit ― wrong.

By consequence, the policy guidance of all economic schools lacks sound scientific foundations. This makes it plain to the general public that economics is nothing more than political agenda pushing and economists are nothing more than useful political idiots.

Therefore, the first thing to do for the salvation of humanity is to flush failed economics and blathering economists down the scientific toilet.

***

REPLY to Clint Ballinger on Dec 2

Clint Ballinger parrots the foundational blunder of economics, i.e. that the “… distribution between households and business is _fundamentally_ political.”

What Clint Ballinger does not get is that Profit Theory is false and by consequence Distribution Theory.#1, #2

What Clint Ballinger does not get is that economics is a system science. Retarded economists still think it is a social science.#3 The so-called social sciences are what Feynman called cargo cult science. Economics has been hijacked and corrupted by the agenda pushers of Political Economy.#4 Since Adam Smith/Karl Marx economics has not risen above the proto-scientific level.

The axiomatically correct macrofoundations approach is NOT for low life political economists. They are beyond hope. For them it is FLUSH.#5

#1 The Profit Theory is False Since Adam Smith. What About the True Distribution Theory?

#2 Essentials of Constructive Heterodoxy: Profit

#3 The Science-of-Man fallacy

#4 “We have sunk very low”

MMT and the overall political corruption of economics

Legitimacy lost

For details of the big picture see cross-references Political Economics/Stupidity/Corruption

#5 The end of political economics

***

REPLY to Clint Ballinger on Dec 3

That is the actual state of economics, messed up

• profit theory, for 200+ years,

• microfoundations, for 140+ years,

• macrofoundations, for 80+ years,

• the application of elementary logic and mathematics since the founding fathers.

The representative economist has swallowed the micro-crap supply-demand-equilibrium and the macro-crap I=S hook, line, and sinker and does not know what profit is.#1

MMTers are too stupid for the elementary mathematics that underlies macro-accounting.

Come on, Clint Ballinger, prove that you are not one of this sorry bunch of useful political idiots and tell the blog audience which of the two macroeconomic relations is true/false:

(i) (I−S)+(G−T)+(X−M)=0

(ii) (I−S)+(G−T)+(X−M)−(Qm−Yd)=0?

#1 How the intelligent non-economist can refute every economist hands down

***

REPLY to S400 on Dec 3

You say: “Take notice that EKHs answers always follows the same script: you’re too stupid....”

That is not quite correct, I say that MMTers are stupid or corrupt or both. For all with a deeper interest, links to the proofs are provided.

Your silly post confirms that the conclusion about MMTers is accurate. Therefore, it cannot often enough be repeated.

Try to refute the macroeconomic Profit Law and if you cannot you are out of economics.

***

REPLY to Detroit Dan, Clint Ballinger, Tim Worstall, S400 on Dec 4

You cannot answer the question which of the two macroeconomic relations is true/false

(i) (I−S)+(G−T)+(X−M)=0

(ii) (I−S)+(G−T)+(X−M)−(Qm−Yd)=0?

Obviously, you have no idea of how the monetary economy works and have never heard of the Ancient Greek Philosopher’s Rule of Human Communication: If you know nothing, say nothing.

Time for you to say goodbye.

***

Chronological insertion 'Economists: Time to say goodbye' Dec 4

***

REPLY to Detroit Dan, Tim Worstall, Clint Ballinger, Joe on Dec 5

“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)

Neither Walrasians, nor Keynesians, nor Marxians, nor Austrians, nor MMTers have the true theory. Just the opposite, these approaches are provably false. Economics is scientifically unacceptable.

With your continuing blather, you perfectly fit the definition of an economist as a person who talks out of his ass about shit he does not know.

***

REPLY to Clint Ballinger on Dec 6

You say: “Give us an article of REAL criticism of MMT.”

Here it is.

MMT is scientifically worthless because it is based on a provably false sectoral balances equation. Because the foundational equation is false the whole analytical superstructure is false. The MMT balances equation obscures the macroeconomic fact that Public Deficit = Private Profit. As a consequence, the MMT policy of deficit-spending/money-creation benefits the Oligarchy and NOT WeThePeople. The claim of MMTers to be the real Progressives is, therefore, a political fraud.#1

#1 For details see cross-references MMT

***

REPLY to Tim Worstall on Dec 6

There is the political sphere and there is the scientific sphere. The political sphere is about agenda pushing, the scientific sphere is about knowledge.

In the political sphere, every imbecile is entitled to climb on a soapbox and to vomit the content of his dysfunctional brain all over the place.

In the scientific sphere, people are supposed to contribute something to the growth of knowledge. Scientific knowledge, in turn, is well-defined by material and formal consistency. Confused off-topic blather is NOT appreciated in the scientific sphere.

The most important thing is to keep the political and the scientific sphere strictly apart. The mixing of politics and science always corrupts science. This starts with Smith/Marx and continues over the whole right/left spectrum from Hayek, Keynes, Friedman, Krugman, Keen, Mosler, Kelton to Clint Ballinger and Tim Worstall.

Take notice that in the political sphere the Legitimate Sovereign makes the ultimate decision. The Spartans, for example, asked their Oracle whether they should go to war or not. If the Oracle said no, they simply went home. So, for them, the Oracle was the Legitimate Sovereign. To figure out, who the Legitimate Sovereign is in a given historical situation is the business of Political Science and NOT of Economics.

You say: “We’ll end up with 45, 55% of GDP going through government. … Now, politically, I’d oppose this, I think that’s far too much of everything to be running through the political decision making process.”

This statement, clearly, belongs to the political sphere. And it is as good as any other opinion. However, if the Legitimate Sovereign decides that the state’s share is 50% of GDP then that’s it. That is what sovereignty means. It is a matter of indifference whether those who maintain that 10% is in order and those that 90% is in order are dissatisfied.

The task of economists as scientists is to figure out how the economy works and how the decisions of the Legitimate Sovereign can best be implemented. The task of economists is, metaphorically, to figure out the principles of flying and how to get something heavier than air off the ground and safely to a remote destination. The economist as a scientist has not more to say than anybody else what the destination should be.#2

Needless to emphasize that blathering economists have got nothing off the ground in the past 200+ years. What they have produced instead is 1001 stories about flying carpets.

#1 Legitimacy lost

#2 For details see cross-references Political Economics

***

REPLY to Clint Ballinger on Dec 6

Learn reading. It has been explicitly stated above: “To figure out, who the Legitimate Sovereign is in a given historical situation is the business of Political Science and NOT of Economics.”

The task of economists as scientists is to figure out how the actual economy works. On this score, you are as bad a failure as one can get.

Just in case you have not realized it, your so-called debate with Tim Worstall is absolutely vacuous. Re-read your own stuff and weep.

***

REPLY to Clint Ballinger on Dec 6

You detract from the point at issue and ask: “Yes, but why is the food so bad? And why can’t I get an upgrade to 1st class? And WHY do I always have to go though Atlanta!?”

Surely, the Freakonomics guy can easily answer those questions. But neither he nor you know which of the two macroeconomic relations is true/false

(i) (I−S)+(G−T)+(X−M)=0

(ii) (I−S)+(G−T)+(X−M)−(Qm−Yd)=0.

And this means that you cannot answer the fundamental question of how the monetary economy works. But lack of competence does not prevent you from blathering with the Senior Ignoramus of the Adam Smith Institute about economic policy.

Get it, right policy depends on true theory. And both microfounded Neoclassics and macrofounded MMT are axiomatically false.

This is why economists’ policy advice is lethal, which did no go unnoticed: “Late in life, moreover, he [Napoleon] claimed that he had always believed that if an empire were made of granite the ideas of economists if listened to, would suffice to reduce it to dust.” (Viner)

And this is why economists are only admitted as clowns to the political Circus Maximus where they keep the audience entertained with a profound debate about why everybody always has to go through Atlanta.

***

REPLY to Clint Ballinger on Dec 7

You again try to detract from the point at issue: “Tim ― totally agree that the important thing to look at in already developed countries are the details of taxation. Sure a lot can be learned from Sweden, a lot seems to be about localism v national gov, but anyway, these are the issues we should be talking about.”

No, we should be talking about that MMTers are stupid and corrupt agenda pushers who sell a free-lunch policy for the Oligarchy in the bluff package of social policy and how we can sue economists for 200+ years of economic damages and how we can get rid of these failed/fake scientists and how we can make economics a science.

***

REPLY to Clint Ballinger on Dec 7

You know nothing and I know that you cannot tell which of the two macroeconomic relations is true/false

(i) (I−S)+(G−T)+(X−M)=0

(ii) (I−S)+(G−T)+(X−M)−(Qm−Yd)=0.

And you suffer from multiple self-delusions. For example, you hallucinate: “And I know for a fact that you cannot disprove the Cambridge UK position, nor the work of Pasinetti.”

Fact is that Cambridge UK’s distribution theory has already been thoroughly disproved.#1

The Profit Theory is false from Smith/Ricardo#2,#3/Marx#4 onward to Keynes/Kaldor/ Kalecki/Pasinetti. All these sorry members of the Cambridge School#5 go therefore down the scientific toilet. FLUSH. Oh, I forgot Clint Ballinger. FLUSH.

#1 Income Distribution, Profit, and Real Shares

#2 Ricardo and the invention of class war

#3 When Ricardo Saw Profit, He Called It Rent: On the Vice of Parochial Realism

#4 Profit for Marxists

#5 Marshall and the Cambridge School of plain economic gibberish

***

REPLY to Clint Ballinger on Dec 8

“Income = value of output = consumption + investment. Saving = income − consumption. Therefore saving = investment.” (Keynes, GT, p. 63) The formal core of the GT is provably false for 80 years and this tells one all about economists’ scientific incompetence in general and the Cambridge School in particular.#1

Pasinetti’s idiocy consists of not having realized Keynes’ foundational blunder. The Cambridge distribution theories are all predicated on “Investment = Savings”.#2

There is no escape for you, Clint Ballinger. FLUSH. 

#1 For details see cross-references Refutation of I=S

#2 Wikipedia, Pasinetti, The Cambridge equation and Pasinetti’s theorem

***

REPLY to Clint Ballinger on Dec 8

I am waiting until you give me the PRECISE summary of Pasinetti’s refutation of the axiomatically correct macroeconomic Profit Law. Should be an easy copy-paste for you.

In the meantime, I summarize your contribution to the point at issue: zero.

The point at issue is MMT and the unassailable proof of the stupidity/corruption of MMTers.#1

Because it is a sure bet that nobody will ever see your pertinent summary of Pasinetti, its FLUSH for you, NOW.

#1 For the full-spectrum refutation of MMT see cross-references MMT

***

REPLY to Clint Ballinger on Dec 8

This thread is about MMT. You have NOT realized that the foundational MMT sectoral balances equation (I−S)+(G−T)+(X−M)=0 is false and that the AXEC equation (I−S)+(G−T)+(X−M)−(Qm−Yd)=0 is true.

So you are out of any serious debate before it even starts.

In order to deflect from this embarrassment, you throw up the name of Pasinetti. But, of course, you cannot give a summary that proves that Pasinetti has said something sensible concerning the point at issue. In order to deflect from this embarrassment, you throw up the name of Sraffa without giving a summary that proves that Sraffa has said anything sensible concerning the point at issue.

Looks a bit desperate, your argumentation. But what is really bad for you is that Sraffa, too, has already been refuted.#1

You have not realized to this day that the Cambridge School of Loose Verbal Reasoning has NOT produced one piece of sound science,#2 so there is no hope for you. Perhaps in your next incarnation, you will be endowed with more than two brain cells. Then, perhaps, you could be admitted to a serious debate.

#1 The futile attempt to recycle Sraffa

#2 Quixotic Keynes exegesis

***

REPLY to Clint Ballinger and the rest of political agenda pushers on Dec 9

Clint Ballinger parrots Pasinetti’s paper: “It shows that it is impossible to axiomatize distribution and ‘demonstrated conclusively that there is no relationship between the productivity of various factors of production ― capital, labour, materials ― and the distribution of income in society’ as one comment summarizes it.”

Remember G. B. Shaw’s dictum: “People who say it cannot be done should not interrupt those who are doing it.”

I have derived the macroeconomic Profit Law Qm=Yd−Sm+I+(G−T)+(X−M) from consistent macrofoundations a.k.a. axioms. Note that the Law is testable with the precision of two decimal places. With regard to the government’s budget, the Profit Law boils down to Public Deficit = Private Profit. This piece of pure economic analysis translates into the scientific insight that the MMT sectoral balances equation is false and into the political insight that MMT’s policy of deficit-spending/money-creation is nothing but a free lunch for the Oligarchy. In other words, that “progressive” MMT policy is a political fraud.

Everyone is free to try to empirically refute the Profit Law, which is the scientifically correct way to settle the matter.

Needless to emphasize that MMTers cannot refute the proof of political fraud, so they desperately try to bury it under a sky-high heap of BS about capitalism/communism, the healthcare systems in Sweden, USA, Hong Kong and elsewhere, chemical processes in the brain, property taxation in the OECD, social democracy and democratic socialism, Sanders, Corbyn, Lenin, carbon tax, plastic pollution, and finally the CCC, which is long known to have been nothing but a laughable dancing-angels-on-a-pinpoint debate. What the CCC has made unmistakably clear to everyone is that economists are after 200+ years still confused about the foundational concepts of their subject matter, i.e. profit and capital.

Obviously, MMTers’ mission has never been to contribute to scientific knowledge but to produce false promises, disinformation, misinformation, never-ending filibuster, silly claims, vacuous assertions, and talk show entertainment in order that everything remains where it has been since Adam Smith, that is, in the bottomless proto-scientific swamp of inconclusive blather.#1, #2

MMT is provably false and that is the end of MMT ― except MMTers can empirically disprove the macroeconomic Profit Law. Everyone knows by now that this will never happen.

Political economists have never produced and will never produce anything of scientific value. So here is the final FLUSH for Clint Ballinger and the rest of proto-scientific dumbshits,#3 useful political idiots, agenda pushers, and fraudsters.

High time to drain the swamp.

#1 It is better to be precisely right than roughly wrong

#2 And the answer is NCND ― economics after 200+ years of Glomarization

#3 MMT: How mathematical incompetence helps the Kelton-Fraud

***

Wikimedia, AXEC143

***

Chronological insertion 'MMT: Time to say goodbye' Dec 10

***

REPLY to Clint Ballinger on Dec 11

The point at issue is the proof that MMT is materially and formally inconsistent. Instead of accepting a clear-cut falsification, as a scientist is supposed to do, you desperately try to change the issue. This, basically, is the corrupt methodology of economics since the founding fathers: “In economics we should strive to proceed, wherever we can, exactly according to the standards of the other, more advanced, sciences, where it is not possible, once an issue has been decided, to continue to write about it as if nothing had happened.” (Morgenstern, 1941)

MMT stands firmly in this bad tradition with Walrasianism, Keynesianism, Marxianism, Austrianism as precursors. This is why economics is still stuck at the proto-scientific level and merely recycles the same old topics without definitive conclusion and consequence. Economics is not a science but a heap of falsified theories.

There can be no progress when falsified theories are not discarded and replaced by superior theories and there effectively has been no progress as everyone can see when the fake science economics is compared to the genuine sciences. Supply-demand-equilibrium, what an idiocy for 200+ years!

Needless to emphasize that the traditional anti-scientific corruption of economists gained a new life in the econoblogosphere. MMT academics are no exception with regard to censorship/suppression/disinformation/manipulation.#1, #2

After being back on track, the answer to your distracting question about taxation is: Any kindergartner can google it.#3

#1 Cryptoeconomics ― the best of Bill Mitchell’s spam folder

#2 “We have sunk very low”

#3 The Third Way: Towards the happy zero-tax economy

***

#DrainTheScientificSwamp

Photographic evidence of the glorious self-debunking of MMT.

***

REPLY to Clint Ballinger on Dec 11

You ask: “So how do you know that ‘the Oligarchy’ is not the ‘Legitimate Sovereign’??”

This is NOT a question for economists to clarify but for Political Science in a scientific way and for the people in a practical way.

You say: “Glad I asked the tax question.” Not really.

The Zero-Tax Economy* is the logical endpoint of MMT agenda pushing. Behind the social smokescreen and the operational nitty-gritty, MMT policy guidance boils down to deficit-spending/money-creation. Zero-Tax means maximum deficit-spending. Because Public Deficit = Private Profit, Zero-Tax means maximum profit for the economy as a whole. If the economy is in the hands of the Oligarchy, then Zero-Tax means maximum profit for the Oligarchy, which is perfectly in order if the Oligarchy is the Legitimate Sovereign.

My guess is that up to this point you are enthusiastic about the idea of a Zero-Tax economy. I understand that you are not at all enthusiastic about full profit distribution to the owner of the firms if the legitimate owner is not private but public. This would be a bit too “progressive” for an MMTer. After all, MMT’s fight for the cause of WeThePeople was never meant to be taken literally.

* Notice: The concept of a Zero-Tax Economy is protected by Copyright © and Trademark ®.