May 7, 2021

Profit: The most powerful formula of economics

Comment on Robert Vienneau on ‘Adam Smith On The Source Of Profits And Rents In The Exploitation Of The Worker’


Adam Smith, one of the founding fathers of economics, was not a particularly smart guy: “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)

Accordingly, he got the foundational concept of economics ― profit ― wrong. That is bad, but what is worse is that economists did not get it right to this day.#1-#3

To make matters short here, the macroeconomic 3-sector (household, business, government) Profit Law is given with Qm≡(I−Sm)+(G−T)+Yd, Legend: Qm business sector's monetary profit, Sm household sector's monetary saving, G government's expenditures, T taxes, Yd distributed profits. #4

The main drivers of macroeconomic profit/loss Qm are the difference between the business sector's investment expenditures I and the household sector's saving Sm, and the government's budget deficit/surplus (G−T). 

The first half of the formula is dominant in early capitalism, the second half is dominant in late capitalism.#5

It is pretty obvious that profit has NOTHING to do with the Labour Theory of Value.#6 So, Adam Smith and Karl Marx got the profit formula wrong and later Keynes.#7

Economics is proto-scientific garbage because economists in their abysmal scientific incompetence do not get the profit formula right to this day. Walrasianism, Keynesianism, Marxianism, Austrianism, MMT are mutually contradictory, axiomatically false, materially/formally inconsistent, and ALL get profit wrong.

Egmont Kakarot-Handtke




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Wikimedia AXEC143d

Occasional Tweets: The History of Economic Thought ― a lot of stuff for the scientific Orkus

 

Occasional Tweets: Learn MMT ― spot the fraud

 

For more on fraud see AXECquery.
For more on refutation see AXECquery.
For more on proof see AXECquery.

May 6, 2021

Occasional Tweets: MMT's battle for the People's Economy ― the mastermind's HQ

 


 People's Economy or Wall Street's Economy?


For more on Warren Mosler see AXECquery.

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Just another political fraud: MMT's People's Economy

May 5, 2021

Economists’ periodically recurring crocodile tears about inequality

Comment on Brad DeLong on ‘RHETORICAL QUESTION: Why Do Economists Ignore the Greatest of All Market Failures?’


Distribution is the greatest of all theory failures.

Economics is failed/fake science for 200+ years. Walrasianism, Keynesianism, Marxianism, Austrianism, MMT are mutually contradictory, axiomatically false, materially/formally inconsistent, and all got profit wrong. Because the foundational economic concept of profit is false the whole analytical superstructure is false. Economics is scientifically worthless.

Deficit-spending/money-creation is the cause of the extreme inequality of income and wealth. The 3-sector Profit Law Q≡(G−T)+(I−S)+Yd implies Public Deficit = Private Profit. Private financial wealth of the Oligarchy grows in lockstep with the public debt of WeThePeople. Public debt, in turn, is the interest cash cow that produces perpetual income which is taxed by the IRS from WeThePeople on behalf of the Oligarchy.

The Oligarchy, in turn, uses the opulent free lunches to corrupt what remains of the state’s legislative, executive, judiciary institutions. Ultimately, it is scientifically incompetent economists who work ― intentionally or unintentionally does NOT matter ― for the growing inequality of income/wealth. Only stupid/corrupt economists rhetorically wonder about the inequality of income/wealth.#1-#3

Egmont Kakarot-Handtke


Occasional Tweets: Why do economists waste so much time/ressources with Dead-Horse-Beating?

 

Towards the true economic theory