April 11, 2018

MMT vs Keynesianism: Nothing to chose

Comment on Thomas Palley on ‘Modern Money Theory (MMT) vs. Structural Keynesianism’

Blog-Reference and Blog-Reference and Blog-Reference

MMT and Keynesianism are macro approaches. The fact of the matter is that macrofoundations were intended to replace microfoundations but this did not happen and cannot happen because both approaches are axiomatically false which means that they are both beyond repair and that nothing less than a paradigm shift will do.

As a result, to compare MMT and Keynesianism is to compare a rotten apple to a rotten banana.

Fact is: MMT policy proposals are NOT based on sound scientific foundations.#1* MMTers do NOT understand how the price- and profit mechanism of the monetary economy works. The lethal flaws are:
• MMT has NO consistent macrofoundations,#2
• MMT’s profit theory is false,
• MMT’s sectoral balances equation is provably false,
• MMTers are too stupid for the elementary mathematics of National Accounting,
• MMTers violate scientific standards on a daily basis,
• MMT is political agenda pushing in a scientific bluff package.#3

MMT claims that public deficit is good for the ninety-nine-percenters and for democracy while the fact of the matter is that because of Public Deficit = Private Profit MMT policy is good for the one-percenters and for oligarchy.#4

With rather insignificant differences in detail, all these points hold also for Keynesianism.#5

Egmont Kakarot-Handtke

#1 See cross-references MMT
#2 Rectification of MMT macro accounting
#3 MMT is dead: An unfriendly critique of Bill Mitchell
#4 Keynes, Lerner, MMT, Trump and exploding profit
#5 See cross-references Keynesianism

* Wikimedia AXEC121i