Blog-Reference and Blog-Reference
Sandwichman reports what Kalecki, Keynes, Beveridge, Collins, and many others have said about full employment, unemployment, leisure, and the general strike. This historical review is pointless because it tells us only what people have hallucinated about the labor market. Never do we get the scientifically correct answer to how overall employment is determined.
Neither Kalecki, nor Keynes, nor the rest of gossip economists ever understood how the price and profit mechanism works.#1, #2 Because of this, their policy guidance never had valid scientific foundations and never rose above the trivialities of common sense, folk psychology, and populism.
MMT is not different in this respect.#3
The noteworthy feature of the MMT Job Guarantee proposal is NOT that it is particularly innovative or institutionally superior but that it is financed by deficit spending. And exactly at this point, the political fraud comes in.
According to the axiomatically correct macroeconomic Profit Law, it always holds Public Deficit = Private Profit. Therefore, MMT is a program for the one-percenters and NOT for the ninety-nine-percenters, or the working class, or the proletariat. It is NOT the Job Guarantee that is specific to MMT but deficit-spending/money-creation.
Sandwichman does not get the point and his collection of dead arguments from the long history of economic blathering is at best good as a distraction from the original purpose of MMT, that is, to push overall profit.#4
Will Sandwichman ever understand the Employment Law?#5 This is what he fantasizes about his competence: “I have been on the full employment beat for over 20 years so I think I have a pretty good grasp of the terrain.” After 20 years in the deep woods, there is no hope left for the man.
#1 The Three Fatal Mistakes of Yesterday Economics: Profit, I=S, Employment
#2 Keynes’ Employment Function and the Gratuitous Phillips Curve Disaster
#3 Full employment through the price mechanism
#4 Keynes, Lerner, MMT, Trump and exploding profit
#5 The set screws of overall and individual employment
You ask: “Er ― what about if a deficit takes the form of handing out more to the unemployed or the elderly?”
The macroeconomic Profit Law reads Qm≡Yd+I−Sm+(G−T)+(X−M) for an open economy (X−M) with a government sector (G−T) and with business investment I, household sector saving/dissaving Sm, and distributed profit Yd.
It does NOT MATTER AT ALL whether the budget deficit (G−T) is created by handing out more money to the military, the unemployed, the elderly, or for Stephanie Kelton’s program A Pony for Every American.
A budget deficit means ALWAYS a monetary profit of equal amount for the business sector and imperceptible taxation in real terms for the household sector. The social goodies MMT promises are in any case paid for in real terms by the ninety-nine-percenters themselves.#2
Nothing has enriched the rich more in the last decades than public deficit spending and MMT’s political fraud consists in keeping the public debt growing by producing a social smokescreen.#3
Only morons, retarded economists like Ralph Musgrave, and Marxist philosophers like Tom Hickey do not see the correlation between the growth of financial wealth on the one hand and the growth of public/private debt on the other.
#1 MMT, money creation, stealth taxation, and redistribution
#2 MMT is idiocy and fraud
#3 How MMT fools the ninety-nine-percenters