September 17, 2018

Good news for the one-percenters

Comment on Alan Longbon on ‘Good News: U.S. Government Posts A $214 Billion Deficit For August 2018, The U.S. Private Sector Posts A $214 Billion Surplus’

Blog-Reference and Blog-Reference

Alan Longbon rejoices: “The US budget deficit is $214 billion in August 2018; this is a net add of income to the private sector and a bumper month.” and “Professor Wynne Godley first comprehended the strategic importance of the accounting identity, which says that measured at current prices, the government’s budget balance, less the current account balance, by definition is equal to the private sector balance. GDP = Federal Spending [G]+ Non-Federal spending [P] + Net Exports [X].”

Unfortunately, the MMT balances equation is false. From the axiomatically correct Profit Law for the open economy with government and profit distribution, follows (I−S)+(G−T)+(X−M)−(Q−Yd)=0 which boils down to Public Deficit = Private Profit.

MMTer hide this distributional fact by lumping the business and the household sector together to the private sector and saying Public Deficit = Private Sector Surplus suggesting that private sector means WeThePeople. This is a verbal shell game. Given the saving/ dissaving of the household sector = WeThePeople, the public deficit increases the macroeconomic profit of the Oligarchy one to one.#1, #2

Alan Longbon’s good news is MMT’s shot in the head of WeThePeople.

#1 MMT and the single most stupid physicist
#2 Keynes, Lerner, MMT, Trump and exploding profit


REPLY to Tom Hickey, Konrad, The Economists Challenge, Calgacus on Sep 19

I am well aware that you suffer from ADHD but even you will realize that the issue is NOT the Job Guarantee but the “Good News: U.S. Government Posts A $214 Billion Deficit For August 2018, The U.S. Private Sector Posts A $214 Billion Surplus.” This is the MMT fraud in a nutshell.

There is no such thing as the private sector but there is the business sector and the household sector. Hence, the MMT balances equation is false. From the macroeconomic axiom follows the correct Profit Law,i.e. (I−S)+(G−T)+(X−M)−(Q−Yd)=0 which boils down to Public Deficit = Private Profit.

So Alan Longbon’s good news is NOT good news for WeThePeople but for the Oligarchy.

MMT is one of the most devious attempts to deceive WeThePeople since Karl Marx #1, #2 and you are part of it.

#1 Wolfgang Waldner Der preußische Regierungsagent Karl Marx
#2 Wolfgang Waldner Karl Marx, Prussian government agent

REPLY to Calgacus on Sep 20

You say: “Define ‘the private sector’ as ‘the business sector’ plus ‘the household sector’. Did Zeus strike me down with lightning? As far as I know, you are the only person ever who has objected to making such definitions. Why? The (impossible) burden of proof is on you to defend the bizarre assertion that some well-defined and useful ways of dividing up an economy are ‘real’ while others are not. This isn’t Karl Mannheim; it is just common sense and using natural language and accounting in a completely unexceptionable and humdrum way, when they entirely coincide.”

You are just parroting long refuted arguments.#1 To think that one is free to define anything in any way is the Humpty Dumpty Fallacy.#2, #3

Common sense is NOT a valid argument in science because since the Middle Ages it is well-known that the ‘sun goes up’ is well-accepted among common-sense imbeciles but not accepted among scientists.#4

Take notice that MMT has NO sound scientific foundations, MMT’s sectoral balances equations are mathematically false, MMTers violate scientific standards on a daily basis, MMT is political agenda pushing in a scientific bluff package.#5, #6

From the fact that Zeus does not strike you and the rest of brain-dead/corrupt MMTers down with lightning does not follow anything because that is not how science works. MMT is long dead because of material/formal inconsistency. The fact that common-sense folks have not realized that MMT is a proto-scientific zombie is only a redundant confirmation of their abysmal stupidity.

#1 Failed economics: The losers’ long list of lame excuses
#2 Profit, income, and the Humpty Dumpty Fallacy
#3 Wikipedia and the promotion of economists’ idiotism (II)
#4 Why J. S. Mill had no friendly word for the bigots and votaries of common sense
#5 For the full-spectrum refutation of MMT see cross-references MMT
#6 Are MMTers stupid or corrupt or both?

Twitter Sep 7, 2019

Source: U.S. Bureau of Economic Analysis