October 1, 2018

Mission impossible: economists join WeThePeople

Comment on Kaivey on ‘David Dayen: Nancy Pelosi Promises That Democrats Will Handcuff The Democrat Agenda If They Take The House’


Kaivey summarizes: “Warren Mosler recommended this saying it had good quotes from Stephanie Kelton. Some people say that Warren Mosler did not develop MMT for left wing politics, but he seems to like what Stephanie Kelton has to say about public spending. I think we can get rid off the myth that Warren Mosler doesn’t approve of left wing economists like Stephanie Kelton. But are they left wing, they are only proposing a better type of capitalism?”

From the macroeconomic Profit Law follows Public Deficit = Private Profit. So, clearly, the MMT policy of deficit-spending/money-creation benefits alone the Oligarchy. In its naked form, MMT is absolutely unsaleable to WeThePeople. Hence, MMT needs a social fig leaf. It is amply provided by folks like Stephanie Kelton and other self-styled Progressives.#1

Most people have learned by now that, more often than not, politics is a fraud. This holds in any case for MMT. What is made to appear as social policy in the interest of WeThePeople is in effect a policy of perpetual self-alimentation of the Oligarchy.

The heavily biased distribution of income and financial wealth, which is with overwhelming clarity before all eyes, is a direct result of continuous deficit-spending/money-creation and the resulting perpetual growth of public debt.#2

The demonstrative care for jobs, health, education, social cohesion, public infrastructure, environment, etcetera is the banner that Stephanie Kelton and the rest of the MMT sales team waves before the peoples’ eyes in order to cover their one-percenter agenda.

As we speak, Stephanie Kelton, her academic fellow campaigners, and the hyper-active MMT sales force on the social media pull off “one of the greatest cons ever perpetrated on the American people.”#3

Academic economics has entirely abandoned scientific standards and integrity. Economists over the whole spectrum from Orthodoxy to Heterodoxy, from Paul Krugman to Brad DeLong to Simon Wren-Lewis to Stephanie Kelton to Bill Mitchell to Lars Syll to Yanis Varoufakis are full-time media clowns and useful political idiots.

What we have with MMT is Warren Mosler and other Wall Street folks as promoters of MMT and some academics who provide social credibility and some proto-scientific voodoo.#4, #5

As a matter of principle, it is entirely beyond the capacity of economists in general and MMT, in particular, to make a valuable contribution to the advancement of humanity because economics has no sound scientific foundations to this day.#6

Egmont Kakarot-Handtke

#1 MMT: How the Oligarchy communicates with WeThePeople
#2 Keynes, Lerner, MMT, Trump. Biden and exploding profit
#3 Stephanie and Noah ― economics at the intellectual zero lower bound
#4 MMT and the promotion of Wall Street's idea of social policy
#5 How MMT enlightens Washington
#6 For details of the big picture see cross-references Political Economics/Stupidity/Corruption

Related 'MMT and grassroots movements' and 'How MMT enlightens Washington' and 'How Bill Mitchell stalks Jeremy Corbyn' and 'MMTers are NOT Friends-of-the-People'.

REPLY to Kaivey on Oct 2

You say: “Eventually, in the end, the money might end up in the banks of the oligarchs, but it would have driven much of the economy by then creating jobs and prosperity. If it eventuality ends up in the banks of the oligarchs, then why not have an extra tax on them to get it back again.”

You have some serious problems with logic.
(i) MMT is refuted on all counts.#1
(ii) MMT policy guidance has no sound scientific foundations.
(iii) Because of the macroeconomic Profit Law, the MMT policy of deficit-spending/money-creation enriches the Oligarchy.
(iv) The social benefits that are promised by MMT are paid for in real terms via stealth taxation by WeThePeople themselves.
(v) The increasing macroeconomic profit that comes with deficit-spending/money-creation increases the funds available to the Oligarchy for lobbying.
(vi) So, the Oligarchy could spend more money to lobby for an extra tax in order to neutralize the positive effect of deficit-spending/money-creation on their overall profit.

Yes, they could. But even you understand that this will NOT happen in the remaining lifetime of this planet.

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