Jehu argues: “I approach the core assumptions of MMT from the perspective of Marx’s labor theory of value not from the perspective of bourgeois neoclassical theory.”
Unfortunately, the core assumptions of Marx are also false. Fact is that Marx never understood what profit is.#1 This is what Marxianism, Walrasianism, Keynesianism, Austrianism, and MMT have all in common.#2
From this follows that economics is a failed/fake science and economic debate between the different schools has never been more than brain-dead political blather.
Not only Marxian profit theory is provably false but also the theory of money: “It is not simply that the fiat no longer expresses the value of commodity, inconvertible fiat expresses the values of all commodities as zero. Since a unit of fiat contains no value, in an exchange it expresses the value of the commodity for which it is exchanged as zero.”
This is plain BS. The value of fiat money is given in the elementary case of the production-consumption economy as P=W/R or W/P=R, i.e the real wage is equal to the productivity.#3
Jehu, though, comes close to the secret charm of MMT, which boils down to the formula Public Deficit = Private Profit: “Here is the thing: MMT can show how it is possible for the state to use MMT to prop up profits; instead they choose to lobby support for more abuses by the state. They begin with the argument that if the ‘private sector’ (i.e., the capitalists) choose to save more than they can invest productively, the state is obligated to make this excessive accumulation possible by running deficits and borrowing the excess savings (capital) that can’t be invested profitably. In the long run, private firms could not accumulate more profits than they can invest profitably if the state did not run the deficits (and thus issue interest paying treasury bonds) that make this possible.” And “Not surprisingly, Kelton is now Chief Economist, U.S. Senate Budget Committee, where she is educating dumb congresspersons on the basic facts of modern money theory.”#4
MMT’s policy guidance does NOT promote the cause of WeThePeople but of the Oligarchy.#5 It does NOT matter at all whether deficit-spending/money-creation is caused by military or social spending, the axiomatically correct Profit Law says Public Deficit = Private Profit. It is deficit-spending per se that feeds the Oligarchy.#6 The MMTers demonstrative care for the unemployed, the environment, the elderly, the sick, and the poor is a fig leaf for pushing Wall Street’s agenda.
Jehu, the retarded Marxist, beats MMT for the wrong reasons but the beating is justified because MMT is full-blown proto-scientific garbage ― paradoxically ― just like Marxianism.
#1 Profit for Marxists
#2 See cross-references Profit
#3 The creation and value of money and near-monies
#4 The Kelton-Fraud
#5 MMT: Money-making for the one-percenters
#6 How MMT makes everybody happy
200+ years after Smith/Marx, you still do not understand that economics from Smith/Marx up to MMT is proto-scientific garbage, so that’s something.#1
#1 Marx’s bicentennial ― nothing to discuss, nothing to celebrate
You have studied economics and do not know what profit is? You are beyond help. Neither goodness nor I nor anybody else will school you or relieve you of your ignorance.
REPLY to Jehu on Nov 25
Yous ask: “Wait, wha… I thought money was debt! Is everything debt now?”
The general macroeconomic Profit Law Qm≡Yd+(I−S)+(G−T)+(X−M) boils down to Public Deficit = Private Profit. Loosely speaking, profit is the mirror image of a growing public debt. Politically speaking, MMT’s deficit-spending/money-creation is a program for the permanent self-alimentation of the Oligarchy.#1, #2
Marxists in their utter stupidity have not figured this out in the past 200 years.#3 Ultimately, profit does NOT originate from exploitation but from growing public/private debt.#4, #5
There is no need for “Looking forward to the book PROFIT: The first 5000 Years.” For details of the big picture see cross-references Profit.#6
Of course, there is a relationship between deficit-spending/money-creation, debt, and money.#7
The first thing Marxists have to realize is that the pivotal concept of exploitation has to be replaced by cross-over exploitation. This, of course, is too much for their two brain cells.
#1 MMT: A free lunch for the Oligarchy
#2 Keynes, Lerner, MMT, Trump and exploding profit
#3 Proﬁt for Marxists
#4 Capitalism, poverty, exploitation, and cross-over exploitation
#5 Ricardo and the invention of class war
#6 Cross-references Profit
#7 The creation and value of money and near-monies