The axiomatically correct Profit Law for the economy as a whole is given by Q≡Yd+(I−S)+(G−T)+(X−M) and reduces to Q≡(G−T) if Yd, I, S, X, M is taken out of the picture for a moment. The reduced Profit Law says that the monetary profit of the business sector Q is equal to the deficit (G−T>0) of the public sector, in a nutshell: Public Deficit = Private Profit.
So, from the standpoint of plain self-interest, the one-percenters and their useful academic spokespersons should consistently argue FOR deficit spending, and the ninety-nine-percenters and their academic spokespersons should consistently argue AGAINST it. Reality is different.#1, #2, #3, #4, #5
The communicative problem is this: the Oligarchy cannot argue, folks we need permanent public deficits for our economic well-being and growth of our cash-backed political power, so they let their academic trolls argue, folks YOU need public deficits for YOUR social well-being and YOUR survival in view of rapidly increasing environmental hazards.#6
It was MMTers like Warren Mosler who took it upon themselves to actively promote deficit-spending/money-creation and a continuously growing public debt as a benefit for WeThePeople. This is a fraud because just the opposite is actually the case, that is, MMT benefits the Oligarchy. What can be currently observed, is that not only a growing number of economists is jumping on the MMT bandwagon but also opinion leaders of the Oligarchy like Warren Buffet.#7
It seems that virtually all economic schools are now for socially/environmentally enlightened capitalism with state-generated profits for the Oligarchy. The remaining tiny problem is those pesky rent-seekers who simply take their public-deficit free lunch without pretending that they work hard for the best of humanity: “… the GND [Green New Deal] entails using true price based on true costs, which eliminates the extraction of economic rent through socializing negative externality, the bill for which is now coming due on global society and the global economy. The system is becoming increasingly dysfunctional, while the fat cats become fatter on rent extraction. Take away the rents and ‘capitalism’ works all by itself through actual market price by preempting rent-seeking and rent extraction (as many Austrian, economists have been saying from the right and Marxist and Marxian economists from the left.” A great coalition of economic trolls is currently in the making.
Tom Hickey fails to realize or to mention that nothing has ever produced more profit = rent than the MMT policy of deficit-spending/money-creation. Fabulous financial wealth is the mirror image of humungous public debt ($22 trillion and counting).#8
Since Adam Smith’s Wealth of Nations, economists fail to tell WeThePeople where profit and financial wealth really come from. MMTers are only the last in a long series of storytelling academic trolls.
#1 Austerity and the political games Progressives play
#2 MMT Progressives: stupid or corrupt or both?
#3 MMT: Academic snake oil for the people
#4 Economics as a cover for agenda pushing
#5 Stephanie Kelton and the self-destructive stupidity of the super-rich
#6 MMT: If you’ve got a problem, I don’t care what it is, let me help
#7 MMT for beginners
#8 Stephanie Kelton on how to become fabulously wealthy
Related 'The MMT propaganda runs hot' and 'Very busy, those Wall Street propaganda folks' and 'Look, how they jump on the deficit/profit bandwagon'.