February 9, 2019

Fraud comes always in the cloak of charity, salvation, or the threat of doom

Comment on Jacob Weindling on ‘What Is Modern Monetary Theory and Why Is It So Important to the Green New Deal?’*

Blog-Reference

Jacob Weindling asserts: “… the question of … how do you pay for the Green New Deal?’ has already been answered. The HuffPo piece was written by Professor of Economics and Public Policy at Stony Brook University, Stephanie Kelton, who was also the Chief Economist for the Democrats on the U.S. Senate Budget Committee. Yesterday, she posted a thread outlining some legitimate economic questions that MMT claims to answer.” and “The question of how to pay for the Green New Deal is pretty silly when you take a step back and look at the larger issue at hand. Scientists are nearly in unanimous agreement that unless we do something unprecedented in the next twelve years, the Earth will become irreversibly hostile to human life in twenty years, with an estimated cost of $69 trillion to deal with this apocalyptic future.”

Jacob Weindling is either a confused blatherer or a fake Progressive agenda pusher.#1

The answer to the question “How are you going to pay for it” has two progressive answers: the genuine and the fake. The genuine Progressive answers: simple, by cutting military spending,#2 The fake Progressive answers: simple, by deficit-spending/money-creation.

MMTers are fake Progressives. In fact, MMTers are agenda pushers for the Oligarchy. How can one be sure of it?

Economically, there are two questions for government spending (i) on what is the money spent (e.g. (ia) administrative-, (ib) military-, (ic) social budget, etcetera), and (ii) is government spending G less, equal, or greater than taxation T, i.e. (iia) G<T, (iib) G=T, (iic) G>T? Needless to emphasize that these questions are constantly confused, whether intentionally or unintentionally does not matter. The question is further confused by lumping it together with full employment policy.

MMTers claim that the answer to almost all economic/social problems is permanent deficit-spending/money-creation with some caveats with regard to inflation.

Now, MMT policy has one property that makes it disadvantageous for WeThePeople and advantageous for the Oligarchy,#3, #4, #5 i.e. because of the macroeconomic Profit Law it holds Public Deficit = Private Profit. So, no matter how the money is allocated between administrative, military, social, environmental spending, as long as there is deficit-spending/money-creation the Oligarchy makes a profit equal to the deficit.#6

As a rule of thumb, the financial wealth of the Oligarchy grows in lockstep with the public debt. In other words, the fabulous wealth in the U.S. is the mirror image of fabulous public debt ($21.5 trillion).

No matter what MMTers claim that permanent public deficit spending is good for,#6 it is ultimately good for the permanent self-alimentation of the Oligarchy.

While MMTers have hitherto posed as friendly helpers for the unemployed and socially disadvantaged, they now sell deficit spending as the last hope for saving humanity and the planet.

MMT is proto-scientific garbage and social fraud. This is what economics has been since Adam Smith/Karl Marx. Economics is failed/fake science. The major approaches ― Walrasianism, Keynesianism, Marxianism, Austrianism, MMT ― are mutually contradictory, axiomatically false, materially/formally inconsistent, and all got the foundational concept of the subject matter ― profit ― wrong.

Egmont Kakarot-Handtke


* Paste
#1 MMT Progressives: stupid or corrupt or both?
#2 What the world wants and how to pay for it using military expenditures
#3 How MMT makes everybody happy
#4 MMT, money creation, stealth taxation, and redistribution
#5 MMT is ALWAYS a bad deal for the 99-percenters
#6 MMT: If you’ve got a problem, I don’t care what it is, let me help

Related 'The Kelton-Fraud' and 'Down with idiocy!' and 'Stephanie Kelton on how to become fabulously wealthy' and 'MMT sucks' and 'MMTers are NOT Friends-of-the-People'.