February 7, 2019

What and where is profit?

Comment on Clint Ballinger’s ‘1000 CASTAWAYS: Fundamentals of Economics’


Since Adam Smith/Karl Marx, economists get profit wrong: “A satisfactory theory of profits is still elusive.” (Desai, Palgrave Online Dictionary, 2008)

Economics without a proper understanding of the concept of profit is like physics without a proper understanding of the concept of energy. This tells one that economics is to this day roughly at the level of Neanderthal science.#1, #2, #3

This is the actual state: The major approaches ― Walrasianism, Keynesianism, Marxianism, Austrianism ― are mutually contradictory, axiomatically false, materially/formally inconsistent and all got the foundational concept of the subject matter ― profit ― wrong.

Clint Ballinger is well aware of the dismal state of the dismal science and takes the gloves off with his new book: “Warren Mosler once said … the following: "Therefore, the key to understanding Modern Monetary Theory is this vertical-horizontal relationship. When one understands this, then Abba Lerner’s principles of functional finance become obvious." In some ways, 1000 CASTAWAYS is an attempt to express MMT to undergraduates/laypeople through this lens, Mosler’s statement, even making a book-length treatment of it. Also, I plan to purposefully pitch it to undergraduate Econ101 students reading Mankiw and similar BS textbooks, telling them it is literally a corrective to what they are being brainwashed in.”

So, let us make the instant acid test and search the whole text for the word profit. Is profit anywhere properly defined?#4 Nil return. Another economic model without profit. MMTers, too, mess macroeconomics up.#5, #6

Without further ado: cast away the 1000 CASTAWAYS because Clint Ballinger, like the rest of his retarded colleagues, gets the “Fundamentals of Economics” wrong.

Egmont Kakarot-Handtke

#1 The Profit Theory is False Since Adam Smith
#2 Profit for Marxists
#3 For details of the big picture see cross-references Profit
#4 How the Intelligent Non-Economist Can Refute Every Economist Hands Down
#5 Why the MMT benefactors of humanity never talk about profit
#6 For the full-spectrum refutation of MMT see cross-references MMT


Wikimedia AXEC109i