March 6, 2019

Austrians, too, are either stupid or corrupt or both

Comment on Bob Roddis on ‘Albert Edwards ― Abba Lerner ― Functional Finance’


To the argument: “Governments have to intervene in the national and global economy; these economies are not self-regulating.” Bob Roddis answers: “A totally false and baseless assertion. This is the BIG LIE of socialism and Keynesianism. Why do you think Keynes avoided refuting Hayek in The General Theory?” and “There is no need to ‘set’ a ‘desired level of activity’ if only because a market economy is totally ‘self-regulating’ until distorted by fiat money and violent intervention.”

Defamation is since the Sophists#1 the modus operandi of political imbeciles. Economics as a science deals with proofs of material and formal consistency and nothing else. Austrians never understood (i) how science works, (ii) how the economy works.

Austrianism is based on the provably false assumption that the economy is self-regulating. This is NOT the case.#2, #3 And this means that with regard to the pivotal point of economics, Keynes was right and Hayek was wrong.#4

Keynes, though, messed up macroeconomics. Here is the all-decisive blunder: “Income = value of output = consumption + investment. Saving = income − consumption. Therefore saving = investment.” (GT, p. 63) “His Collected Writings show that he wrestled to solve the Profit Puzzle up till the semi-final versions of his GT but in the end he gave up and discarded the draft chapter dealing with it.” (Tómasson et al.)

The fake scientist Keynes NEVER understood what profit is and thus ended with I=S ― one of the worst blunders since the Flat-Earth hypothesis.#5 However, neither pro-Keynesians like Lerner nor anti-Keynesians like Hayek spotted the lethal blunder in the last 80+ years.#6

Because Marxianism is refuted on all counts, there is NO use to defame Abba Lerner as a “COMMIE”.#7 Lerner was simply a scientifically incompetent economist and a useful political idiot just like Hayek and Keynes or, for that matter, the MMTers and Austrians of today.

So, why don’t you simply be friends? MMTers and Austrians will both end up at the Flat-Earth-Cemetery in the extra-large corner reserved for stupid and corrupt economists.

Egmont Kakarot-Handtke

#1 Wikipedia
#2 Could we, please, all focus on the key question of economics?
#3 Proof of the inherent instability of the market economy
#4 Hayek ― agenda pusher or scientist?
#5 Dear idiots, time to get saving and investment straight
#6 Keynes, Lerner, MMT, Trump and exploding profit
#7 Here is the long-overdue scientific death certificate for Marx and Marxists

For more about Austrianism see AXECquery.