From the 25 items of Scott Fullwiler’s lesson, 23 relate to semantics (e.g. “Anyone saying MMT = ‘print money,’ … is getting MMT dead wrong.”) and technicalities of monetary policy (“So, choice to issue bonds or not is not about ‘quantity’ impact of a deficit, but about ‘how’ CB chooses to achieve its target rate.”)
The blunder/fraud of MMT is to be found in Tweets 5 and 14:
“5. What matters for macro impact is the deficit itself, and how it is created (spending/taxing priorities), since the deficit is creating net financial wealth in the pvt sector (note I did NOT say ‘real’ wealth (!)).”
14. Putting this all together . . . MMT has NEVER argued that ‘printing money’ as conventionally interpreted is necessary to carry out MMT policy proposals. All deficits create net financial wealth for pvt sector, regardless of ‘finance’ method.”
The point is that there is NO such thing as a “pvt/private sector”, to begin with, but there is the business sector (balance → profit/loss) and the household sector (balance → saving/dissaving). More precisely: the fundamental MMT sectoral balances equation is provably false, i.e.
MMT=False → (I−S)+(G−T)+(X−M)=0,
AXEC=True → (I−S)+(G−T)+(X−M)−(Q−Yd)=0.
The true balances equation entails Public Deficit (G−T) = Private Profit Q which means that the Oligarchy’s financial wealth and public debt (currently $22 trillion) grow in lockstep. Hence the MMTers’ arguments for permanent deficit-spending/money-creation have a tangible use-value for the Oligarchy. MMT policy guidance is, contrary to the social/ environmental optic, ultimately to the detriment of WeThePeople.#1, #2, #3, #4, #5
The distributional effect of MMT policy is obfuscated with the formulation “All deficits create net financial wealth for pvt sector” which leads people to falsely associate pvt sector = WeThePeople. Nothing could be further from the truth.
So, MMTers in general and Scott Fullwiler, in particular, are either stupid because they do not understand the elementary mathematics that underlies macroeconomics or they are corrupt agenda pushers for the Oligarchy.
#1 Stephanie Kelton’s legendary Plain-Sight-Ink-Trick
#2 The Kelton-Fraud
#3 Down with idiocy!
#4 MMT: fundamentally false
#5 For the full-spectrum refutation of MMT see cross-references MMT
Related 'Controlled demolition of MMT ― an exercise in elementary logic' and 'Wikipedia and the promotion of economists’ idiotism (II)'