July 29, 2019

MMT undermines democracy

Comment on Lars Syll on ‘Everything you want to know about MMT’

Blog-Reference and Blog-Reference

Lars Syll maintains: “One of the positive contributions of MMT, especially from a european point of view, is that it makes it transparently clear why the euro-experiment has been such a monumental disaster.” and “The problems ― created to a large extent by the euro ― may not only endanger our economies, but also our democracy itself.”

This is actually NOT the case for the simple reason that MMT is a scientifically failed approach just like Walrasianism, Keynesianism, Marxianism, Austrianism.#1, #2 The major approaches are mutually contradictory, axiomatically false, materially/formally inconsistent, and all got profit ― the foundational concept of the subject matter ― wrong. More specifically, the foundational MMT sectoral balances equation (I−S)+(G−T)+(X−M)=0 is provably false. The most important balance ― the profit of the business sector ― is missing. It is pretty obvious that a defective economic theory cannot explain anything.

Lars Syll is an incompetent scientist who has not realized that macroeconomics is ill-defined from Keynes onward to MMT. More specifically, he is too stupid to understand the elementary mathematics that underlies macroeconomics.#3

The macroeconomic Profit Law entails Public Deficit = Private Profit which means that the Oligarchy’s financial wealth and public debt grow in lockstep. The very characteristic of late Capitalism is that the so-called free-market economy is on the full life support of the state. Profit is in the main produced by the government through deficit-spending/money-creation. The Oligarchy, in turn, uses the opulent free lunches to corrupt what remains of the state’s legislative, executive, and judiciary institutions.

Clearly, the MMT policy of permanent deficit-spending/money-creation benefits the Oligarchy and not WeThePeople.#4 Lars Syll’s assertion that MMT is good for both economy and democracy is a continuation of economists’ long tradition of political fraud.#5

Egmont Kakarot-Handtke

#1 MMT: fundamentally false
#2 For the full-spectrum refutation of MMT see cross-references MMT
#3 Lars Syll ― a particularly stupid/corrupt fake scientist
#4 Is MMT good for WeThePeople or for the Oligarchy?
#5 You know you are in the political Circus Maximus when economists talk about Democracy/Liberty/Freedom

Related 'Trump and MMT: Make profits great again' and 'The real trouble with Capitalism: stupid/corrupt economists' and 'MMT: A new myth for WeThePeople' and 'Economists betray WeThePeople'.