August 19, 2019

MMT: The new Center of the Universe of political fraud

Comment on Warren Mosler on ‘Full Employment AND Price Stability’*

Own post, no external Blog-Reference

MMT claims that mainstream employment theory is false. So far, MMT is correct, mainstream economics is proto-scientific garbage since Adam Smith. But MMT claims also that MMT’s employment theory is superior. This claim is known to be false.#1, #2, #3

MMT is for the greater part storytelling and for the smaller part proper scientific analysis. The analysis is based on the MMT sectoral balances equation, i.e. (I−S)+(G−T)+(X−M)=0. This equation is provably false. The correct balances equation reads (I−S)+(G−T)+(X−M)−(Q−Yd)=0.#4 It boils down to Public Deficit (G−T) = Private Profit Q. Proper scientific analysis tells one that the MMT policy of deficit-spending/money-creation is a free-lunch program for the Oligarchy.#5

Needless to emphasize that such a program cannot be sold to WeThePeople. This is why MMT is repackaged as a social program. The argument of the MMT snake oil sellers is simply that MMT has the solution for all problems beginning with unemployment and ending with global warming.#6 This is just a political fraud.#7 Because MMT’s foundational equation is false the whole analytical superstructure is false. Because the theory is false, MMT’s economic policy advice has NO valid scientific foundations.

From this follows that both academic and non-academic MMTers are either stupid or corrupt or both. MMT is a plain political fraud and Warren Mosler is one of Wall Street’s loudest and busiest agents.#8-#14

Egmont Kakarot-Handtke

* The Center of the Universe
#1 Full employment through the price mechanism
#2 Full employment, the Phillips Curve, and the end of Gaganomics
#3 For details of the big picture see cross-references Employment/Phillips Curve
#4 Controlled demolition of MMT ― an exercise in elementary logic
#5 MMT’s true program
#6 MMT: If you’ve got a problem, I don’t care what it is, let me help
#7 MMT Progressives: The knife in the back of WeThePeople
#8 MMT, Warren Mosler, and the little helpers from Wall Street and Academia
#9 Warren Mosler: scientific dilettante and political fraudster
#10 You know you are in the political Circus Maximus when economists talk about Democracy/Liberty/Freedom
#11 Very busy these days: Wall Street’s agents
#12 MMT: fundamentally false
#13 MMT: The one deadly error/fraud of Warren Mosler
#14 Stephanie Kelton: MMT’s public farce

Related 'Keynes, Lerner, MMT, Trump, etc. and exploding profit'. For the full-spectrum refutation of MMT see cross-references MMT.

Twitter Oct  30

Source: Twitter