Blog-Reference and Blog-Reference
David Ricardo defined the task of economics back in 1821 “To determine the laws which regulate this distribution [between rent, profit, wages], is the principal problem in Political Economy.” (Principles, p. 5)
Ricardo failed and so did economists to this day.#1 Neither orthodox nor heterodox economists know what profit is and therefore, they cannot solve the “principal problem in Political Economy”.
The reason for the failure of economists is trivial: economists are too stupid for the elementary algebra that underlies macroeconomics.
The axiomatically correct macroeconomic Profit Law is given by Q≡Yd+(I−S)+(G−T)+(X−M). With regard to the state, the Profit Law boils down to Q≡G−T, i.e. Public Deficit = Private Profit.
Public deficit-spending/money-creation is a free lunch program for the Oligarchy.#2 The fact is that the so-called free market economy is already for a long time on the life support of the State. Profit is in the main produced by public deficits. Financial wealth grows in lockstep with public debt. The Oligarchy, in turn, uses the opulent free lunches to corrupt what remains of the state’s legislative, executive, judiciary institutions.#3
Needless to emphasize that economists, too, work for the Oligarchy. Naive MMTers, who present themselves as Progressives and propagate deficit-spending/money-creation do not know or do not care that their policy is to the detriment of WeThePeople.#4 They instead enthuse about the blessings of a Job Guarantee or a Green New Deal.
It is economists themselves who work ― intentionally or unintentionally does NOT matter ― for the growing inequality of income and wealth.
#1 See cross-references Profit/Distribution
#2 Keynes, Lerner, MMT, Trump, etc. and exploding profit
#3 Criminals and the monetary order
#4 Dear idiots, MMTers are Wall Street’s agenda pushers
Related 'Econogenics in action' and 'How the 99 percent can bring overall profit of the 1 percent legally down to zero in 2017' and 'Economists’ periodically recurring crocodile tears about inequality'.
Rising global income inequality is not inevitable in the future