November 17, 2019

Mr. Wray goes to Washington

Comment on New Economic Perspectives on ‘Wray Appearing Before Congress’*

Blog-Reference and Blog-Reference Nov 18

MMT is two things: a novel theoretical approach that claims scientific superiority compared to the mainstream and political activism with a progressive agenda. This dual strategy violates the principle of the separation of politics and science. This First Principle of Science has been clearly formulated by J. S. Mill#1 but economists of all stripes have it forgotten. Today, economists are, with few exceptions, first agenda-pushers and second scientists.

The strict separation of the scientific realm and the political realm is non-negotiable because science cannot improve politics but politics always and everywhere corrupts science.

Contrary to their progressive appearances, MMTers are agenda-pushers for the Oligarchy.#2, #3, #4 The common denominator of all MMT policy proposals is deficit-spending/money-creation. This amounts to stealth taxation of WeThePeople and free lunches for the Oligarchy.#5

Needless to emphasize that MMTers play down all negative consequences of MMT policy. Here is what Randal Wray is going to tell in Washington: “His goal is to explain a) why we needn’t fear sovereign government deficits and debt; b) why in some important sense, deficits and rising debt are ‘normal’; c) the deficit is in any case largely outside the control of Congress; d) deficits and rising debt ratios will not lead to government insolvency or bankruptcy; e) all government payments can be made on time unless f) Congress forces a default (due to the debt ceiling it imposes).”

It is important to notice that the lethal effect of MMT policy is NOT inflation or bankruptcy. Because Public Deficit = Private Profit, the lethal effect is on the distribution of income and wealth. You will not learn much about distribution in Randall Wray’s testimony.

In essence, Wray tells Congress not to worry about the public debt but to do the bidding of Wall Street and to get out of the way of increasing deficit-spending/money-creation.#6-#9

Egmont Kakarot-Handtke

* New Economic Perspective
#1 “A scientific observer or reasoner, merely as such, is not an adviser for practice. His part is only to show that certain consequences follow from certain causes, and that to obtain certain ends, certain means are the most effectual. Whether the ends themselves are such as ought to be pursued, and if so, in what cases and to how great a length, it is no part of his business as a cultivator of science to decide, and science alone will never qualify him for the decision.”
#2 Is MMT good for WeThePeople or for the Oligarchy?
#3 Deficit cheerleaders ― the Oligarchy’s useful idiots
#4 How MMT enlightens Washington
#5 MMT: A free lunch for the Oligarchy
#6 Dear idiots, MMTers are Wall Street’s agenda pushers
#7 Very busy these days: Wall Street’s agents
#8 MMT: The fusion of Wall Street and Academia
#9 MMT and the overall political corruption of economics

Related 'Deficit-spending, public debt, and macroeconomic profit/loss' and 'No MMT illusions! YOU are going to pay for it' and 'How to pay for the war and to be bamboozled by economists' and 'Some nasty MMT surprises behind the time horizon' and 'Controlled demolition of MMT ― an exercise in elementary logic' and 'Links on Austerity' and 'The state of MMT? Stone-dead!' and 'How Randall Wray takes the piss out of the House Budget Committee'.

REPLY to Matt Franko on Nov 18

I say: “MMT is a novel theoretical approach that claims scientific superiority compared to the mainstream …”

You say: “Keep dreaming they claim no such thing …”

Bill Mitchell says: “The voodoo, I am afraid is actually on the other foot! There are some fundamental errors in the logic in the article that highlight why MMT is a superior paradigm for understanding how the monetary system actually operates in comparison to the mainstream logic that the author uses against it.”#1

#1 Voodoo economic revisionism abounds – and it is not MMT doing the voodoo

Twitter Nov 20

Source: Twitter