February 26, 2020

Master of MMT ― Master of proto-scientific garbage

Comment on Bill Mitchell on ‘Rounding off the Masterclass in London last weekend’*


Bill Mitchell tells his masterclass: “Viewed in a differ way, we have the accounting expression for the sectoral balances; (G – T) = (S – I) – (X – M + FNI)”

This equation is provably false because the balance of the business sector which is known as macroeconomic profit Q is missing. An economic approach that lacks the foundational magnitude profit is proto-scientific garbage.

Because the foundational macroeconomic relation is false the whole of MMT's analytical superstructure is false. Therefore, MMT's policy guidance has NO sound scientific foundations. Because of their absolute lack of scientific competence, MMTers are a public danger.

The correct sectoral balances equation reads (I−S)+(G−T)+(X−M)−(Q−Yd)=0.#1-#6

Egmont Kakarot-Handtke

* billy blog
#1 MMTers: too stupid for simple math
#2 #DrainTheScientificSwamp
#3 The sectoral balances obfuscation: stupidity or corruption?
#4 Wikipedia and the promotion of economists’ idiotism (II)
#5 Rectification of MMT macro accounting
#6 MMT is refuted on all counts, see cross-references MMT

Related 'Refuting MMT’s Macroeconomics Textbook'

Wikimedia AXEC118d

REPLY to S400 on Feb 27

Bill Mitchell is doing good old Keynesian macro in his masterclass. Unfortunately, he has not realized to this day that

• there is NO such thing as equilibrium in economics,
• the correct sectoral balances equation reads (I−S)+(G−T)+(X−M)−(Q−Yd)=0 with Q as macroeconomic profit,
• that the Keynesian multiplier lacks the price mechanism.#1, #2

Bill Mitchell claims: “So we have moved beyond meagre accounting at this stage.” No, MMT got not even the elementary algebra that underlies macro accounting right.

REPLY to S400 on Apr 3

You say: “I asked you two questions. You answered none.”

Here is the one answer to all your questions Stop Recycling Dead Economic Theories, Start the Paradigm Shift.