It is pretty obvious that Dave Denison has NO idea of how the monetary economy works. Because of this, he cannot properly assess MMT.
The underlying problem is that the monetary economy (capitalism or communism does not matter) is NOT a self-optimizing equilibrium system but eventually breaks down.#1
The 2-sector Profit Law#3 Qm≡I−Sm tells one that macroeconomic profit is positive in a growing economy as long as the business sector’s investment is greater than the household sector’s saving. If this fails, macroeconomic profit turns into loss and the economy breaks down. This must eventually happen, what is unknown is the exact date.#2
However, there is a way to postpone the breakdown. The Profit Law including the state sector reads Qm≡(I−Sm)+(G−T), that is, the second component of macroeconomic profit is the state sector’s deficit. It holds Public Deficit = Private Profit.
This means that the greater part of the profit in the United States is actually produced by the state. The US economy hangs for a long time already on the state ventilator for its survival.
The MMT policy of deficit spending/money creation is ultimately a means of postponing the breakdown of the US economy. From a political standpoint, the COVID pandemic provides a good rationale to mute the budget-balancers and to blow the deficit up to hitherto unknown proportions.
The volume of the deficit and the popularity of MMT#4 is a good metric for the acceleration of the breakdown.#5
If MMTers intend to learn economics I recommend the new textbook Sovereign Economics.#6
* The Baffler
#1 Major Defects of the Market Economy
#2 Mathematical Proof of the Breakdown of Capitalism
#4 Keynes, Lerner, MMT, Trump, etc. and exploding profit
#5 Criminals and the monetary order
#6 Amazon or BoD
Predicting the future is not for scientists but for prophets and other sociopaths.#1 Today it is mainly used by the media for the psychological conditioning of a mass audience.
#1 Scientists do not predict
I say “Scientists do not predict the future.”
You ask “What are climate scientists doing?”
Same thing. Genuine scientists try to figure out how the climate works. Political agenda pushers like Al Gore then grab some preliminary research findings, blow the big political tuba, and buy the stocks of the companies that are the most probably climate change winners.
Future-tellers or warners are political/psychological frauds since time immemorial. Read the so-called holy books if you want to know how the prophecy business works.
Of course, scientists who have a true theory can make a conditional prediction, i.e. if a, b, c the outcome will be y.
Economics is a failed science and economists do not have the true theory. So, all debates about what the future will bring are vacuous prophecies, i.e. attempts to brainwash the public.
Go to Zerohedge or YouTube and you can have as many economic prophesies as you like. Nothing of it is a scientifically acceptable prediction because economists have no true theory. Economics has never been anything else than political agenda pushing, MMT included.
You say “There is not even a framework in terms of which scientific theories could be generated and evaluated in social science, including economics, that provide a general explanation of data in the field in any way comparable to natural science. This owing to the subject matter not being ergodic and also being historically relative and complex, for example.”
Yes, one still hears these silly excuses. I have collected them all.#1 And obviously, you have not realized to this day that they are thoroughly refuted.
You say “A lot of very smart people have been working on formalizating a general explanation in social science for a long time — economists, mathematicians, biologists and physicists included.” How do you know that these people were very smart? Because you have been told. And you are a herd creature. Being a dumb person yourself you cannot possibly identify a very smart person. So you have to rely on hearsay and end up believing that Stephanie Kelton is the “Smartest Economist In America”#2 while she is plain political fraud.
The provable fact is that the representative economist is a methodological swampie#3, #4 and too stupid for the elementary algebra of macroeconomics.#5, #6 And that settles the matter for good. Because the axiomatic foundations of economics are false to this day the whole analytical superstructure is false. Because of this, economic policy has no sound scientific foundations. Because of this, economics is iatrogenic.#7 Meaning, that scientifically incompetent economists are the root cause of economic crises and the social devastation they bring with them.
Your methodological argumentation is the usual post-modern blather which amounts to anything-goes and ensures that all remains in the swamp of inconclusiveness where “nothing is clear and everything is possible”. (Keynes)#8 The swamp is the preferred habitat of fake scientists, i.e. political agenda pushers.
Economists are stupid/corrupt and a scientific disgrace. This is a proven fact.#9 They even admit that the so-called social sciences are not quite up to scientific standards but then award themselves the “Bank of Sweden Prize in Economic Sciences …” The insane plural gives the fraud away.
At the Flat-Earth-Cemetery they have already dug the graves for orthodox economists, heterodox economists, MMTers, and you and your troll buddies.#10 Times to shut up and go.
#1 Failed economics: The losers’ long list of lame excuses
#2 Down with idiocy!
#3 Economics, methodology, morals ― a creepy freak-show
#4 How incompetent are economic methodologists? Very!
#5 Wikipedia, economics, scientific knowledge, or political agenda pushing?
#6 Economists: at the end of the wrong track
#7 Iatrogenic economics
#8 Economic recommendations out of the swamp between true and false
#9 Ch. 13, The indelible scientific disgrace of economics, in Sovereign Economics
#10 They can be found easily by searching for #EconBlocker