January 31, 2021
Political fraud and the silence of academia
Comment on Dirk Ehnts on ‘Happy 25th birthday, Modern Money Theory!’
COV19 is the best thing that could happen to Modern Monetary Theory/MMT. In the current emergency, almost everybody agrees that public deficit spending is the right thing to do and that all concerns about the permanent ― and now accelerated ― growth of public debt is far down on the priority list. This is a triumph for MMT because they are for a long time now the outspoken proponents of deficit-spending/money-creation as the solution to most economic problems.
MMTers have built a huge analytical/rhetorical superstructure around the benefits of public deficit-spending and the evils of austerity/neoliberalism and the wickedness of budget-balancers. So, with some justification they can say ‘We told you so’.#1
The problem with the increasing acceptance of MMT is that it does NOT prove that MMT is scientifically valid but that it has been heavily pushed through all media channels lately.#2
It has been proved that (i) MMT is scientifically worthless#3-#5 and (ii) a political fraud for the advantage of the Oligarchy and the disadvantage of WeThePeople.#6-#15
So, it has been established that MMT has nothing to do with science but is a plain political deception of WeThePeople.
Economics claims to be science and MMT is one of the major approaches. So, the question is, does the rest of academic economics not realize that MMT is materially/formally inconsistent, or do they realize it but help to cover the failure/fraud? In brief: are academic economists stupid or corrupt or both?
This question has to be answered for every single economist and this is going to take time. What can be said with certainty at this point is that the major approaches — Walrasianism, Keynesianism, Marxianism, Austrianism, MMT — are mutually contradictory, axiomatically false, materially/formally inconsistent and all got the foundational economic concept of profit wrong.#16-#20
So, the preliminary answer to the question of why academic economists do not refute MMT and ring the alarm of political fraud is that they themselves have never understood how the economy works. It holds for all of them: economists are not scientists but brain-dead agenda pushers in the political Circus Maximus.
As a consequence, Walrasians, Keynesians, Marxians, Austrians, and MMTers have to be expelled from the sciences.
#9 For the full-spectrum refutation of MMT see cross-references MMT
#16 The biggest scientific mistake of the last centuries, and it has much to do with academic economists