AXEC: New Foundations of Economics: April 2024

April 30, 2024

Occasional Xs: What economists really do (CCXXXI)

#Economics #FailedFakeScience

The correct term for the German polity is NOT #Democracy but #Oligarchy with key institutions like #Parliament / #Treasury / #CentralBank / #BigBusiness as integral parts. This institutional setup thrives on #DeficitSpendingMoneyCreation. The…
— E.K-H (@AXECorg) April 30, 2024

Occasional Xs: What economists really do (CCXXX)

#Economics #FailedFakeScience

For 200+ years, economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent &… pic.twitter.com/pNGcfjPzZI
— E.K-H (@AXECorg) April 30, 2024

Occasional Xs: Economics curriculum ― the transmutation of plain morons to graduate morons (X)

#Economics #FailedFakeScience #Curriculum

For 200+ years, economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally…
— E.K-H (@AXECorg) April 30, 2024

Occasional Xs: What economists really do (CCXXIX)

#Economics #FailedFakeScience

The #MarketEconomy runs on #Profit. The 3-sector #ProfitLaw Qm≡(G−T)+(I−Sm)+Yd implies that the greater part is produced by #DeficitSpendingMoneyCreation. So, the #PrivateFinancialWealth of the #Oligarchy grows with the #PublicDebt of… pic.twitter.com/RY1ZbY6Xrb
— E.K-H (@AXECorg) April 30, 2024

April 29, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXX)

#Economics #FailedFakeScience #Austrianism

For 200+ years, economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally…
— E.K-H (@AXECorg) April 29, 2024

Occasional Xs: The futile attempt to recycle MMT (XCVI)

#MMT #BadScienceBadPolicyBadPeople #SectoralBalances

The so-called #FreeMarketEconomy runs on profit. The axiomatically correct macroeconomic #ProfitLaw / #BalancesEquation reads (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0. Because they are too stupid for elementary #Algebra, #MMTers get… pic.twitter.com/puZ0UsU833
— E.K-H (@AXECorg) April 29, 2024

Occasional Xs: Clueless economists / Distribution, Inequality (VI)

#Economics #FailedFakeScience

“A major error in Mill was the separation of production and distribution, and thus distribution is a function of political will not economic forces.”

Economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism,…
— E.K-H (@AXECorg) April 29, 2024

April 28, 2024

Occasional Xs: Clueless economists / Science (LXXXV)

#Economics #FailedFakeScience

Economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got #Profit… pic.twitter.com/XkF5A8Fzzv
— E.K-H (@AXECorg) April 28, 2024

Also at Chad Reese

April 27, 2024

Occasional Xs: Clueless economists / War (V)

#Economics #War #GeoPolitics #GeoEconomics

“Aber um #Wirtschaftspolitik geht es im Grunde nicht, sondern eher um einen Abriss des Sozialstaats.”

USA/EUR/GER is at war with RUS. #WarEconomy means #Impoverishment / #SocialDeprivation / #DeficitSpendingMoneyCreation / exploding…
— E.K-H (@AXECorg) April 27, 2024

Occasional Xs: The futile attempt to recycle MMT (XCV)

#MMT #BadScienceBadPolicyBadPeople #SectoralBalances

The so-called #FreeMarketEconomy runs on profit. The axiomatically correct macroeconomic #ProfitLaw / #BalancesEquation reads (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0. Because they are too stupid for elementary #Algebra, #MMTers get… pic.twitter.com/iAPD0NHv2C
— E.K-H (@AXECorg) April 27, 2024

Occasional Xs: Clueless economists / Science (LXXXIV)

#Economics #FailedFakeScience

“Mainstream economics is a disarray, by definition.”

Economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false…
— E.K-H (@AXECorg) April 27, 2024

Occasional Tweets: Economic laws (II)

#Economics #FailedFakeScience

“There are no 'economic laws'. Every honest thinker knows this. There are only decisions made by humans.”

This is the scientifically incompetent #Economist's methodological confusion in a nutshell.

To begin with, economics is NOT a #SocialScience… pic.twitter.com/egsJxYqubP
— E.K-H (@AXECorg) April 27, 2024

April 26, 2024

Occasional Xs: Clueless economists / Inflation (XXIII)

#Economics #FailedFakeScience #Inflation

Mr. Powell is not to blame for policy mistakes. Economics is.

The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally… pic.twitter.com/ZEv9wjEQQw
— E.K-H (@AXECorg) April 26, 2024

Occasional Xs: What economists really do (CCXXVIII)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

“How economists could make themselves more useful?”

Economics claims to be #Science but is NOT. The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism,…
— E.K-H (@AXECorg) April 26, 2024

Also at Soumaya Keynes

April 25, 2024

Occasional Xs: What economists really do (CCXXVII)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

“… I do not hold that Bastiat was a bad theorist. I hold that he was no theorist.” (Schumpeter)#Bastiat had NO idea of what #Profit is and how the economic #System works. He was just another #AgendaPusher /…
— E.K-H (@AXECorg) April 25, 2024

Occasional Xs: What economists really do (CCXXVI)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

“… I do not hold that Bastiat was a bad theorist. I hold that he was no theorist.” (Schumpeter)#Bastiat had NO idea of what #Profit is and how the economic #System works. He was just another #AgendaPusher /…
— E.K-H (@AXECorg) April 25, 2024

Occasional Xs: What economists really do (CCXXV)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The correct term for the German polity is NOT #Democracy but #Oligarchy with key institutions like #Parliament / #Treasury / #CentralBank / #BigBusiness as integral parts. This institutional setup thrives on…
— E.K-H (@AXECorg) April 25, 2024

Occasional Xs: Paradigm Shift (XXIX)

#Economics #FailedFakeScience #Reset

The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got #Profit wrong. When the foundational concepts… pic.twitter.com/aUIxIF8fIg
— E.K-H (@AXECorg) April 25, 2024

April 24, 2024

Occasional Xs: What economists really do (CCXXIV)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got #Profit wrong.… pic.twitter.com/cEBCF9Ukn0
— E.K-H (@AXECorg) April 24, 2024

Occasional Xs: What economists really do (CCXXIII)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The so-called #FreeMarketEconomy runs on #Profit. The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. So, #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy. Their…
— E.K-H (@AXECorg) April 24, 2024

Occasional Xs: How it works (CLXXXIX)

#LearnRealEconomics #Deficit #Profit #Debt #Interest

The #MarketEconomy runs on profit. The #ProfitLaw ⇓ implies #PublicDeficitIsPrivateProfit. So, #DeficitSpendingMoneyCreation is a #FreeLunch for the Oligarchy. Macroeconomic #Profit is in the main produced by the growth of… pic.twitter.com/C6B9S6mPkA
— E.K-H (@AXECorg) April 24, 2024

Occasional Xs: Paradigm Shift (XXVIII)

#Economics #FailedFakeScience #Keynes got macroeconomic #Profit wrong because he was too stupid for elementary #Algebra. So, he messed up the #ParadigmShift from #MicroFoundations to #MacroFoundations. Because of this initial blunder, the whole of (#Micro & #Macro) #Economics is… pic.twitter.com/tEGlQXlS4j
— E.K-H (@AXECorg) April 24, 2024

Occasional Xs: The futile attempt to recycle MMT (XCIV)

#MMT #BadScienceBadPolicyBadPeople

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit, so the MMT policy of #DeficitSpendingMoneyCreation is a #FreeLunch for the Oligarchy. It holds #PublicDeficitIsPrivateProfit.

Accordingly,…
— E.K-H (@AXECorg) April 24, 2024

Occasional Xs: How it works (CLXXXVIII)

#Economics #FreeMarkets

The U.S. polity is an Oligarchy with #Congress / #Treasury / #Fed / #BigBusiness as integral parts. The axiomatically correct #ProfitLaw ⇓ implies #PublicDeficitIsPrivateProfit. Macroeconomic #Profit is in the main produced by… pic.twitter.com/2xKuPMmgUZ
— E.K-H (@AXECorg) April 24, 2024

April 23, 2024

Occasional Xs: How it works (CLXXXVII)

#LearnRealEcon

From the axiomatically correct elementary macroeconomic #Laws follows that #Price P, monetary #Profit Qm, and #Employment L all increase as a result of #DeficitSpendingMoneyCreation i.e. ρE>1. The #Economy thrives on growing #PublicDebt. Without the massive help… pic.twitter.com/8fzLJSjctL
— E.K-H (@AXECorg) April 23, 2024

Occasional Xs: The history of economic thought is the history of scientific failure (XXIII)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory and…
— E.K-H (@AXECorg) April 23, 2024

Occasional Xs: Clueless economists / Philosophy (III)

#Economics #War #Philosophy

What #Kant had to say to #WarMongers and proponents of #DeficitSpendingMoneyCreation: “National debts shall not be contracted with a view to the external friction of states.” Olaf Scholz and the #WerteWesten have long since lost Kant.
— E.K-H (@AXECorg) April 23, 2024

Occasional Xs: What economists really do (CCXXII)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The history of economic thought is the history of scientific failure. #Hayek, for example, NEVER understood what #Profit is and how the economic #System works. When the foundational concepts of the subject matter…
— E.K-H (@AXECorg) April 23, 2024

April 22, 2024

Occasional Xs: What economists really do (CCXXI)

#Economics #War #EconomicWarfare

What #Kant had to say to #WarMongers and proponents of #DeficitSpendingMoneyCreation: “National debts shall not be contracted with a view to the external friction of states.” Clearly, Kant has been a #SchuldenBremser. Neither Olaf Scholz, Gustav…
— E.K-H (@AXECorg) April 22, 2024

Occasional Xs: Clueless economists / Science (LXXXIII)

#Economics #FailedFakeScience

The founding fathers did not understand what profit is, i.e. they got the foundational concept of the subject matter wrong. But their successors have neither noticed nor fixed the lethal blunder.#Walrasianism, #Keynesianism, #Marxianism,…
— E.K-H (@AXECorg) April 22, 2024

April 21, 2024

Occasional Xs: Clueless economists / Science (LXXXII)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got #Profit wrong.… pic.twitter.com/qCqw8i2d4C
— E.K-H (@AXECorg) April 21, 2024

Occasional Xs: The futile attempt to recycle MMT (XCIII)

#MMT #BadScienceBadPolicyBadPeople #SectoralBalances

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit, so the MMT policy of #DeficitSpendingMoneyCreation is a #FreeLunch for the Oligarchy. It holds #PublicDeficitIsPrivateProfit.

Accordingly,… pic.twitter.com/dFvW75BtKg
— E.K-H (@AXECorg) April 21, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXIX)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth #Austrianism

von Mises: “In the imaginary construction of a stationary economy the total sum of all entrepreneurs’ profit equals the total sum of all entrepreneurs’ losses.”

This is provably false. Obviously, von…
— E.K-H (@AXECorg) April 21, 2024

Occasional Xs: Economists’ eternal problem with methodology (VI)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

Everyone has a #Model in their head. But #Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives are mutually contradictory and axiomatically false and materially/formally inconsistent and… pic.twitter.com/ZDcuKPQUWR
— E.K-H (@AXECorg) April 21, 2024

Occasional Xs: The futile attempt to recycle MMT (XCII)

#MMT #BadScienceBadPolicyBadPeople #MacroFoundations #SectoralBalances

The so-called #FreeMarketEconomy runs on profit. The axiomatically correct macroeconomic #ProfitLaw / #BalancesEquation reads (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0.

Because they are too stupid for elementary…
— E.K-H (@AXECorg) April 21, 2024

April 20, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXVIII)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got #Profit wrong. When…
— E.K-H (@AXECorg) April 20, 2024

Occasional Xs: Clueless economists / Science (LXXXI)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

“Most mainstream economists view #MMT as a crackpot theory, …” As a matter of fact, both mainstream econ and MMT are proto-scientific garbage.

The major approaches (#Walrasianism, #Keynesianism, #Marxianism,…
— E.K-H (@AXECorg) April 20, 2024

April 19, 2024

Occasional Xs: What economists really do (CCXX)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. So, the 1%ers a.k.a. Oligarchy and their loudspeakers in #Parliament / #Academia / #Media should always argue for…
— E.K-H (@AXECorg) April 19, 2024

Occasional Xs: The futile attempt to recycle Adam Smith (LXIV)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

Since the founding fathers, #Economists have claimed to be doing science but they did NOT. What they really did was to disguise political #AgendaPushing as #Science or #EnlightenedPhilosophy.

Adam Smith NEVER… pic.twitter.com/bFOVLwY5Y6
— E.K-H (@AXECorg) April 19, 2024

Occasional Xs: How it works (CLXXXVI)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The correct term for the German polity is NOT #Democracy but #Oligarchy with key institutions like #Parliament / #Treasury / #CentralBank / #BigBusiness as integral parts. This institutional setup thrives on… pic.twitter.com/MhlWmogExG
— E.K-H (@AXECorg) April 19, 2024

Occasional Xs: What economists really do (CCXIX)

#Economics #FailedFakeScience #CalculationProblem

von Mises: “In the imaginary construction of a stationary economy the total sum of all entrepreneurs’ profit equals the total sum of all entrepreneurs’ losses.”

This is provably false. The axiomatically correct macroeconomic… pic.twitter.com/eQr8jn4BtQ
— E.K-H (@AXECorg) April 19, 2024

April 18, 2024

Occasional Xs: The futile attempt to recycle Ricardo (VII)

#Economics #FailedFakeScience #Profit

The history of economic thought is the history of scientific failure and it goes from #DavidRicardo onward to the clueless Jorge Morales Meoqui.

Ricardo NEVER understood what #Profit is and how the economic #System works. When the…
— E.K-H (@AXECorg) April 18, 2024

Occasional Xs: The futile attempt to recycle Keynesianism (LIV)

#Economics #FailedFakeScience #Keynes got macroeconomic #Profit wrong because he was too stupid for elementary #Algebra. So, he messed up the #ParadigmShift from #MicroFoundations to #MacroFoundations. Because of this initial blunder, the whole of (#Micro & #Macro) #Economics is… pic.twitter.com/zeeZD4POBy
— E.K-H (@AXECorg) April 18, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXVII)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

The history of economic thought is the history of scientific failure. #Hayek, for example, NEVER understood what #Profit is and how the economic #System works. When the foundational concepts of the subject matter…
— E.K-H (@AXECorg) April 18, 2024

April 17, 2024

Occasional Xs: What economists really do (CCXVIII)

#Economics #FailedFakeScience #Austrianism

von Mises: “In the imaginary construction of a stationary economy the total sum of all entrepreneurs’ profit equals the total sum of all entrepreneurs’ losses.”

This is provably false. The axiomatically correct macroeconomic #ProfitLaw… pic.twitter.com/6GhXkB9mU9
— E.K-H (@AXECorg) April 17, 2024

Occasional Xs: How it works (CLXXXV)

#Economics #MacroFoundations #SectoralBalances

The so-called #FreeMarketEconomy runs on #Profit. The axiomatically correct macroeconomic #ProfitLaw / #BalancesEquation (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0 implies Public Deficit G−T>0 = Private Profit Qm.

From this follows the… pic.twitter.com/372lQ98Mwa
— E.K-H (@AXECorg) April 17, 2024

For more about sectoral balances see AXECquery.

Related 'Keynes’s Missing Axioms'

Occasional Xs: How it works (CLXXXIV)

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

Since 2018, the Trump and Biden administrations have lifted the #DebtCeiling several times. ⇓ Did this help to significantly improve public infrastructure, alleviate poverty, or improve the future of American… pic.twitter.com/ZozIDDLM6Y
— E.K-H (@AXECorg) April 17, 2024

Occasional Xs: How it works (CLXXXIII)

#Econ #FailedFakeScience

“Der Staat ist kein Privathaushalt.”/”The state is not a private household”

So true. The #State is one of the sectors of the economic #System (household, business, state, rest of the world).

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies…
— E.K-H (@AXECorg) April 17, 2024

Occasional Xs: How it works (CLXXXII)

#Econ

The axiomatically correct 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. So, the policy of #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy. Growing public debt is the life elixir of the so-called #FreeMarketEconomy.

The…
— E.K-H (@AXECorg) April 17, 2024

April 16, 2024

Occasional Xs: What economists really do (CCXVII)

#Economics #War #EconomicWarfare

The ruin of the GER #Economy and the #Impoverishment of #WeThePeople is the direct consequence of Ampel's foreign/domestic #ZeitenWende policy. #WarEconomy always means #SocialDeprivation / excessive #DeficitSpendingMoneyCreation / exploding…
— E.K-H (@AXECorg) April 16, 2024

Occasional Xs: Clueless economists / Science (LXXX)

#Economics #FailedFakeScience

The task of the #Economist is to figure out how the #Economy works. His task is NOT to side with the rich or the poor or anybody else.

Since the founding fathers, #Economists have claimed to be doing science but they did NOT. What they really did… pic.twitter.com/o6GsWNHkwk
— E.K-H (@AXECorg) April 16, 2024

Occasional Xs: What economists really do (CCXVI)

#Economics #FailedFakeScience #Austrianism

von Mises: “In the imaginary construction of a stationary economy the total sum of all entrepreneurs’ profit equals the total sum of all entrepreneurs’ losses.”

This is provably false. The axiomatically correct macroeconomic #ProfitLaw… pic.twitter.com/T2o8m7Cqr7
— E.K-H (@AXECorg) April 16, 2024

For more about von Mises see AXECquery.

April 15, 2024

Occasional Xs: What economists really do (CCXV)

#LearnRealEcon

Since 2018, the Trump and Biden administrations have lifted the #DebtCeiling several times. Did this help to significantly improve public infrastructure, alleviate poverty, or improve the future of American children?

No.

But because of the 3-sector #ProfitLaw… pic.twitter.com/tdwvENngDK
— E.K-H (@AXECorg) April 15, 2024

Occasional Xs: The futile attempt to recycle Adam Smith (LXIII)

#Economics #FailedFakeScience

“Economics is the study of the economy, not the study of economists.” (Ricardo Reis)

Since the founding fathers, #Economists have claimed to be doing science but they did NOT. What they really did was to disguise political #AgendaPushing as…
— E.K-H (@AXECorg) April 15, 2024

Occasional Xs: The futile attempt to recycle MMT (XCI)

#MMT #BadScienceBadPolicyBadPeople

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit i.e. the MMT policy of #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy.

Accordingly, private financial wealth grows with #PublicDebt. The…
— E.K-H (@AXECorg) April 15, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXVI)

#Economics #FailedFakeScience #Austrianism

“Witnessing excellence in arts and music; athletics and sports; science and engineering is a wonderful experience.”

Instead of witnessing the excellence of athletes, #Austrians could start producing some scientific excellence…
— E.K-H (@AXECorg) April 15, 2024

Occasional Xs: The futile attempt to recycle MMT (XC)

#MMT #BadScienceBadPolicyBadPeople

“FINDING THE MONEY will flip your understanding of the national debt — and the nature of money — upside down.”

Only if you had many drinks at the Greenwich Village’s Bar Veloce gathering.

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies…
— E.K-H (@AXECorg) April 15, 2024

Occasional Xs: The futile attempt to recycle Austrianism (XXV)

#Economics #FailedFakeScience #Austrianism

“… Austrian economics is a scientific research program …”

Sorry, you can’t be serious!

For 200+ years, economics claims to be #Science but is NOT. The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and their…
— E.K-H (@AXECorg) April 15, 2024

April 13, 2024

Occasional Xs: The futile attempt to recycle Keynesianism (LIII)

#Economics #FailedFakeScience #Keynesianism #Keynes got macroeconomic #Profit wrong bc he was too stupid for elementary #Algebra. So, he messed up the #ParadigmShift from #MicroFoundations to #MacroFoundations. Bc of this initial blunder, the whole of (#Micro & #Macro)… pic.twitter.com/dJ3bvGFVtP
— E.K-H (@AXECorg) April 13, 2024

Occasional Xs: Paradigm Shift (XXVII)

#Econ #FailedFakeScience

The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got #Profit wrong. When the foundational concepts of the subject… pic.twitter.com/hQkeegq7Mu
— E.K-H (@AXECorg) April 13, 2024

April 12, 2024

Occasional Xs: How economists serve the rich (V)

#LearnRealEcon

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. So, the 1%ers a.k.a. Oligarchy and their loudspeakers in #Parliament/#Academia/#Media should always argue for #DeficitSpendingMoneyCreation = #GrowingPublicDebt.#PublicDebt…
— E.K-H (@AXECorg) April 12, 2024

April 11, 2024

Occasional Xs: What economists really do (CCXIV)

#Econ #FailedFakeScience

For 200+ years, economics claims to be #Science but is NOT. The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got…
— E.K-H (@AXECorg) April 11, 2024

April 9, 2024

Occasional Xs: Paradigm Shift (XXVI)

#Econ #FailedFakeScience #Economics claims to be #Science but is NOT. The major approaches are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL got #Profit wrong. When the foundational concepts of the subject matter are inconsistent, the… pic.twitter.com/YloUuS4fI3
— E.K-H (@AXECorg) April 9, 2024

Occasional Xs: What economists really do (CCXIII)

#Econ #FailedFakeScience

You don't need another Boettke post to realize that academic #Economics has finally degenerated into a #DisInfoTainment shit show.
— E.K-H (@AXECorg) April 9, 2024

April 8, 2024

Occasional Xs: Clueless economists / Science (LXXIX)

#Economics #FailedFakeScience

“Unlike other sciences, such as physics and even ecology, we prefer to do trivial mathematics and not concern ourselves with realism.”

The verbal swindling in this sentence consists of the implicit assertion that economics is just another science.… pic.twitter.com/7CfkCxKf9z
— E.K-H (@AXECorg) April 8, 2024

Occasional Xs: Clueless economists / Inflation (XXII)

#LearnRealEcon

The axiomatically correct elementary macroeconomic #LawOfSupplyAndDemand ⇓ tells one how the avg #Price P moves as a function of avg #WageRate W, #Productivity R, #DeficitSpendingMoneyCreation ρE>1 & supply chain issues ρX<1. pic.twitter.com/UDmXSqnA44
— E.K-H (@AXECorg) April 8, 2024

April 6, 2024

Profit and the decline of workers’ nominal share (III)

#LearnRealEcon

The macroeconomic #ProfitLaw ⇓ implies #PublicDeficitIsPrivateProfit. So, #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy i.e. exploding #PublicDebt is the ultimate cause of a rising #ProfitShare/falling #WageShare. ⇒

Profit and the decline of… pic.twitter.com/K7GqE2FxQN
— E.K-H (@AXECorg) April 6, 2024

Occasional Xs: The futile attempt to recycle Adam Smith (LXII)

#Economics #FailedFakeScience #NoFalseHeroMemorials

Since the founding fathers, #Economists have claimed to be doing science but they did NOT. What they really did was to disguise political #AgendaPushing as #Science or #EnlightenedPhilosophy.

Adam Smith NEVER understood what… pic.twitter.com/vsjTf8U9O6
— E.K-H (@AXECorg) April 6, 2024

April 5, 2024

Occasional Xs: The futile attempt to recycle MMT (LXXXIX)

#MMT #BadScienceBadPolicyBadPeople

“More accurately, govt purchases things it needs and in so doing, the numbers are typed into the recipient's bank account, thus 'new money' enters the economy.”

Very narrowly missed!

That #Money is created #OutOfNothing is NOT the point. The… pic.twitter.com/0xh42Vumgx
— E.K-H (@AXECorg) April 5, 2024

Occasional Xs: Clueless economists / Profit (XXXIV)

#Economics #FailedFakeScience #Keynes got macroeconomic #Profit wrong because he was too stupid for elementary #Algebra. Consequently, he got the relationship between #Investment I, #Saving Sm, and #Profit Qm wrong. Thus, he landed at the “ex-post accounting identity” I=S, which… pic.twitter.com/YHyU29be9V
— E.K-H (@AXECorg) April 5, 2024

Occasional Xs: Clueless economists / Inflation (XXI)

The axiomatically correct macroeconomic #LawOfSupplyAndDemand ⇓ tells one how the avg #Price P moves under the condition of #MarketClearing as a function of avg #WageRate W, #Productivity R, and #DeficitSpendingMoneyCreation i.e. the expenditure ratio ρE. The representative… pic.twitter.com/nB9nghXF49
— E.K-H (@AXECorg) April 5, 2024

Occasional Xs: The futile attempt to recycle behavioral economics (V)

#Econ #FailedFakeScience #PsySoc #Economics is about how the economy works. It is a #SystemsScience and NOT a #SocialScience i.e. NOT about Human Nature / Motives / Behavior / Preferences / Choice / Incentives / Expectations etc. #PsychoSocialEcon has always been… pic.twitter.com/VZA74kAiys
— E.K-H (@AXECorg) April 5, 2024

Occasional Xs: Paradigm Shift (XXV)

#Econ #FailedFakeScience #PsySoc #Economics is about how the economy works. It is a #SystemsScience and NOT a #SocialScience i.e. NOT about Human Nature / Motives / Behavior / Preferences / Choice / Incentives / Expectations etc. #PsychoSocialEcon has always been… pic.twitter.com/U0fY4cL4kN
— E.K-H (@AXECorg) April 5, 2024

Occasional Xs: How MMTers serve the Oligarchy (III)

#MMT #BadScienceBadPolicyBadPeople

“Only one flaw, @jeremycorbyn. You can't save the NHS by taxing the rich. You save the NHS by the gov't using the power of our sovereign fiat currency to create the money needed, on an ongoing basis.”

Now it's MMT's Matty Erskine who stalks…
— E.K-H (@AXECorg) April 5, 2024

April 4, 2024

Occasional Xs: Clueless economists / Breakdown (III)

#HowMoneyWorks

The axiomatically correct 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. So, the policy of #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy. Growing public debt is the life elixir of the so-called #FreeMarketEconomy.…
— E.K-H (@AXECorg) April 4, 2024

Occasional Xs: How it works (CLXXXI)

#LearnRealEcon

The axiomatically correct 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. So, the policy of #DeficitSpendingMoneyCreation is a #FreeLunch for the #Oligarchy. Growing public debt is the life elixir of the so-called #FreeMarketEconomy.…
— E.K-H (@AXECorg) April 4, 2024

April 3, 2024

Occasional Xs: What economists really do (CCXII)

#Economics #FailedFakeScience

For 200+ years, economics claims to be #Science but is NOT. The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent & ALL…
— E.K-H (@AXECorg) April 3, 2024

Occasional Xs: Economists’ eternal problem with methodology (V)

#Economics #FailedFakeScience

“… because my view is that it is the unique methodology and analytics of the Austrian School that yields the powerful insights.”

For 200+ years, economics claims to be #Science but is NOT. The major approaches (Walrasianism, Keynesianism,…
— E.K-H (@AXECorg) April 3, 2024

April 2, 2024

Occasional Xs: The futile attempt to recycle MMT (LXXXVIII)

#MMT

“Guess what happened? MMT bros join and start fighting with each other about what MMT *really is*.”

MMT is really #BadScienceBadPolicyBadPeople.

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit, so the MMT policy of… pic.twitter.com/21pGSgZB5P
— E.K-H (@AXECorg) April 2, 2024

Occasional Xs: The futile attempt to recycle MMT (LXXXVII)

#MMT #BadScienceBadPolicyBadPeople

MMT's foundational #BalancesEquation is provably false, so the whole approach is scientifically worthless.

The page where Stephanie Kelton gets macroeconomics wrong https://t.co/CNFDkXM1Ki

The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies… pic.twitter.com/3tjuy8DmYV
— E.K-H (@AXECorg) April 2, 2024

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Knowledge only — no opinion

Science does not explain everything, but non-science explains nothing.

Neither orthodox nor heterodox economics satisfies the scientific criteria of material and formal consistency.

Economists cannot explain how the economy works. The Profit Theory is false since Adam Smith. There is much opinion and little knowledge.

Opinion is the realm of political economics, knowledge is the realm of theoretical economics.

Political economics is scientifically worthless.

Theoretical economics is built upon clearly stated premises, i.e., upon a set of axioms.

Orthodoxy got the axiomatic foundations wrong and Heterodoxy has none at all.

Economics is a failed science. Economists are incompetent scientists.

Profit

Neither Classicals, nor Walrasians, nor Marshallians, nor Marxians, nor Keynesians, nor Institutionialists, nor Monetary Economists, nor MMTers, nor Austrians, nor Sraffaians, nor Evolutionists, nor Game theorists, nor EconoPhysicists, nor RBCers, nor New Keynesians, nor New Classicals ever came to grips with profit. Hence, they all fail to capture the essence of the market economy.

Because of this, economists have nothing to offer in the way of a scientifically founded economic policy guidance.

The hybrid science

As a first approximation, one can agree on the general characteristic that the economy is a complex system.

However, with the term system one usually associates a structure with components that are non-human. In order to stress the obvious fact that humans are an essential component of the economic system the market economy should be characterized more precisely as a complex hybrid human/system entity.

The scientific method is straightforwardly applicable to the sys-component but not to the hum-component. While it is clear that the economy always has to be treated as an indivisible whole, for good methodological reasons the analysis has to start with the objective system-component.

In gestalt-psychological terms the economic system is the foreground, individual behavior the background. Common sense wrongly insists that the hum-component must always be in the foreground. This fallacy compares to geo-centrism. The economic system has its own logic which is different from the behavioral logic of humans. The systemic logic is what Adam Smith called the Invisible Hand.

There are systemic laws but no behavioral laws. Systemic laws have the same methodological status as physical laws.

Neither Orthodoxy nor Heterodoxy can tell what the systemic laws of the actual monetary economy are.

Whether the outcome of the human/system-interaction is good or bad is a politcal question that lies outside of theoretical economics. Theoretical economics explains how the actual economy works - no less, no more.

Narrative vs.Theory

Psychological, sociological or behavioral assumptionism cannot yield anything other than a gossip model of the world. Second-guessing the agents is not economic analysis.

Science deals exclusively with propositions that can in principle be decided by objective means. The rest is opinion, faith, phantasy, motive speculation, allegation, hallucination, myth, paranoia, ink-blot association, psychology, philosophy, in one word: storytelling.

Storytelling is the original mode of communication in the social realm — except science.

Political economics is storytelling and, by default, the natural habitat of confused confusers. Walrasianism, Keynesianism, Marxianism, Austrianism are social narratives and not scientifically valid representations of reality.

"The truth is, most persons, not excepting professional economists, are satisfied with very hazy notions." (Fisher)

In marked contrast, theoretical economics lives up to the standards of material and formal consistency. A scientific theory is the best mental representation of reality that is humanly possible.

Theory starts with a set of objective and consistent axioms.

Paradigm Shift

"The problem is not just to say that something might be wrong, but to replace it by something — and that is not so easy." (Feynman)

"As will become evident, there is more agreement on the defects of orthodox theory than there is on what theory is to replace it: but all agreed that the point of the criticism is to clear the ground for construction." (Nell)

"The moral of the story is simply this: it takes a new theory, and not just the destructive exposure of assumptions or the collection of new facts, to beat an old theory." (Blaug)

"Is it not a fact, which stares at us from the histories of all sciences, that it is much more difficult for the human mind to forge the most elementary conceptual schemes than it is to elaborate the most complicated superstructure when those elements are well in hand?" (Schumpeter)

"The task of producing knowledge against the grain requires imagination." (Mirowski)

"A new idea is extremely difficult to think of. It takes a fantastic imagination." (Feynman)

"The scientific imagination dreams of explanations and laws." (Peirce)

"It is brilliance of imagination which makes the glory of science." (Evans)

"... we know little more now about ‘how the economy works,’ ... than we knew in 1790, after Adam Smith completed the last revision of The Wealth of Nations." (Clower)

Selftest and to watch for

You apply one of these items

• supply-demand-equilibrium,

• general equilibrium,

• marginal utility,

• well-behaved production functions,

• total income = value of output,

• total income = wages + profits,

• I=S,

• wage rate down - employment up,

• behavioral axioms?

Then you are out of science because of unnoticed material or formal inconsistency.

Every economist who uses the concept of equilibrium is scientifically incompetent because she/he failed to notice that equilibrium is an economic nonentity.

Practically this means: as soon as the word equilibrium appears in an economic text it can be thrown into the waste basket. The same holds for all other nonentities.

The vast majority of economists deals mainly with nonentities. This is why Walrasianism, Keynesianism, Marxianism, Austrianism is scientifically worthless.

Since Adam Smith, economic policy guidance has no sound scientific foundations.

To be replaced (1)

The core premises of Orthodoxy are uncertain and false and this fully explains the failure of the research program.

“As with any Lakatosian research program, the neo-Walrasian program is characterized by its hard core, heuristics, and protective belts. Without asserting that the following characterization is definitive, I have argued that the program is organized around the following propositions: HC1 economic agents have preferences over outcomes; HC2 agents individually optimize subject to constraints; HC3 agent choice is manifest in interrelated markets; HC4 agents have full relevant knowledge; HC5 observable outcomes are coordinated, and must be discussed with reference to equilibrium states.” (Weintraub)

The inescapable Paradigm Shift consists of the move from this obsolete hard core to the superior set of structural axioms.

To be replaced (2)

The fundamental equations of macroeconomics have been formulated by Keynes in two lines.

"Income = value of output = consumption + investment. Saving = income - consumption. Therefore saving = investment."

This elementary syllogism is demonstrably false. The demonstration consists in the proof that Keynes could not solve the Profit Puzzle. Neither did Post-Neo-New-Keynesians.

In the most general terms, the economics Paradigm Shift consists in switching from the behavior-centric bottom-up approach to the structure-centric top-down approach. This is comparable to the Copernican turn from geo-centrism to helio-centrism.

Consensus

Economics is a science without scientists. Because they are ignorant of the elementary difference between profit and income, the present generation of economists has not made and cannot make a significant contribution to the discussion about how the actual economy works.

Every orthodox or heterodox economist can convince himself/herself that their profit theory is defective.

Every non-economist can — by applying elementary logic — convince himself that conventional profit theories are false. See 'How the intelligent non-economist can refute every economist hands down'.

Because the profit theory is false the whole of conventional economic theory has to be rejected.

"What is now taught as standard economic theory will eventually disappear, no trace of it will remain in the universities or boardrooms because it simply doesn’t work: were it engineering, the bridge would collapse." (McCauley)

No scientist will ever accept Walrasianism, Keynesianism, Marxianism, or Austrianism. These approaches are logically and/or empirically refuted. This is the actual methodological state-of-art. Walrasians, Keynesians, Marxians, or Austrians are still at the proto-scientific stage. These approaches cannot be improved, only abandoned.

Economists are a public nuisance because they have an opinion on everything but knowledge of nothing.

About me

“Bottom line is that your profit law is just a definition you made up nobody else agrees with, nobody. You are all alone with your precious tautology.” Barkley Rosser

“In any event, your entire theory is based on you doing macro accounting in wacky fashion that nobody agrees with.” Brian Romanchuk

"Your stuff is at least original: it's quite cool after a couple of decades at this to see a fresh Economics. But real promises are not advanced: they were around for millennia until the Greeks obscured them with Metaphysics." Chris Cook

"No mate, they're you-blockers. You have all the personality traits of a crank, and the rest of them have tired of you. You could be 100% right, and you'd still die as your only follower." Steve Keen

"What you are doing fills is all with joy, your constructive critique is most welcome!"

Achim Truger,

German Council of Economic Experts,

in a failed attempt to be ironic

"200+ years of thought and yet you are the only one who gets it—or even understands your argument. Thank god we have you, pseudonymous Twitter user. Otherwise no one would know."

William Luther

Assistant Professor of Economics

in a failed attempt to be funny

"Egmonts profit law is the perfect equation that demonstrates this in action. Put the equation into a spreadsheet and then add government spending and watch how it flows into profits. Enter in some debt (-Sm) and watch too how that flows into profits. It can't go anywhere else."

Dean

About the rest of economics

Walrasianism, Keynesianism, Marxianism, Austrianism, MMT, Pluralism are mutually contradictory, axiomatically false, materially/ formally inconsistent. Economics is a failed science.

“There are three classes of people: those who see. Those who see when they are shown. Those who do not see.” Leonardo da Vinci

In economics, the overwhelming majority belongs to Class III. This explains why economics is after 200+ years still at the proto-scientific level.

The obvious task for every economist is to advance from cargo cult science and political agenda-pushing to science. This is absolutely beyond the means of Class III people.

For 200+ years now, economists are not scientists but agenda pushers, useful idiots, clowns in the political Circus Maximus.

Nopopop

This blog does not add to any popular/un- popular opinion.

This blog does not hand out advice about how to avoid taxes, to get rich on the stock market, to be successful in business, to increase the wealth of nations, to run an economy, to maximize welfare, to prevent national/global bankruptcy, to improve the institutional setup of society, to get out of national/global depression, nor about how to save humankind or any subgroup thereof.

This blog is about the true theory of the actual monetary economy.

"In order to tell the politicians and practitioners something about causes and best means, the economist needs the true theory or else he has not much more to offer than educated common sense or his personal opinion." (Stigum)

Focus

Science is of primary interest and importance. Scientists are of secondary interest.

With regard to science, most people lose focus easily because of a natural preference for anecdotes and gossip over facts or subjectivity over objectivity.

Hence, Schumpeter once considered it necessary to remind his habitually disoriented fellow economists: “Remember: occasionally, it may be an interesting question to ask why a man says what he says; but whatever the answer, it does not tell us anything about whether what he says is true or false.”

Science is about true/false and nothing else.

Disclaimer

Missing Blog-Reference links: AXEC does not guarantee that their comments can at any time be recovered from where they have been posted intitially because the availability depends on the publication policy of the blog owner which is implicitly accepted on entering a debate. See also: 'Economists: Incompetent? Stupid? Corrupt?'

Texts: Parts of arbitrary length of any of the author's texts is and will be used again by the author in papers, books, websites, blogs, and other media without explicit reference. The right to make corrections or minor textual improvements on reutilization is reserved. Therefore, it is always a good idea to double-check for the latest version.

Caution: Do not expect a corroboration of your political view. Neither a refutation. Political economics has been scientifically worthless since Adam Smith. Politics has to be separated from economics because it is categorically different from science. The best science can do and has always done is to prove beyond reasonable doubt that you have been objectively wrong or ignorant until now. Science goes beyond the naive common sense of today and becomes the sophisticated common sense of tomorrow.

See also Terms of Use and Legal at www.AXEC.org

Outlook

To recall, while political economics is storytelling, theoretical economics adheres to scientific standards.

The first task of theoretical economics is to get the axiomatic foundations right. This is what J. S. Mill called the opus magnum. Neither Orthodoxy nor Heterodoxy came up with a reasonable solution to this day. This explains the secular stagnation of economics.

There is no serious alternative to structural axiomatic economics. This is not a matter of opinion but of proof. The sole criteria are material and formal consistency.

All of economics has to be reconstructed from the ground up.

Major economic policy implication

The price mechanism does not work as standard economics hypothesizes. The axiom-based Employment Law states that overall employment increases if the average wage rate increases relative to average price and productivity. This gives one the lever to improve the employment situation all over the world and to fend off deflation without rising debt and without artificial capacity growth. To increase the average price relative to the average wage rate and productivity increases unemployment.

Right policy depends on true theory.

“In order to tell the politicians and practitioners something about causes and best means, the economist needs the true theory or else he has not much more to offer than educated common sense or his personal opinion.” (Stigum)

Lacking the true theory, economists promote for more than 200 years opinion instead of knowledge.