AXEC: New Foundations of Economics: September 2024

September 16, 2024

Occasional Tweets: There is no such thing as economic sciences (III)

#Economics #FailedFakeScience

Because economics has never satisfied the definition of #Science, #Prizes have no scientific significance. They are a #Marketing / #PR / #Propaganda tool to shape #PublicOpinion and an #Incentive / #Reward with which the #Oligarchy controls… pic.twitter.com/jXvW3jVm5G
— E.K-H (@AXECorg) September 16, 2024

Occasional Xs: Clueless economists / Profit (XLVI)

#Economics #Profit #Wealth

“Wealth comes from successful individual efforts to please one’s fellow man …”

This is an optical illusion generated by the microeconomic perspective.

The #FreeMarketEconomy runs on profit. Macroeconomic profit is given by the axiomatically correct… pic.twitter.com/qIEtvotPMF
— E.K-H (@AXECorg) September 16, 2024

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

#Economics #FailefFakeScience

The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally… pic.twitter.com/JlktdPGFIq
— E.K-H (@AXECorg) September 16, 2024

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

#Economics #FailedFakeScience #Keynes got macroeconomic #Profit wrong because he was too stupid for elementary #Algebra. Same with #Kalecki. #MacroEconomics is scientifically worthless to this day. All one needs to know about Kalecki in particular is to be found here ⇒…
— E.K-H (@AXECorg) September 16, 2024

Occasional Xs: What economists really do (CCCXXXVIII)

#Economics #Germany

The ruin of the German #Economy and the impoverishment of #WeThePeople is the direct consequence of the #Ampel's foreign/domestic #ZeitenWende policy which must be seen in the broader context of #GeoPolitics / #GeoEconomics. This, however, goes probably…
— E.K-H (@AXECorg) September 16, 2024

Occasional Xs: The futile attempt to recycle Milton Friedman (XXVI)

#Economics #FailedFakeScience

“Well, there are fewer limits on what you can promise than on what you can deliver.” (Milton Friedman)

What a profound thinker! Those platitudes are what #Economists deliver after 200+ years of small-brain thinking about how the #Economy works.…
— E.K-H (@AXECorg) September 16, 2024

September 15, 2024

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

#Economics #FailedFakeScience

Ludwig von Mises was the inventor and busy propagator of the quasi-religious tenet: All that is good in the universe is the outcome of the capitalist/free market economy, and all that is evil is the outcome of governmental interventionist policy.… pic.twitter.com/JxPCEJjSgl
— E.K-H (@AXECorg) September 15, 2024

Occasional Xs: The futile attempt to recycle Marx (XXXII)

#Economics #FailefFakeScience

The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally…
— E.K-H (@AXECorg) September 15, 2024

Related 'Proﬁt for Marxists'

Occasional Xs: How it works (CCXLXI)

#HowItWorks

“No, the U.S. Dollar is not a Ponzi scheme. It serves as a proxy for the U.S. economy.”

The U.S. economy runs on profit. Macroeconomic profit is given by the axiomatically correct #ProfitLaw / #BalancesEquation (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0 (which consists of…
— E.K-H (@AXECorg) September 15, 2024

September 14, 2024

Occasional Xs: The futile attempt to recycle Marx (XXXI)

#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 & axiomatically…
— E.K-H (@AXECorg) September 14, 2024

Occasional Xs: Forget supply-demand-equilibrium (XIII)

#Economics #FailedFakeScience

The basic building block of economics is NOT the Supply-Demand-Equilibrium Cross because this silly construct is derived from invalid #MicroFoundations.

Bang — the representative economist and supply-demand-equilibrium are dead…
— E.K-H (@AXECorg) September 14, 2024

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

#Economics #MMT

“A welcome change from the usual theoretical twaddle that emanates from most mainstream economists & polllies.”

No, MMT is agenda-pushing just like mainstream economics.

The #FreeMarketEconomy runs on #Profit. Macroeconomic profit is given by the axiomatically… pic.twitter.com/gUD0Xi5hw0
— E.K-H (@AXECorg) September 14, 2024

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

#Economics #FailedFakeScience

Economics is about how the #Economy works. It is a #SystemsScience and NOT a #SocialScience. #Economists have been messing this up since Adam Smith.

The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their… pic.twitter.com/trMkVLF1CI
— E.K-H (@AXECorg) September 14, 2024

#Economics #FailedFakeScience

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

In order to understand the significance of the mass-energy equivalence relation E=mc^{2} one does not need to know where Einstein and the other protagonists were…
— E.K-H (@AXECorg) September 15, 2024

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

#FailedFakeScience #MMT

“The economic and monetary lies that create a veil of deceit and corruption are explained .”

Let's start.

MMT's foundational #BalancesEquation is provably false, so their whole #Macroeconomics is scientifically worthless. ⇒

The page where Stephanie… pic.twitter.com/OF6FSHh0P9
— E.K-H (@AXECorg) September 14, 2024

Occasional Xs: How it works (CCXLX)

#HowItWorks

“Few issues in politics and economics are nowadays more discussed — and less understood — than public debt.” (Lars Syll)

The #FreeMarketEconomy runs on profit. Macroeconomic profit is given by the axiomatically correct #ProfitLaw / #BalancesEquation…
— E.K-H (@AXECorg) September 14, 2024

September 13, 2024

Occasional Xs: Clueless economists / Breakdown (V)

#Economics #PublicDebt #Interest

Dear Charlie, the economy is going to hit the wall which has been obvious for a long time for everybody with more than two brain cells ⇒

From the debt economy to the gift economy: how America is brainwashed to love budget deficits…
— E.K-H (@AXECorg) September 13, 2024

Occasional Xs: Clueless economists / Employment (XI)

#Economics #Employment #MacroFoundations

“Incentives for US firms to produce more have to come from an increase in price, making it more profitable to do so.”

That's silly ceteris-paribus micro. For the #Economy as a whole things are different.

The axiomatically correct… pic.twitter.com/uRnMdGTkyR
— E.K-H (@AXECorg) September 13, 2024

Occasional Xs: How it works (CCXLIX)

#Economics #PublicDebt #Interest

Dear folks, you are going to hit the wall which has been obvious for a long time for everybody with more than two brain cells ⇒

From the debt economy to the gift economy: how America is brainwashed to love budget deficits…
— E.K-H (@AXECorg) September 13, 2024

Occasional Xs: The foul spirit of political economics (LXXXVI)

#Economics #FailedFakeScience #Keynesianism

For 200+ years, economics has claimed to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false &… pic.twitter.com/oXh1wAFlA1
— E.K-H (@AXECorg) September 13, 2024

September 12, 2024

Occasional Xs: What economists really do (CCCXXXVII)

#Economics #GeoPolitics #GeoEconomics

“Closing factories will not be enough to save Volkswagen”

No, because Volkswagen and other firms are caught in the geopolitical trap.

The ruin of the German #Economy and the impoverishment of #WeThePeople is the direct consequence of the…
— E.K-H (@AXECorg) September 12, 2024

Occasional Xs: What economists really do (CCCXXXVI)

#Economics #FailedFakeScience #DisInfoTainment

For 200+ years, economics has claimed to be #Science but still is NOT. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false &…
— E.K-H (@AXECorg) September 12, 2024

Occasional Xs: How it works (CCXLVIII)

#LearnRealEconomics

“Brussels explores Draghi-backed option of extending up to €350bn in EU pandemic debt to ease pressure on tight budget …”

The #FreeMarketEconomy runs on #Profit. Macroeconomic profit is given by the axiomatically correct #ProfitLaw / #BalancesEquation… pic.twitter.com/xazajo73Ef
— E.K-H (@AXECorg) September 12, 2024

Occasional Xs: What economists really do (CCCXXXV)

#LearnEconomics

From the macroeconomic #LawOfSupplyAndDemand ⇓ the intelligent layperson can immediately conclude that #Inflation rarely happens by accident but has to be engineered. This holds always and everywhere for #HyperInflation.

The representative economist does not… pic.twitter.com/9GLkX4hDBo
— E.K-H (@AXECorg) September 12, 2024

Occasional Xs: How it works (CCXLVII)

#HowItWorks

“Capitalism made it possible to become wealthy by serving your fellow man.” (Walter E. Williams)

The #FreeMarketEconomy a.k.a. #Capitalism runs on profit. Macroeconomic profit is given by the axiomatically correct #ProfitLaw / #BalancesEquation…
— E.K-H (@AXECorg) September 12, 2024

September 11, 2024

Occasional Xs: Clueless economists / Inflation (XXXII)

#LearnRealEconomics #Inflation is the #RateOfChange of the avg #Price. If it goes to zero the problems are NOT over because one is now on a higher #PriceLevel. A negative rate of change (#Deflation) is required to fully compensate for the previous price increase. It's the higher…
— E.K-H (@AXECorg) September 11, 2024

Occasional Xs: What economists really do (CCCXXXIV)

#Economics #GeoPolitics #GeoEconomics

The ruin of the German #Economy and the impoverishment of #WeThePeople is the direct consequence of the #Ampel's foreign/domestic #ZeitenWende policy which has been supported from the beginning by many so-called top economists (the SVR among…
— E.K-H (@AXECorg) September 11, 2024

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

#Economics #FailedFakeScience

Economics is about how the #Economy works. It is a #SystemsScience and NOT a #SocialScience. #Economists have been messing this up since Adam Smith.

The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their…
— E.K-H (@AXECorg) September 11, 2024

September 10, 2024

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

#HowItWorks #MMT's foundational #BalancesEquation is provably false, so their whole #Macroeconomics is scientifically worthless. ⇒

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

The axiomatically correct #BalancesEquation…
— E.K-H (@AXECorg) September 10, 2024

Occasional Xs: The futile attempt to recycle Milton Friedman (XXV)

#Economics #FailedFakeScience

There is nothing more terrible than scientifically failed economists with their populist phrases. pic.twitter.com/0qCkSpT4MU
— E.K-H (@AXECorg) September 10, 2024

September 9, 2024

Occasional Xs: The futile attempt to recycle Hayek (XXII)

#Economics #FailedFakeScience #DisInfoTainment

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 &…
— E.K-H (@AXECorg) September 9, 2024

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

#Economics #History

The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally inconsistent &…
— E.K-H (@AXECorg) September 9, 2024

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

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

“The economics profession has become insular and status-obsessed …” (David Deming)

That's NOT the real problem.

Economics claims to be #Science but is NOT. The major approaches (#Walrasianism, #Keynesianism,… pic.twitter.com/ffpOgwXpZL
— E.K-H (@AXECorg) September 9, 2024

For details of the big picture see cross-references Failed/Fake Scientists.

Occasional Xs: How it works (CCXLVI)

#HowItWorks

The #FreeMarketEconomy a.k.a. #Capitalism runs on profit. Macroeconomic profit is given by the axiomatically correct #ProfitLaw / #BalancesEquation (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0 (which consists of variables measurable with an accuracy of two decimal places).…
— E.K-H (@AXECorg) September 9, 2024

Occasional Xs: The futile attempt to recycle Hayek (XXI)

#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…
— E.K-H (@AXECorg) September 9, 2024

Occasional Xs: Clueless economists / Science (CXII)

#Economics #FailedFakeScience

The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally…
— E.K-H (@AXECorg) September 9, 2024

Occasional Xs: The futile attempt to recycle Milton Friedman (XXIV)

#Economics #FailedFakeScience

“Underlying most arguments against the free market is a lack of belief in freedom itself.” (Friedman)

“Underlying most arguments for the free market is the lack of scientific competence and the belief that Liberty flag-waving and free market…
— E.K-H (@AXECorg) September 9, 2024

September 8, 2024

Occasional Xs: How it works (CCXLV)

#Economics #PublicDebt #Interest

Dear folks, you are going to hit the wall as I told you in 2020 ⇒

From the debt economy to the gift economy: how America is brainwashed to love budget deficitshttps://t.co/gtHNBANDrN
— E.K-H (@AXECorg) September 8, 2024

Occasional Xs: Clueless economists / Inflation (XXXI)

#Economics #FailedFakeScience #Inflation

“We’re after that basic story. We will find it isn’t there.”

It isn't there because economics has been a failed/fake science for 200+ years.

The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their… pic.twitter.com/tNyeT86MiG
— E.K-H (@AXECorg) September 8, 2024

September 7, 2024

Occasional Xs: What economists really do (CCCXXXIII)

#Economics #FailedFakeScience

“The book as it stands, seems to me be one of the most frightful muddles I have ever read, with scarcely a sound proposition in it…. It is an extraordinary example of how, starting with a mistake, a remorseless logician can end up in bedlam.”…
— E.K-H (@AXECorg) September 7, 2024

Occasional Xs: Paradigm Shift (XXXVII)

#Economics #FailedFakeScience

The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally… pic.twitter.com/YhQiJwRPmJ
— E.K-H (@AXECorg) September 7, 2024

Occasional Xs: Clueless economists / Philosophy (VII)

#LearnRealEconomics

The #FreeMarketEconomy a.k.a. #Capitalism runs on profit. Macroeconomic profit is given by the axiomatically correct #ProfitLaw / #BalancesEquation (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0 (which consists of variables measurable with an accuracy of two decimal…
— E.K-H (@AXECorg) September 7, 2024

#Economics #FailedFakeScience #Philosophy

“She [Ayn Rand] advocated for the government getting out of the market entirely.”

This tells you that she had no clue how the economic #System works. If the growth of #PublicDebt stops macroeconomic #Profit goes to zero and the…
— E.K-H (@AXECorg) September 8, 2024

Occasional Xs: How it works (CCXLIV)

#Economics #Inflation

The axiomatically correct macroeconomic #LawOfSupplyAndDemand ⇓ tells one how ― in the elementary case ― the avg #Price P moves under the condition of #MarketClearing as a function of avg #WageRate W, inverse #Productivity R, and… pic.twitter.com/lNXaYgWXtr
— E.K-H (@AXECorg) September 7, 2024

Occasional Xs: What economists really do (CCCXXXII)

#Economics #FailedFakeScience #DisInfoTainment

What Gagarin proved was the techno-scientific superiority of the Soviet-Union. On the other hand, the USA has always been superior in creating science fiction and the fiction makers in Hollywood and in the Marketing/PR departments…
— E.K-H (@AXECorg) September 7, 2024

September 6, 2024

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

#Economics #FailedFakeScience #Keynesianism

For 200+ years, economics claims to be #Science but is NOT. #Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives are mutually contradictory, and axiomatically false, and materially/formally inconsistent, and… pic.twitter.com/R6oZq1idNB
— E.K-H (@AXECorg) September 6, 2024

Occasional Xs: What economists really do (CCCXXXI)

#Economics #FailedFakeScience

For 200+ years, economics has claimed 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) September 6, 2024

Occasional Xs: What economists really do (CCCXXX)

Dear Associate Prof of Economics JW Mason,#Economics is #FailedFakeScience. All approaches got the foundational concept of #Profit wrong. The representative #Economist is NOT a competent #Scientist but an #AgendaPusher / #UsefulIdiot / #PhraseMonger / #PsychoBabbler / #Clown in… pic.twitter.com/FQy3vSknds
— E.K-H (@AXECorg) September 6, 2024

September 5, 2024

Occasional Xs: Econ101― still proto-scientific garbage (V)

#Economics #FailedFakeScience

The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false & materially/formally… pic.twitter.com/FFNNRJq5BM
— E.K-H (@AXECorg) September 5, 2024

Occasional Xs: What economists really do (CCCXXIX)

#Economics #FailedFakeScience #DisInfoTainment

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) September 5, 2024

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

#Economics #FailedFakeScience

Economist's logic: Because #Capitalism / #FreeTrade “will always supply us with the wine which we have occasion for” it is the best economic system.

Adam Smith NEVER understood what #Profit is and how the economic #System works. So, economic… pic.twitter.com/mvHwU9GeXI
— E.K-H (@AXECorg) September 5, 2024

Occasional Xs: What economists really do (CCCXXVIII)

#Economics #FailedFakeScience #Econ101

The history of economic thought is the history of scientific failure. The major approaches (#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, and their derivatives) are mutually contradictory & axiomatically false &…
— E.K-H (@AXECorg) September 5, 2024

Occasional Xs: How it works (CCXLIII)

#Econ #GeoEconomics

“GDP growth is driven by two factors: population growth times productivity increase. … One must be nuts to prefer Euro over USD for long-term investment purposes.”

1. Population growth is irrelevant to GDP growth when it occurs in tent camps, such as in…
— E.K-H (@AXECorg) September 5, 2024

September 4, 2024

Occasional Xs: What economists really do (CCCXXVII)

#Economics #GeoPolitics #GeoEconomics

The ruin of the German #Economy and the impoverishment of #WeThePeople is the direct consequence of the #Ampel's foreign/domestic #ZeitenWende policy which has been supported from the beginning by the economic experts of the…
— E.K-H (@AXECorg) September 4, 2024

Occasional Xs: What economists really do (CCCXXVI)

#Economics #FailedFakeScience

“Economics is about the freedom to live our best lives.”

No, economics is NOT about happiness and “striving and living and dreaming”.

How is it that economists talk so much about #Freedom / #Liberty / #GreatesHappinessOfTheGreatestNumber but when… pic.twitter.com/aMNBcls8Sv
— E.K-H (@AXECorg) September 4, 2024

Occasional Xs: What economists really do (CCCXXV)

#HowItWorks

The #FreeMarketEconomy a.k.a. #Capitalism runs on profit. Macroeconomic profit is given by the axiomatically correct #ProfitLaw / #BalancesEquation (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0 (which consists of variables measurable with an accuracy of two decimal places).… pic.twitter.com/8L2QZuh71V
— E.K-H (@AXECorg) September 4, 2024

September 3, 2024

Occasional Xs: The foul spirit of political economics (LXXXV)

#Economics #FailedFakeScience

Memo to agenda-pushing academic #Economists ⇓. Get out of the political #CircusMaximus. pic.twitter.com/U2LCwXY108
— E.K-H (@AXECorg) September 3, 2024

For details of the big picture see cross-references Political Economics/Stupidity/Corruption.

Occasional Xs: What economists really do (CCCXXIV)

#Economics #GeoPolitics #GeoEconomics

As you know, #Europe has not had full #Souvereignty since the end of WWII. So, the discussion about Macron, Melenchon, Le Pen, Scholz, Habeck, Baerbock, etc. “and how, through their actions, they got us into a mess” is pointless. These folks…
— E.K-H (@AXECorg) September 3, 2024

Occasional Xs: How it works (CCXLII)

#HowItWorks

Well governed society?” (M. Gayed)

The #FreeMarketEconomy runs on profit. Macroeconomic profit is given by the axiomatically correct #ProfitLaw / #BalancesEquation (I−Sm)+(G−T)+(X−M)−(Qm−Yd)≐0 (which consists of variables measurable with an accuracy of two…
— E.K-H (@AXECorg) September 3, 2024

September 2, 2024

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

#Economics #FailedFakeScience #Economists #StupidOrCorruptOrBoth

Since the founding fathers, #Economists have claimed to be doing science but they did NOT. They disguised political #AgendaPushing as #Science or #EnlightenedPhilosophy or #ProgressiveEthics or… pic.twitter.com/NEeMfXzYeo
— E.K-H (@AXECorg) September 2, 2024

September 1, 2024

Occasional Xs: Clueless economists / Phillips Curve (XIII)

#LearnRealEconomics

Samuelson/Solow messed up the original #PhillipsCurve back in 1960.

NAIRU, wage-led growth, and Samuelson's Dyscalculiahttps://t.co/qDrdo8HL46

The axiomatically correct macrofounded Phillips Curve 3.0 is shown below ⇓. pic.twitter.com/a5b5Rc6y07
— E.K-H (@AXECorg) September 1, 2024

Also at Phil Magness

Occasional Xs: Scrap the EconNobel (XVI)

#Economics #NobelPrize

For 200+ years, economics has claimed 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… pic.twitter.com/tlboR5fh3l
— E.K-H (@AXECorg) September 1, 2024

Occasional Xs: What economists really do (CCCXXIII)

#Economics #FailedFakeScience

“True freedom means owning your life and choices.”

How is it that economists talk so much about #Freedom / #Liberty / #OwningYourself but when it comes to how the economic #System works they can not tell to this day what #Profit ― the foundational…
— E.K-H (@AXECorg) September 1, 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.

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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.