AXEC: New Foundations of Economics: July 2025

July 21, 2025

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

#Economics #AllYouNeedToKnow

Contribution to the “intellectual biography” of one of MMT's patrons:

Warren Mosler: scientific dilettante and political fraudsterhttps://t.co/J5mELLa55M pic.twitter.com/nWxg6G1uYA
— AXEC (@EgmontHandtke) July 21, 2025

Occasional Xs: Clueless economists / Employment (XVIII)

#Economics #AllYouNeedToKnow

The axiomatically correct macroeconomic Employment Law ⇓ tells one that employment L (and by consequence output O=RL) increases if the avg wage rate W rises faster than the avg product price P, and if the expenditure ratio ρE is > 1, i.e., with… pic.twitter.com/p9hAX0mnYE
— AXEC (@EgmontHandtke) July 21, 2025

Occasional Xs: Clueless economists / Breakdown (XII)

#Economics #AllYouNeedToKnow

“… are we supposed to keep waiting another decade for the doomsday that mainstream economists keep predicting?” (litewhisperer)

From axiomatically correct economics follows that the doomsday is built into the free-market economy, only the exact…
— AXEC (@EgmontHandtke) July 21, 2025

Occasional Xs: Clueless economists / Science (CLXXIX)

#Economics #AllYouNeedToKnow

“To make his theory more attractive, Keynes called it ‘The General Theory.’ In fact, he knew precisely that it was not a general theory. It was an argument to persuade the government in the 1930s to do particular things.” (Friedrich Hayek)

Keynes… pic.twitter.com/Dgp1e2c0x9
— AXEC (@EgmontHandtke) July 21, 2025

July 20, 2025

Occasional Xs: Clueless economists / Inflation (XLV)

#Economics #AllYouNeedToKnow

From the axiomatically correct macroeconomic Law of Supply and Demand ⇓ follows that the lethal effect of deficit-spending/money-creation is on distribution and not on inflation. For details see ⇒

Dear idiots, government deficits do NOT cause… pic.twitter.com/BF8vPGX3DD
— AXEC (@EgmontHandtke) July 20, 2025

Occasional Xs: Clueless economists / Breakdown (XI)

#Economics #AllYouNeedToKnow

“Therefore, the number of depressions that followed after a large deficit is zero.” (Grok)

Yes, and why is this so?

The free-market economy runs on profit. Macroeconomic #Profit Qm is given by the axiomatically correct Profit Law/Balances Equation…
— AXEC (@EgmontHandtke) July 20, 2025

July 19, 2025

Occasional Xs: How it works (CCCLXXVII)

#Economics #AllYouNeedToKnow

“The deficit is the natural position of the state budget.… It's a reflection of private savings and the external deficit. The real scandal? That our leaders still haven't understood this.”
“Using irrefutable accounting identities, the ones every… pic.twitter.com/afmiixcYPT
— AXEC (@EgmontHandtke) July 19, 2025

Occasional Xs: How it works (CCCLXXVI)

#Economics #AllYouNeedToKnow

“'Free market' is a summary term for an array of exchanges that take place in society. Each exchange is undertaken as a voluntary agreement between two people or between groups of people represented by agents.” (Murray Rothbard)

Murray Rothbard…
— AXEC (@EgmontHandtke) July 19, 2025

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

#Economics #AllYouNeedToKnow

“New Macroeconomics - Chinese translation of the MMT macro textbook.” (Yan Ling)

MMT's foundational balances equation is provably false, so their whole macroeconomics is false. ⇒

Refuting MMT’s Macroeconomics Textbookhttps://t.co/nRk2rDyVs3

When…
— AXEC (@EgmontHandtke) July 19, 2025

July 18, 2025

Occasional Xs: Clueless economists / Money (XXX)

#Economics #AllYouNeedToKnow

“What we call 'the economy' is so important to us that economists have become the high priests of our society. Yet, oddly, there is absolutely no consensus among economists about what money really is.” (David Graeber)

True until now ⇒
The…
— AXEC (@EgmontHandtke) July 18, 2025

Occasional Xs: Clueless economists / Money (XXIX)

#Economics #AllYouNeedToKnow

“Government spend by creating money. The 'national debt' is the total of government spending that has not yet been recovered in taxes. It is an accounting residual. The size is of no consequence.” (Malcolm Reavell approvingly quoting Lord Macauley)…
— AXEC (@EgmontHandtke) July 18, 2025

Occasional Xs: Clueless economists / Money (XXVIII)

#Economics #AllYouNeedToKnow

“… when the banker has a deficit, the players have the resulting identical SURPLUS.” (Mark Flowerchild)

Not quite correct. So, sit down, activate your two remaining brain cells and try to understand how balances are interconnected and how licit…
— AXEC (@EgmontHandtke) July 18, 2025

July 17, 2025

Occasional Xs: Clueless economists / Science (CLXXVIII)

#Economics #AllYouNeedToKnow

The history of economic thought is the history of scientific failure.

Economics claims to be science, but is NOT. The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and their derivatives) are mutually contradictory &… pic.twitter.com/dMbMrdTSJO
— AXEC (@EgmontHandtke) July 17, 2025

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

#Economics #AllYouNeedToKnow

“The difficulty lies not so much in developing new ideas as in escaping from old ones.” (Keynes)

Keynes got macroeconomic #Profit wrong because he was too stupid for elementary Algebra. So, he messed up the long overdue Paradigm Shift from… pic.twitter.com/1tQ3cqw8M4
— AXEC (@EgmontHandtke) July 17, 2025

Occasional Xs: How it works (CCCLXXV)

#Economics #AllYouNeedToKnow

“How much public debt is too much public debt? How do you calculate it, besides the super idiotic VAR model application?” (Shahin Ashkiani)

Here is how to determine the absolute upper limit of public debt.

The free-market economy a.k.a. Capitalism…
— AXEC (@EgmontHandtke) July 17, 2025

July 16, 2025

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

#Economics #AllYouNeedToKnow

“The history of government management of money has, except for a few short happy periods, been one of incessant fraud and deception.” (Friedrich Hayek)

“The history of economic thought has, except for a few short happy periods, been one of incessant… pic.twitter.com/ky9esBn1cY
— AXEC (@EgmontHandtke) July 16, 2025

Occasional Xs: How it works (CCCLXXIV)

#Economics #AllYouNeedToKnow

“1. Currency Issuing Government spends currency 2. Taxpayers use currency to pay tax” (Michael Sanderson)

Why does profit not appear on your Currency Issuer Thesaurus? Isn't this the foundational concept of economics? Obviously, you have no clue of…
— AXEC (@EgmontHandtke) July 16, 2025

#MMT #BadScienceBadPolicyBadPeople

You are not up to date. Warren Mosler has been refuted long ago.

MMT: The one deadly error/fraud of Warren Moslerhttps://t.co/wKI0WoPwoU

MMT, Warren Mosler, and the little helpers from Wall Street and Academiahttps://t.co/3HTR2oUC7S

Warren…
— AXEC (@EgmontHandtke) July 16, 2025

#MMT #BadScienceBadPolicyBadPeople

That money is created out of nothing and backed by nothing is NOT the critical point of a fiat money system. The point is whether money is injected (i) on the left side of the business sector's national account in the form of wages or (ii) on… pic.twitter.com/2XZM5VUydD
— AXEC (@EgmontHandtke) July 16, 2025

July 15, 2025

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

#Economics #AllYouNeedToKnow

von Mises never understood profit and how the economic system works. That's rather bad for an economist.

The free-market economy runs on profit. Macroeconomic #Profit Qm is given by the axiomatically correct Profit Law/Balances Equation…
— AXEC (@EgmontHandtke) July 15, 2025

Occasional Xs: Clueless economists / Science (CLXXVII)

#Economics #AllYouNeedToKnow

“When the disciplines of economics and sociology were being invented in Britain 250 years ago, their progenitors such as Adam Smith, David Hume, Adam Ferguson, and others were preoccupied with how vibrant commercial activity and human behavior were… pic.twitter.com/iWlwOc5TXu
— AXEC (@EgmontHandtke) July 15, 2025

Correction typo: it's Luhmann

July 14, 2025

Occasional Xs: Paradigm Shift (LXIX)

#Economics #AllYouNeedToKnow

Economics has defined itself as a social science. This has been the fatal methodological error/mistake/blunder.

Since the founding fathers, economics has claimed to be a science but still is NOT. The major approaches (Walrasianism, Keynesianism,… pic.twitter.com/SThW3IFFTZ
— AXEC (@EgmontHandtke) July 14, 2025

Occasional Xs: How cargo cult science works (III)

#Economics #AllYouNeedToKnow

“There is basically no difference between socialism and fascism.” (Friedrich Hayek)

There is basically no difference between Hayek and a Cargo Cultist.

Hayek did not understand profit and how the economic system works. That's rather bad for an… pic.twitter.com/UyIjrzj6tv
— AXEC (@EgmontHandtke) July 14, 2025

July 13, 2025

Occasional Xs: Clueless economists / Science (CLXXVI)

#Economics #AllYouNeedToKnow

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 & materially/formally… pic.twitter.com/iswjf8M8yW
— AXEC (@EgmontHandtke) July 13, 2025

July 12, 2025

Occasional Xs: How it works (CCCLXXIII)

#Economics #AllYouNeedToKnow

“How does this relate to budget surpluses?” (Phil Waller)

Ok, sit down and listen.

The free-market economy runs on profit. Macroeconomic #Profit Qm is given by the axiomatically correct Profit Law/Balances Equation…
— AXEC (@EgmontHandtke) July 12, 2025

If you had any clue about math you would know that the first thing in math is proof. 'I can say for certainty' counts for nothing, only proof counts. So, prove the macroeconomic Profit Law wrong and show the proof here on X.
— AXEC (@EgmontHandtke) July 13, 2025

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

#Economics #AllYouNeedToKnow

“Nobody can be a great economist who is only an economist—and I am even tempted to add that the economist who is only an economist is likely to become a nuisance if not a positive danger.” (Friedrich Hayek)

Economics claims to be science but is NOT.… pic.twitter.com/UNNqWwXNs8
— AXEC (@EgmontHandtke) July 12, 2025

July 11, 2025

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

#Economics #AllYouNeedToKnow

“Hayek’s books should be available & recommended at more schools. Agree?” (Hayek Quotes)

No. Brainwashing children is one of the worst political crimes.

Economics claims to be science but is NOT. The major approaches (Walrasianism, Keynesianism,… pic.twitter.com/xhtWlhvTkh
— AXEC (@EgmontHandtke) July 11, 2025

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

#Economics #AllYouNeedToKnow

“MMT is a description of an accounting fact when sovereign states issue their own currency. “ (David Rogers)

No, MMTers are too stupid for macroeconomic accounting. They have never understood profit and, as a logical consequence, how the economy… pic.twitter.com/S2lQZzsHwq
— AXEC (@EgmontHandtke) July 11, 2025

July 10, 2025

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

#Economics #AllYouNeedToKnow

'The great achievements of science have not come from economists. To this day, economics has not progressed above the level of proto-scientific garbage.' (Friedman paraphrases)

Economics claims to be science but is NOT. The major approaches… pic.twitter.com/89Y0JxByHw
— AXEC (@EgmontHandtke) July 10, 2025

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

#Economics #FailedFakeScience

Keynes got macroeconomic profit wrong because he was too stupid for elementary algebra. So, he messed up the Paradigm Shift from microfoundations to macrofoundations. Because of this initial blunder, the whole of (micro & macro) economics is… pic.twitter.com/CzCTFZRaeU
— AXEC (@EgmontHandtke) July 10, 2025

July 9, 2025

Occasional Xs: The futile attempt to recycle von Mises (VIII)

#Economics #AllYouNeedToKnow

“…Mises … one of the greatest economic thinkers of the 20th century.” (Mises Media)

von Mises never understood profit and how the economy works. That's rather bad for an economist.

The free-market economy runs on profit. Macroeconomic #Profit Qm…
— AXEC (@EgmontHandtke) July 9, 2025

Occasional Xs: How it works (CCCLXXII)

#Economics #AllYouNeedToKnow

“The U.S. Stock Market now has a higher market cap than Europe, China, Hong Kong, Japan, India, United Kingdom, France, Germany, Spain, Italy, Brazil, Mexico, and South Africa COMBINED 👀👀 Thought American Exceptionalism was dead?” (Barchard)

True.…
— AXEC (@EgmontHandtke) July 9, 2025

X, Jul 25, 2025

July 6, 2025

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

#Economics #AllYouNeedToKnow

“An economist who is only an economist cannot even be a good economist.” (Friedrich Hayek)

Economics claims to be science but is NOT. The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and their derivatives) are mutually… pic.twitter.com/J9fZfqEKen
— AXEC (@EgmontHandtke) July 6, 2025

July 2, 2025

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

#Economics #AllYouNeedToKnow

“Look at it! Govt sector surplus = Private sector deficit.” (Russell Wadey)

There is no such thing as the 'private sector', there is the business sector and the household sector.

So, the correct balances equation says: Govt sector deficit =…
— AXEC (@EgmontHandtke) July 2, 2025

July 1, 2025

Occasional Xs: How it works (CCCLXXI)

#Economics #AllYouNeedToKnow

“Billionaires are not bad if they become rich by innovating and creating. Rent-seeking billionaires are, on the other hand, bad. ” (Vincent Geloso)

What exactly is it that helps to create billionaires? Econ profs still have not figured that out.…
— AXEC (@EgmontHandtke) July 1, 2025

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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.