AXEC: New Foundations of Economics: January 2026

January 24, 2026

Occasional X: Clueless economists / Productivity (I)

#Economics #AllYouNeedToKnow

“However, standard labour productivity aggregates wages, profits, rents, and interest into its numerator while normalising solely by labour input. ” (James Young)

Because wages are flows and macroeconomic profit is a difference of flows, “wages,… pic.twitter.com/9VTSfzlh7V
— AXEC (@EgmontHandtke) January 24, 2026

Occasional X: How it works (CDXLIII)

#Economics #AllYouNeedToKnow

“It’s not primarily that interest income is 'stimulating' demand in the Keynesian sense.” (James Young)

James Young does not understand what profit is, and by consequence, how the economy works. Therefore, the rest of his macroeconomics has no valid…
— AXEC (@EgmontHandtke) January 24, 2026

Occasional X: The foul spirit of political economics (CXCIV)

#Economics #AllYouNeedToKnow

The true triumph of economics: Bentham's Panopticon is back with AI.

For more about Bentham/Utilitarianism, see
The unveiled mystery of economics blatherhttps://t.co/9RUV9Hk6km

and the queryhttps://t.co/LKY2meznTL
— AXEC (@EgmontHandtke) January 24, 2026

Occasional X: The foul spirit of political economics (CXCIII)

#Economics #AllYouNeedToKnow

“Es gibt keine größere Bedrohung für die Zivilisation als eine Regierung aus unfähigen, korrupten oder niederträchtigen Männern.” (Ludwig von Mises)

Corrected:

“Es gibt keine größere Bedrohung für die Zivilisation als eine Universität mit… pic.twitter.com/JIKnuIMY4w
— AXEC (@EgmontHandtke) January 24, 2026

January 23, 2026

Occasional X: The futile attempt to recycle Marx (LII)

#Economics #AllYouNeedToKnow

Because Marx got the foundational magnitude of economics—profit—wrong, his communicative contribution reduces to psycho-social-political-philosophical blather.

Marx/Engels called their common project Scientific Socialism‡, but its scientific…
— AXEC (@EgmontHandtke) January 23, 2026

Occasional X: The foul spirit of political economics (CXCII)

#Economics #AllYouNeedToKnow

“The political world is not much better, given the short tenure of political appointments.” (Jørgen Randers)

The retarded representative economist neither understands economics nor politics. ⇓ He has not yet realized that the tenure of political… pic.twitter.com/fYizqZok2M
— AXEC (@EgmontHandtke) January 23, 2026

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

#Economics #AllYouNeedToKnow

“… it (government) can't run out of dollars any more than a carpenter can run out of inches.” (Stephanie Kelton)

This nonsensical comparison tells everyone how false MMT is, how dumb MMTers are, and how retarded MMT propagandists are.

The… pic.twitter.com/QcAIFhwaNO
— AXEC (@EgmontHandtke) January 23, 2026

Occasional X: Clueless economists / Tax (III)

#Economics #AllYouNeedToKnow

“Food, shelter, electricity, and healthcare don’t exist by wishing. They require labor, production, expertise, and time. Declaring them 'guaranteed regardless of income' doesn’t make them free. It just shifts the burden onto others by force. That… pic.twitter.com/uNYILcws7R
— AXEC (@EgmontHandtke) January 23, 2026

Occasional X: The foul spirit of political economics (CXCI)

#Economics #AllYouNeedToKnow

“Doing proper economics is difficult. Especially if you don't know much about it.” (Per Bylund)

Per Bylund does not understand profit, and by consequence, how the economy works. That's self-disqualifying.

Keynes, too, misunderstood the concept of… pic.twitter.com/Rv6GdWdZHx
— AXEC (@EgmontHandtke) January 23, 2026

Occasional X: Clueless economists / Inflation / Deflation (XLX)

#Economics #AllYouNeedToKnow

“Did Profits Cause Inflation? A popular narrative has attributed the post-COVID rise in inflation to a rise in corporate profits. The literature in industrial organization offers three reasons for price changes: increases in demand, increases in… pic.twitter.com/UBEcBRqAoI
— AXEC (@EgmontHandtke) January 23, 2026

January 22, 2026

Occasional X: How it works (CDXLII)

#Economics #AllYouNeedToKnow

“I challenge you to find a single current politician who has the profound knowledge of economics and philosophy that Javier Milei possesses.” (In Milei We Trust)

Javier Milei does not understand what profit is, and by consequence, how the economy…
— AXEC (@EgmontHandtke) January 22, 2026

Occasional X: Economics is failed/fake science (X)

#Economics #AllYouNeedToKnow

“'Capitalism' works fine.” (Fight With Memes)

All the good things in the universe come from Science — not from Capitalism, or Socialism, or Liberty, or Government.

Economics has been a failed/fake science for 200+ years. The major approaches… pic.twitter.com/9kVzIsktTV
— AXEC (@EgmontHandtke) January 22, 2026

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

#Economics #AllYouNeedToKnow

“… it (government) can't run out of dollars any more than a carpenter can run out of inches.” (Stephanie Kelton)

This nonsensical comparison tells everyone how false MMT is, how dumb MMTers are, and how retarded MMT propagandists are.

For the… pic.twitter.com/GXCzDxVvfI
— AXEC (@EgmontHandtke) January 22, 2026

January 21, 2026

Occasional X: Clueless economists / Science (CCXLIII)

#Economics #AllYouNeedToKnow

“An Equilibrium Theory of the Distribution of Income and Intergenerational Mobility.” (by Gary Becker and Nigel Tomes)

Distribution has NOTHING to do with the assumption “that each family maximizes a utility function spanning several generations."… pic.twitter.com/LjLXuxKk08
— AXEC (@EgmontHandtke) January 21, 2026

Occasional X: The futile attempt to recycle Marginalism (III)

#Economics #AllYouNeedToKnow

“A simple but underappreciated point: While unions may improve the material conditions of some workers on the margins, they will never sustainably push wages over workers’ marginal products.” (Chris Freiman)

There is the average real wage rate and… pic.twitter.com/get8q7uFU9
— AXEC (@EgmontHandtke) January 21, 2026

Occasional X: How it works (CDXLI)

#Economics #AllYouNeedToKnow

“Larry is right, the economy is rigged. He rigged it.” (Warren Gunnels)

That the economy appears to be rigged is bad, but that economics has been rigged for 200+ years is worse. In the grand scheme of things, only science counts. The rest is…
— AXEC (@EgmontHandtke) January 21, 2026

Occasional X: The foul spirit of political economics (CXC)

#Economics #AllYouNeedToKnow

“I'm proud to be a Canadian, and I'm proud of Mark Carney's statements.” (Relearning Economics)

Whatever Mark Carney said, you cannot be proud of it. German philosophy tells you that you can only be proud of your own achievements:

“Every miserable… pic.twitter.com/0SOv4qKYL5
— AXEC (@EgmontHandtke) January 21, 2026

Occasional X: Economics is failed/fake science (IX)

#Economics #AllYouNeedToKnow

“The govt can't even deliver mail efficiently, but sure, let's trust them with healthcare, retirement, and your kids' minds.” (Connor Boyack)

'Economists don't understand even profit, but sure, let's trust them with economic policy guidance.' (AXEC)… pic.twitter.com/7IkBsuk7gM
— AXEC (@EgmontHandtke) January 21, 2026

Occasional X: Clueless economists / Profit (CXXVII)

#Economics #AllYouNeedToKnow

Ricardo NEVER understood profit and how the economic system works. When the foundational concepts of the subject are inconsistent, the whole analytical superstructure is scientifically worthless.

For proof, see
Ricardo, too, got profit theory wrong…
— AXEC (@EgmontHandtke) January 21, 2026

Occasional X: How it works (CDXL)

#Economics #AllYouNeedToKnow

“The world is composed of 192 countries lending money to the US, and of the US buying stuff with it.” (Renaud Foucart)

Renaud Foucart does not understand profit, and by consequence, how the economic system works. This is self-disqualifying.

The… pic.twitter.com/PKMXCg8UAw
— AXEC (@EgmontHandtke) January 21, 2026

Occasional X: How it works (CDXXXIX)

#Economics #AllYouNeedToKnow

“On a rolling 5-year basis, U.S. stocks have now outperformed for 15 years running. This is the longest stretch of U.S. outperformance in history.” (Peter Mallouk)

Peter Mallouk does not understand profit, and by consequence, how the economic system… pic.twitter.com/1bQDNm782v
— AXEC (@EgmontHandtke) January 21, 2026

January 20, 2026

Occasional X: Clueless economists / Money (LXXXV)

#Economics #AllYouNeedToKnow

“The micro foundation of MMT is modeling the currency itself as a public monopoly.” (Warren Mosler)

MMT's economics is provably false, see
Cross-references: MMThttps://t.co/eXlgPKrinA

For the consistent monetary theory, see the working paper
The…
— AXEC (@EgmontHandtke) January 20, 2026

For more about Warren Mosler, see AXECquery.

Occasional X: Clueless economists / Science (CCXLII)

#Economics #AllYouNeedToKnow

What Marx said about God and Satan is irrelevant. What believers say about knowledge is irrelevant. What religions say about science is irrelevant.

Because Marx got the foundational magnitude of economics—profit—wrong, his communicative contribution…
— AXEC (@EgmontHandtke) January 20, 2026

Occasional X: Clueless economists / Science (CCXLI)

#Economics #AllYouNeedToKnow

“We must reoccupy the public space, not as spectators, but as participants. That means gathering, debating, questioning.” (Will Ogilvie Vega de Seoane)

Economists never understood the difference between politics and science.

For over 200 years,… pic.twitter.com/JsWpDDoQRK
— AXEC (@EgmontHandtke) January 20, 2026

Occasional X: Economics is failed/fake science (IX)

#Economics #AllYouNeedToKnow

“Funny how 'follow the science' never applies to the economics of minimum wage, rent control, or money printing…” (Connor Boyack)

Connor Boyack never understood profit and, as a consequence, how the economic system works. That's self-disqualifying.…
— AXEC (@EgmontHandtke) January 20, 2026

For more about the humble economist, see AXECquery.

For more about humility, see AXECquery.

Occasional X: The foul spirit of political economics (CLXXXIX)

#Economics #AllYouNeedToKnow

“In response, God destroyed their plans so that they would have to recognize their humble condition. This story contains an implicit lesson in economics.” (Felipe Modesto)

The implicit lesson is: God devastated the minds of economists, and this is… pic.twitter.com/OIbuMR6A4s
— AXEC (@EgmontHandtke) January 20, 2026

Occasional X: MMT ― trolling for the Oligarchy (VII)

#Economics #AllYouNeedToKnow

Remember Bill Mitchell in 2019: “The conclusion is obvious. … It is clear that the mainstream macroeconomic explanation of the relationships between fiscal deficits, interest rates, bond yields and inflation rates is unable to adequately capture the…
— AXEC (@EgmontHandtke) January 20, 2026

For more about Japan, see AXECquery.

Occasional X: Paradigm Shift (XCVIII)

#Economics #AllYouNeedToKnow

“Although Keynes’s General Theory provides the foundation for much of our current understanding of economic fluctuations, it is important to remember that classical economics provides the right answers to many fundamental questions.” (Greg Mankiw,… pic.twitter.com/pzAdgkeqmL
— AXEC (@EgmontHandtke) January 20, 2026

Occasional X: Clueless economists / Money (LXXXIV)

#Economics #AllYouNeedToKnow

Keynes, too, misunderstood the concept of profit because he was too stupid for elementary algebra. ⇓ So, he was part of economics as a failed/fake science.

Keynes'sss economic theory was provably false in general, and, as a logical consequence, his… pic.twitter.com/OuerXMDBgY
— AXEC (@EgmontHandtke) January 20, 2026

Occasional X: The foul spirit of political economics (CLXXXVIII)

#Economics #AllYouNeedToKnow

Ninety-nine percent of daily produced communication is brain-dead blather, but populist economics is the worst. Milton Friedman and Thomas Sowell are the worst of the worst.

“I am in favor of cutting taxes under any circumstances and for any excuse,…
— AXEC (@EgmontHandtke) January 20, 2026

Occasional X: How it works (CDXXXIII)

#Economics #AllYouNeedToKnow

“The belief that the rich are a problem arises from the same misguided zero-sum thinking that leads others to believe that immigration is a problem.” (Chris Freiman)

Economics is not a problem of perception. Neither the average person nor the…
— AXEC (@EgmontHandtke) January 20, 2026

January 19, 2026

Occasional X: Economics is failed/fake science (VIII)

#Economics #AllYouNeedToKnow

“Generally, whatever Milton Friedman said, people should do that thing.” (Elon Musk)

Milton Friedman never understood profit and, as a consequence, how the economic system works. That's self-disqualifying.

Economics as a science is NOT about right…
— AXEC (@EgmontHandtke) January 19, 2026

Occasional X: The foul spirit of political economics (CLXXXVII)

#Economics #AllYouNeedToKnow

“In capitalism, the one who earns the most money does so because they manage to serve their fellow man with better quality goods, at a better price. That person is a hero.” (Javier Milei)

Javier Milei does not understand profit, and by consequence,…
— AXEC (@EgmontHandtke) January 19, 2026

Occasional X: The futile attempt to recycle Milton Friedman (XLIX)

#Economics #AllYouNeedToKnow

“Is there some society you know that doesn’t run on greed? You think Russia doesn’t run on greed? You think China doesn’t run on greed? ” (Milton Friedman)

Greed is the business of psychology/sociology, not economics. Economics has defined itself as… pic.twitter.com/SXdo6yf3kR
— AXEC (@EgmontHandtke) January 19, 2026

Occasional X: The foul spirit of political economics (CLXXXVI)

#Economics #AllYouNeedToKnow

“Capitalism doesn’t promise comfort, stability, or immunity from effort. It promises one thing only: that rewards track value created, not need, not exhaustion, not intention. (Rock Chartrand)

Rock Chartrand does not know what profit is, and as a…
— AXEC (@EgmontHandtke) January 19, 2026

Occasional X: How it works (CDXXXII)

#Economics #AllYouNeedToKnow

“At the peak of the Gilded Age in 1910, the richest 0.00001% of the US population owned wealth equal to 4% of national income. Now, the richest 0.00001% owns 12%. US billionaire oligarchs today are even wealthier than the original robber barons.”…
— AXEC (@EgmontHandtke) January 19, 2026

Also at Michael Arouet.

January 18, 2026

Occasional X: Clueless economists / Employment (XXV)

#Economics #AllYouNeedToKnow

The problem is that minimum wages have to be introduced across all firms at the same time to stop some firms taking advantage of others. In this case, total employment increases. Actually, one has partial minimum wage increases, and the effect on… pic.twitter.com/mZLtmp7sYY
— AXEC (@EgmontHandtke) January 18, 2026

Occasional X: The foul spirit of political economics (CLXXXV)

#Economics #AllYouNeedToKnow

“There’s no such thing as a 'capitalist system' that serves one group at the expense of another. If the state is picking winners and losers, that isn’t capitalism. … Capitalism is voluntary exchange under equal rights.” (Rock Chartrand)

Whatever…
— AXEC (@EgmontHandtke) January 18, 2026

January 17, 2026

Occasional X: Economics is failed/fake science (VII)

#Economics #AllYouNeedToKnow

“The inauguration of a systematic science of economics, an achievement of the social philosophy of the Enlightenment that also begot the doctrine of popular sovereignty, was a challenge to the powers that be.” (Ludwig von Mises)

Ludwig von Mises… pic.twitter.com/HB4JkL3ThY
— AXEC (@EgmontHandtke) January 17, 2026

Occasional X: Clueless economists / Distribution, Inequality (XVIII)

#Economics #AllYouNeedToKnow

“What role does inequality play in global authoritarian regimes today? How is inequality related to democratic backsliding?” (Daron Acemoglu)

'What role do academic economists play in global inequality?' (AXEC)

The free-market economy, a.k.a.…
— AXEC (@EgmontHandtke) January 17, 2026

Occasional X: The futile attempt to recycle Marx (LI)

#Economics #AllYouNeedToKnow

“I call myself a Marxist because capitalism is a system of violent class struggle in the web of life.” (Jason Moore)

Whatever this is, it's not economics.

Because Marx got the foundational magnitude of economics—profit—wrong, his communicative…
— AXEC (@EgmontHandtke) January 17, 2026

Occasional X: Economics is failed/fake science (VI)

#Economics #AllYouNeedToKnow

“Keynes was a demon.” (Elon Musk)

Whether Keynes was a saint or a demon is an irrelevant question. The relevant question is whether he was a scientist or a political agenda-pusher. In the grand scheme of things, only scientists matter.

The fact is… pic.twitter.com/2FW0A7SwA4
— AXEC (@EgmontHandtke) January 17, 2026

January 16, 2026

Occasional X: Clueless economists / Breakdown (XIX)

#Economics #AllYouNeedToKnow

There is an absolute upper limit for the growth of public debt, which is given by public_debt times avg_interest ≦wage_income. Economic problems, though, start much earlier.

For details, see ⇒
From the debt economy to the gift economy: how America…
— AXEC (@EgmontHandtke) January 16, 2026

Occasional X: The foul spirit of political economics (CLXXXIV)

#Economics #AllYouNeedToKnow

Milton Friedman never understood profit and, as a consequence, how the economic system works. That's self-disqualifying.

Economics as a science is NOT about right or left, good or bad, Capitalism or Socialism, state or society, but about true or…
— AXEC (@EgmontHandtke) January 16, 2026

Occasional X: The futile attempt to recycle Hayek (XLXI)

#Economics #AllYouNeedToKnow

“If Socialists understood economics, they wouldn't be Socialists.” (Friedrich von Hayek)

'If Austrians were competent scientists, they wouldn't be silly agenda pushers.” (AXEC)

Hayek never understood profit and, as a consequence, how the economic… pic.twitter.com/dDwz7aKzwN
— AXEC (@EgmontHandtke) January 16, 2026

Occasional X: How it works (CDXXXI)

#Economics #AllYouNeedToKnow

“Dear followers, please see my article on A Unified Theory. Both Trump’s domestic and foreign policies can be best understood as an attempt to build an imperial presidency by elevating executive power and destroying constraining institutions and…
— AXEC (@EgmontHandtke) January 16, 2026

January 15, 2026

Occasional X: How it works (CDXXX)

#Economics #AllYouNeedToKnow

“While political intervention in monetary policy is worrisome, Central Bank officials should keep silence and let other people defend the independence.” (Vincent Geloso)

Some words are like a medieval excommunication curse from the Pope. One of them…
— AXEC (@EgmontHandtke) January 15, 2026

Occasional X: The futile attempt to recycle behavioral economics (XI)

#Economics #AllYouNeedToKnow

“To understand economics is to understand human action.” (Peter Boettke)

No, that's the business of psychology/sociology. Economics has defined itself as a social science and accordingly has been based on subjective/behavioral axioms.

First… pic.twitter.com/Dhr5PyYnns
— AXEC (@EgmontHandtke) January 15, 2026

January 14, 2026

Occasional X: The foul spirit of political economics (CLXXXVIII)

#Economics #AllYouNeedToKnow

“That's right, isn't it? The deficit can be any size, the debt can be any size, provided they don't cause inflation. Everything else is just talk.” (J. F. Kennedy, according to James Tobin)

Like Tobin, JFK had no idea how the economy works.

There…
— AXEC (@EgmontHandtke) January 14, 2026

***

Twitter/X Jan, 16, 2016

Occasional X: Clueless economists / Money (LXXXIII)

#Economics #AllYouNeedToKnow

“Wow. Statement signed by the heads of the ECB, BoE, Riksbank, the Danish Nationalbank, SNB, RBA, Boc, BoK, BCdB, BIS” (Joe Weisenthal)

Some words are like a medieval excommunication curse from the Pope. One of them is Central Bank independence.…
— AXEC (@EgmontHandtke) January 14, 2026

Occasional X: Clueless economists / Breakdown (XVIII)

#Economics #AllYouNeedToKnow

There is an absolute upper limit for the growth of public debt, which is given by public_debt times avg_interest ≦wage_income. Economic problems, though, start much earlier.

For details, see ⇒
From the debt economy to the gift economy: how America…
— AXEC (@EgmontHandtke) January 14, 2026

Occasional X: Clueless economists / Employment (XXIV)

#Economics #AllYouNeedToKnow

The problem is that minimum wages have to be implemented across all firms at the same time in order to avoid cross-over exploitation. In this case, total employment increases.

If the minimum wage in one firm goes down, employment in this firm tends… pic.twitter.com/YsigWkEZ4o
— AXEC (@EgmontHandtke) January 14, 2026

Occasional X: Clueless economists / Money (LXXXII)

#Economics #AllYouNeedToKnow

The problem is not so much the 'Political Pressure on the Fed' (Thomas Drechsel) but that economic theory in general, and monetary theory in particular, is provably false.

For the consistent theory, see the working paper
The Dark-Matter Theory of…
— AXEC (@EgmontHandtke) January 14, 2026

Occasional X: The futile attempt to recycle Keynesianism (XCIII)

#Economics #AllYouNeedToKnow

“In the long run we are all dead.” (J. M. Keynes)

That is a psycho-social-philosophical triviality, but not economics.

Keynes, too, misunderstood the concept of profit because he was too stupid for elementary algebra. ⇓

The representative… pic.twitter.com/wuGQOX6Vxl
— AXEC (@EgmontHandtke) January 14, 2026

January 13, 2026

Occasional X: Clueless economists / Money (LXXXI)

#Economics #AllYouNeedToKnow

“Powell and his allies are using the language of 'independence' to turn a basic oversight dispute into a political morality play, and it looks increasingly like an attempt to delegitimize any legal scrutiny of the Fed. This has all the elements of a…
— AXEC (@EgmontHandtke) January 13, 2026

Occasional X: Clueless economists / Money (LXXX)

#Economics #AllYouNeedToKnow

“The attraction of monetarism was not its intellectual simplicity inflation is a matter of the money supply, but that it elevated the fear to the unique position which could not be justified by the experience of numerous countries who habitually… pic.twitter.com/8r292jADmS
— AXEC (@EgmontHandtke) January 13, 2026

Occasional X: Economic policy guidance has never had valid scientific foundations (XXII)

#Economics #AllYouNeedToKnow

“If conquest constitutes a natural right on the part of the few, the many have only to gather sufficient strength in order to acquire the natural right of reconquering what has been taken from them.” (Karl Marx, quoted by Relearning Economics)… pic.twitter.com/howXTeBpWa
— AXEC (@EgmontHandtke) January 13, 2026

January 12, 2026

Occasional X: There is an absolute limit to the growth of public debt (II)

#Economics #AllYouNeedToKnow

“Is there any economic limit to the deficit? I know of course about the political limits. People say you can't increase the national debt too fast or too much.” (John F. Kennedy, according to James Tobin)

“JFK was assassinated shortly after this…
— AXEC (@EgmontHandtke) January 12, 2026

Occasional X: The foul spirit of political economics (CLXXXVII)

#Economics #AllYouNeedToKnow

“Adam Smith- was he really the father of Economics??!!” (The Economist)

No, he was not an original thinker, not a scientist, not an economist; he was a populist moralizer. ⇓

The history of economic thought is the history of scientific failure. The… pic.twitter.com/InEQfR83Js
— AXEC (@EgmontHandtke) January 12, 2026

Also at The Data of Everything.

Occasional X: The foul spirit of political economics (CLXXXVI)

#Economics #AllYouNeedToKnow

“To make his theory more attractive and effective, Keynes called it The General Theory.” (Friedrich Hayek)

Obviously, this is not economics but blather. It doesn't matter if Keynes was a wonderful personality or a jerk. Economics and psychology are… pic.twitter.com/gkrONWPf44
— AXEC (@EgmontHandtke) January 12, 2026

Occasional X: Clueless economists / Profit (CXXVI)

#Economics #AllYouNeedToKnow

“Sound economic reasoning is an enormously powerful tool for understanding both the economy and society.” (Per Bylund, HOW TO THINK ABOUT THE ECONOMY)

1. Load down the book
2. Search for profit
3. You get one result for profitable on p. 114.
4.…
— AXEC (@EgmontHandtke) January 12, 2026

Occasional X: How it works (CDXXIX)

#Economics #AllYouNeedToKnow

“I served under 4 administrations (Republican and Democratic) and always performed my duties with a focus not on policy, but on minimizing inflation and maximizing jobs.” (Jerome Powell quoted by Lord Bebo)

The Central Bank's main task is to…
— AXEC (@EgmontHandtke) January 12, 2026

Also at James Young.

Occasional X: Economics is failed/fake science (V)

#Economics #AllYouNeedToKnow

“It's time again for the updated Larry Summers quad-axis inflation graph.” (Florian Ederer)

'It's time for the reminder that legacy economics, Harvard, Larry Summers, and Florian Ederer are all examples of junkonomics.'

The major approaches… pic.twitter.com/6NqAKpkaqS
— AXEC (@EgmontHandtke) January 12, 2026

January 11, 2026

Occasional X: Clueless economists / Employment (XXIII)

#Economics #AllYouNeedToKnow

“The New York Times, much like the economics profession, has updated its priors based on evidence on what happens when the minimum wage goes up.” (Arin Dube)

If the minimum wage in one firm goes down, employment in this firm tends to increase. This… pic.twitter.com/uPGAuPWEqb
— AXEC (@EgmontHandtke) January 11, 2026

January 10, 2026

Occasional X: The futile attempt to recycle Marx (L)

#Economics #AllYouNeedToKnow

“Time creates surplus. Exchange only realizes it.” (Beyan.D)

Because Marx got the foundational magnitude of economics—profit—wrong, his communicative contribution reduces to psycho-social-political-philosophical blather.

Surplus is a real…
— AXEC (@EgmontHandtke) January 10, 2026

Occasional X: Paradigm Shift (XCVII)

#Economics #AllYouNeedToKnow

“Economist: 'Assume full employment, perfect competition, and no money.'” (Relearning Economics)

It's clear that there's been a mistake in the assumptions, and it cannot be rectified with math. What is needed is a Paradigm Shift.

Economics has… pic.twitter.com/Gu7tIKDglZ
— AXEC (@EgmontHandtke) January 10, 2026

Occasional X: Clueless economists / Profit (CXXV)

#Economics #AllYouNeedToKnow

“Profit is better understood as a verb, not as a noun. It is the gain from activity, the motivation for undertaking it and what keeps supporting it (until it doesn't) while underway. Seen as merely the 'residual' after the (f)act, it is only… pic.twitter.com/4cjby9S4pD
— AXEC (@EgmontHandtke) January 10, 2026

Occasional X: The futile attempt to recycle Austrianism (XLXIX)

#Economics #AllYouNeedToKnow

“Responsibility, to be effective, must be individual responsibility.” (Friedrich Hayek)

Whether this is true or not is a question of sociology/psychology, not economics. Economics is about how the economic system works.

The major approaches…
— AXEC (@EgmontHandtke) January 10, 2026

Occasional X: The futile attempt to recycle Marx (XLIX)

#Economics #AllYouNeedToKnow

“You don’t need to read Marx to reject him, because his system collapses at the premise level, not the footnotes.” (Rock Chartrand)

Because Marx got the foundational magnitude of economics—profit—wrong, his communicative contribution reduces to…
— AXEC (@EgmontHandtke) January 10, 2026

January 9, 2026

Occasional X: Economics is scientifically worthless, so are its prizes (II)

#Economics #FailedFakeScience

“Javier Milei receiving the Milton Friedman International Prize in Italy.” (Milton Friedman Quotes)

Milton Friedman never understood profit, and by consequence, how the economic system works. A Friedman Prize has no scientific meaning. It is a… pic.twitter.com/rYJ9wSXfIk
— AXEC (@EgmontHandtke) January 9, 2026

Occasional X: Clueless economists / Profit (CXXIV)

#Economics #AllYouNeedToKnow

“Corporate profit margins are nearly 20%. Double the 10% level that was seen in the 80s, 90s, and early 00s. What is going on?” (Eric Basmajian)

Amateurish question. President Trump is just following the Oligarchy's Prime Directive.

The free-market…
— AXEC (@EgmontHandtke) January 9, 2026

Occasional X: Economics and math ― they just can't get it together (VIII)

#Economics #AllYouNeedToKnow

“The miracle of the appropriateness of the language of mathematics for the formulation of the laws of physics is a wonderful gift which we neither understand nor deserve.” (Eugene Wigner)

This led Velupillai to wonder about ‘The Unreasonable… pic.twitter.com/nXub16RYtc
— AXEC (@EgmontHandtke) January 9, 2026

Occasional X: Economics still lacks correct macrofoundations (XXXIV)

#Economics #AllYouNeedToKnow

“Overall assessment: For educators, this paper is a valuable bridge between post-Keynesian and mainstream macro, offering a coherent, empirically documented rationale to foreground balance-sheet constraints, endogenous money, and credit impulses in… pic.twitter.com/LBCle0kcTQ
— AXEC (@EgmontHandtke) January 9, 2026

Occasional X: Clueless economists / Science (CCXL)

#Economics #AllYouNeedToKnow

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/4EBAqvr7CA
— AXEC (@EgmontHandtke) January 9, 2026

January 8, 2026

Occasional X: Clueless economists / Science (CCXXXIX)

#Economics #AllYouNeedToKnow

“Most Quantitative Social Science Research is too Vague to Even Be Wrong” (Rex Douglass)

Economists do not really want to get out of the 'thickness of confusion' (Suppes) because wish-wash and inconclusiveness help passably against outright…
— AXEC (@EgmontHandtke) January 8, 2026

Occasional X: Clueless economists / Science (CCXXXVIII)

#Economics #AllYouNeedToKnow

“Did you know that one of the first incentivized experiments showing myopia and time inconsistency—hallmarks of behavioral economics—was demonstrated with pigeons as subjects?” (Alex Imas)

Economics has defined itself as a social science and… pic.twitter.com/ZVEqQ90iOg
— AXEC (@EgmontHandtke) January 8, 2026

Occasional X: Clueless economists / Science (CCXXXVII)

#Economics #AllYouNeedToKnow

“Years ago—back when people actually went to blogs—DrGeneCallahan had a post titled something like 'A short proof of God's existence.' And he just wrote Euler's identity. At the time I thought it was hyperbole, but now that I know more math, I think…
— AXEC (@EgmontHandtke) January 8, 2026

January 7, 2026

Occasional X: The futile attempt to recycle Marx (XLXIII)

#Economics #AllYouNeedToKnow

“Marxist structuralist diagram of functions (Althusser) vs Marxist humanist diagram (Bourbaki)” (rea)

Because Marx got the pivotal magnitude of economics —profit— wrong, French Marxists have never been more than psycho-social blatherers.…
— AXEC (@EgmontHandtke) January 7, 2026

Occasional X: Clueless economists / Employment (XXII)

#Economics #AllYouNeedToKnow

“In a free market, there is no lasting involuntary unemployment.” (Per Bylund)

“Labor is the most scarce of all primary means of production because it is in this restricted sense nonspecific and because every variety of production requires the… pic.twitter.com/XXICoI9luA
— AXEC (@EgmontHandtke) January 7, 2026

Occasional X: Clueless economists / Science (CCXXXVI)

#Economics #AllYouNeedToKnow

“Let’s be real: Academia is dead. The peer review system has devolved into a zero-sum game of gatekeeping.” (Chayenne Zhao)

Economics claims to be science, but it is NOT. The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and… pic.twitter.com/2zmptwQlGY
— AXEC (@EgmontHandtke) January 7, 2026

Occasional X: The futile attempt to recycle Kalecki (XII)

#Economics #AllYouNeedToKnow

It has long been known that Kalecki got macroeconomics wrong. For details, see

Heterodoxy, too, is proto-scientific garbagehttps://t.co/pk7oxbuJ1Z
— AXEC (@EgmontHandtke) January 7, 2026

Occasional X: Clueless economists / Science (CCXXXV)

#Economics #AllYouNeedToKnow

“I think most of you haven’t internalized how devastating Philip Tetlock’s results were in the early 2000s: on average, subject-matter experts didn’t beat random guessing—and did worse than simple heuristics.” (Werner Zagrebbi)

Every economist could… pic.twitter.com/azh90RPPJG
— AXEC (@EgmontHandtke) January 7, 2026

January 6, 2026

Occasional X: How it works (CDXXXIII)

#Economics #AllYouNeedToKnow

“Dollars are loaned into existence, and they are destroyed by paying off debt. This is why the national debt will never decrease.” (Joseph Brown)

That's a self-confusing mixture of true and false. Joseph Brown does not understand how the monetary… pic.twitter.com/ZAbzl2f9IR
— AXEC (@EgmontHandtke) January 6, 2026

January 5, 2026

Occasional X: The futile attempt to recycle Hayek (XLX)

#Economics #AllYouNeedToKnow

“A good scientist is essentially a humble person.” (Friedrich Hayek)

Modesty is the hypocrisy of a failed scientist.

Economics is still not science. The major approaches (Walrasianism, Keynesianism, Marxianism, Austrianism, and their derivatives)…
— AXEC (@EgmontHandtke) January 5, 2026

Occasional X: Clueless economists / Science (CCXXXIV)

#Economics #AllYouNeedToKnow

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/z4B85sR39o
— AXEC (@EgmontHandtke) January 5, 2026

Occasional X: How it works (CDXXXII)

#Economics #AllYouNeedToKnow

“The national debt officially surged +$2.3 trillion last year, equal to +$6.3 BILLION per day. At this pace, total US debt will rise to $40.0 trillion as early as August.” (Kobeissi Letter)

President Trump is just following the Oligarchy's Prime…
— AXEC (@EgmontHandtke) January 5, 2026

January 4, 2026

Occasional X: Clueless economists / Science (CCXXXIII)

#Economics #AllYouNeedToKnow

“Hot take: without peer review, there is no science.” (Kareem Carr)

The first thing to know for an academic is: economics ― understood as science ― is about knowledge (episteme) and NOT about opinion (doxa).

“In order to tell the politicians and… pic.twitter.com/EzOY1ZkyO0
— AXEC (@EgmontHandtke) January 4, 2026

Occasional X: Clueless economists / Science (CCXXXII)

#Economics #AllYouNeedToKnow

“This article presents a good history of the debates on Capital and humanism that occurred over the ‘60s and ‘70s in France, England, and Germany, and gives a good sense of what the conceptual stakes were. ” (Judith C.)

Marx/Engels called their…
— AXEC (@EgmontHandtke) January 4, 2026

January 3, 2026

Occasional X: Economists still get saving/dissaving and loss/profit wrong (V)

#Economics #AllYouNeedToKnow

“In the modern economy, most capital is created by bank credit, not prior saving, …” (James Young)

True. It is NOT the case that saving governs investment or that investment governs saving or that both are equal by definition, as Keynes said. ⇓… pic.twitter.com/4AP0mHWh8d
— AXEC (@EgmontHandtke) January 3, 2026

Occasional X: Clueless economists / Science (CCXXXI)

#Economics #AllYouNeedToKnow

“Economist Peter Boettke explains the importance of culture to growth and innovation.” (Human Progress)

Ultimately, science explains growth and human progress. Economics is still not science. Therefore, it never contributed to material and cultural… pic.twitter.com/914rsk00lc
— AXEC (@EgmontHandtke) January 3, 2026

Occasional X: Clueless economists / Phillips Curve (XX)

#Economics #AllYouNeedToKnow

“The correlation between credit growth and unemployment in the US from 1990-2012 is -0.93. That's not a typo.” (Steve Keen)

From the correct macroeconomic axiom set follows the correct Phillips Curve. ⇓ It contains the original curve as a special… pic.twitter.com/TdiMSBg1y2
— AXEC (@EgmontHandtke) January 3, 2026

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

For all who don't understand MMT.

The MMT error/fraud lies in the word non-government sector. There is NO such thing as the “non-government sector”; there are TWO sectors, the business sector and the household sector. The counterpart of the public deficit is not the saving of…
— AXEC (@EgmontHandtke) January 3, 2026

January 2, 2026

Occasional X: The futile attempt to recycle Milton Friedman (XLVIII)

#Economics #AllYouNeedToKnow

“The period of economic freedom was a period in which the differences in income between the rich and the poor were getting smaller... Government is a source of differences in income, of special privilege, of monopoly.” (Milton Friedman)

Milton…
— AXEC (@EgmontHandtke) January 2, 2026

Occasional X: How it works (CDXXXI)

#Economics #AllYouNeedToKnow

“You pay high taxes only to uphold the illusion that you are funding the Government… the Government is funded by money printing.” (Nayib Bukele)

No! Mr. Bukele never understood profit and, by consequence, how the economic system works. He is a…
— AXEC (@EgmontHandtke) January 2, 2026

Occasional X: Clueless economists / Entrepreneur (I)

#Economics #AllYouNeedToKnow

One of the central figures of economics—Austrianism in particular—is the entrepreneur.

“In the 20th century, the understanding of entrepreneurship owes much to the work of economist Joseph Schumpeter in the 1930s and other Austrian economists such…
— AXEC (@EgmontHandtke) January 2, 2026

Occasional X: Clueless economists / Profit (CXXIII)

#Economics #AllYouNeedToKnow

The 3-sector Profit Law Qm≡(G−T)+(I−Sm)+Yd implies PublicDeficit-Is-PrivateProfit. If tax T goes to a minimum/zero and spending G goes to a maximum, macroeconomic profit Qm goes to a maximum. It is the deficit (G−T) that (co-)determines how big…
— AXEC (@EgmontHandtke) January 2, 2026

Occasional X: Clueless economists / Science (CCXXX)

#Economics #AllYouNeedToKnow

“I don’t think a single Nobel laureate treated their occupation as 'just a job'. Academia is more like sports where you need, apart from raw talent, an almost obsessive attitude.” (Pontus Rendahl)

Science is neither a public service, nor a… pic.twitter.com/ad7ZAb5oiJ
— AXEC (@EgmontHandtke) January 2, 2026

Occasional X: Clueless economists / Science (CCXXIX)

#Economics #AllYouNeedToKnow

“Science must be viewed as a calling (not just a job) because it’s a public service, funded by the generosity of others.” (Jeffrey West)

Science is not a public service, nor is it a philanthropy, nor a billionaire-controlled business.

US academia…
— AXEC (@EgmontHandtke) January 2, 2026

***

Twitter/X Jan 5, 2026 Alexandria — science and organization

January 1, 2026

Occasional X: Clueless economists / Science (CCXXVIII)

#Economics #AllYouNeedToKnow

“Academia isn't a calling—it's a job. … Clock in, do great work, clock out.” (ScienceNews, Laurel Raffington, quoted by Nicholas Decker)

US academia was once committed to science in the European tradition. Then it transformed into a business.…
— AXEC (@EgmontHandtke) January 1, 2026

Occasional X: Clueless economists / Science (CCXXVII)

#Economics #AllYouNeedToKnow

“Why macro never had a credibility revolution, and why that's not a bad thing.” (Carlos Chavez)

Because the representative economist has always been scientifically incompetent.

For 200+ years, economics has claimed to be a science. But it still is… pic.twitter.com/a5uXX4EPdr
— AXEC (@EgmontHandtke) January 1, 2026

Occasional X: Clueless economists / Phillips Curve (XIX)

#Economics #AllYouNeedToKnow

The axiomatically correct Phillips Curve is given below ⇓. It contains the original curve as a special case. The rest is blather.

For details, see
Links on the Phillips Curvehttps://t.co/pDHOfuFfrr pic.twitter.com/S6LwhSKZMY
— AXEC (@EgmontHandtke) January 1, 2026

Occasional X: Clueless economists / Science (CCXXVI)

#Economics #AllYouNeedToKnow

“Keep your eye on one thing and one thing only, how much government is spending, because that’s the true tax.” (Milton Friedman)

Milton Friedman was an economist, so he should have known how the economy works. But he didn't.

The free-market economy…
— AXEC (@EgmontHandtke) January 1, 2026

Occasional X: Clueless economists / Profit (CXXII)

#Economics #AllYouNeedToKnow

“Sen. John Kennedy says, 'Every penny the government takes is a penny that people can't spend on their own lives or in the private sector to create jobs.'” (Thomas Sowell Quotes)

It seems that Senator Kennedy is not very clever.

Taxes as such are… pic.twitter.com/Dnf9wTnVmr
— AXEC (@EgmontHandtke) January 1, 2026

Occasional X: Clueless economists / Profit (CXXI)

#Economics #AllYouNeedToKnow

The 3-sector Profit Law Qm≡(G−T)+(I−Sm)+Yd implies PublicDeficit-Is-PrivateProfit. If tax T goes to a minimum and spending G goes to a maximum, macroeconomic profit Qm goes to a maximum. It is the deficit (G−T) that determines how big the free… pic.twitter.com/MV90PRv1mb
— AXEC (@EgmontHandtke) January 1, 2026

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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.