AXEC: New Foundations of Economics: Search results for title:democracy

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May 31, 2022

Occasional Tweets: 2500+ ys after Aristotle defined things, economists still try to sell Oligarchy as Democracy

The correct designation for the current political system is #Oligarchy and NOT #Democracy. It thrives on #DeficitSpendingMoneyCreation = growing #PublicDebt. The #ProfitLaw implies #PublicDeficitIsPrivateProfit. These #FreeLunches are used to capture the State’s institutions. pic.twitter.com/fjY3KGc6By
— E.K-H (@AXECorg) May 31, 2022

December 9, 2022

Occasional Tweets: Economics, Oligarchy, Democracy and fake legitimacy

The correct designation for the current political system is #Oligarchy. It thrives on #DeficitSpendingMoneyCreation = growing #PublicDebt. The #ProfitLaw implies #PublicDeficitIsPrivateProfit. So, #Democracy is a fiction/cover for the Oligarchy's self-alimentation with #Profit. pic.twitter.com/SVRRn66O5N
— E.K-H (@AXECorg) December 9, 2022

January 25, 2024

Occasional Xs: How economists fight for the future of WeThePeople / Democracy

The correct term for the GER polity is NOT #Democracy but #Oligarchy. It thrives on #DeficitSpendingMoneyCreation. The #ProfitLaw implies #PublicDeficitIsPrivateProfit (i.e. #PrivateFinancialWealth ≈ #PublicDebt) So everywhere, there is a lot of #Lobbying against a #DebtCeiling. pic.twitter.com/E72XRmcVyt
— E.K-H (@AXECorg) January 25, 2024

May 15, 2022

Occasional Tweets: Liberal Democracy is the flag in which the oligarchy wraps itself

The current political system is an #Oligarchy. Congress is an integral part of it. The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. Thus, #DeficitSpendingMoneyCreation (= growing public debt) secures the systemic self-alimentation with #Profit. pic.twitter.com/1Ml44PNypB
— E.K-H (@AXECorg) May 15, 2022

July 24, 2022

Occasional Tweets: Don't worry about Democracy, it is long gone

The current political system is an #Oligarchy. Congress/Treasury/Fed are an integral part of it. The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. So, #DeficitSpendingMoneyCreation (=growing public debt) secures the self-alimentation with #Profit. pic.twitter.com/bA0jbK1rVs
— E.K-H (@AXECorg) July 24, 2022

May 22, 2019

You know you are in the political Circus Maximus when economists talk about Democracy/Liberty/Freedom

Comment on Warren Mosler on ‘Entweder wir glauben an die Demokratie oder nicht; Either we believe in Democracy or not’*

Blog-Reference and Blog-Reference on May 23

Economics is a science and the task of economists is to explain how the monetary economy works. The task of economists is NOT to push a political agenda. This should be pretty obvious. From an astrophysicist, we expect that he explains how the universe works and we are disappointed when he tells us after years of research that he has come to the conclusion that Democrats are corrupt and stupid and Republicans are stupid and corrupt. This does NOT count as scientific insight.

Economics claims to be a science but does not live up to the definition of science. The most striking feature of economics is schizophrenia: there is political economics and theoretical economics. The main differences are: (i) The goal of political economics is to successfully push an agenda, the goal of theoretical economics is to successfully explain how the actual economy works. (ii) In political economics anything goes; in theoretical economics, the scientific standards of material and formal consistency are observed. Theoretical economics (= science) had been hijacked from the very beginning by political economists (= agenda pushers). Political economics has produced NOTHING of scientific value in the last 200+ years. The major approaches ― Walrasianism, Keynesianism, Marxianism, Austrianism, MMT ― are mutually contradictory, axiomatically false, and materially/formally inconsistent.#1

MMT is refuted on all counts.#2 And Warren Mosler’s story that fiat money has to be spent by the state into the economy is false. Money has to be lent into the economy in order to enable the business sector to pay the wage income which in turn is then spent on the consumption good output of the business sector.#3

The problem with MMT is that it is built upon a provably false sectoral balances equation. Now, it is known from methodology that when the foundations are false the whole analytical superstructure is false and the whole approach is scientifically worthless.

However, in the political sphere, it does not matter at all whether a theory is true or false. What matters is the propagandistic use-value and not the scientific truth value.

The macroeconomic Profit Law entails Public Deficit = Private Profit which means that the Oligarchy’s financial wealth and public debt (currently $22 trillion) grow in lockstep. Hence the MMTers’ arguments for permanent deficit-spending/money-creation have a tangible use-value for the Oligarchy. Warren Mosler’s claim that MMT is good for Democracy is a plain political fraud. MMTers stand firmly in the tradition of fake scientists and politically useful idiots Adam Smith and Karl Marx. The major approaches ― Walrasianism, Keynesianism, Marxianism, Austrianism, MMT ― are all proto-scientific garbage and political fraud.

Egmont Kakarot-Handtke

* Zeit Online
#1 For details of the big picture see cross-references Political Economics/Stupidity/Corruption
#2 For details of the big picture see cross-references MMT
#3 MMT: fundamentally false

Related 'MMT undermines democracy'.

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Twitter May 26

August 7, 2025

Occasional X: Clueless economists / Oligarchy-Democracy (II)

#Economics #AllYouNeedToKnow

“To avoid the semantic issues: I think of democracy as a system of checks and balances that tries to reflect the opinions of all, and find the best compromise. I think of autocracy as the destruction of such checks and balances. … I shall freely…
— AXEC (@EgmontHandtke) August 7, 2025

December 17, 2021

Occasional Tweets: There is much confusion about democracy and oligarchy

The correct term for the political system you care about is #Oligarchy and NOT #Democracy. The macroeconomic #ProfitLaw implies #PublicDeficitIsPrivateProfit. Thus, #DeficitSpendingMoneyCreation i.e. a growing #PublicDebt secures the permanent self-alimentation of the #Oligarchy. pic.twitter.com/ICv6JCxaUS
— E.K-H (@AXECorg) December 17, 2021

September 12, 2022

Occasional Tweets: WeThePeople do not bear the costs of democracy but of oligarchy

The US/EUR political system is an #Oligarchy. Parliament/Treasury/CentralBank/Business are integral parts of it. The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. The permanent growth of #PublicDebt generates the #Cash to keep the system running. pic.twitter.com/b4yIfPiMDE
— E.K-H (@AXECorg) September 12, 2022

March 15, 2024

Occasional Xs: Clueless economists / Oligarchy-Democracy (I)

#Capitalism

The US polity is an Oligarchy with Congress/Treasury/Fed/BigBusiness as integral parts. Analogous for EUR, UK, CAN, etc. The #ProfitLaw ⇓ implies #PublicDeficitIsPrivateProfit. Macroeconomic #Profit is in the main produced by #DeficitSpendingMoneyCreation i.e. the… pic.twitter.com/Pjmiypgm2m
— E.K-H (@AXECorg) March 15, 2024

April 20, 2021

Occasional Tweets: Is MMT the spearhead of Democracy or Oligarchy?

#Economics #MMT #BadScienceBadPolicyBadPeople

MMT undermines democracyhttps://t.co/va3g4QuMEv
— E.K-H (@AXECorg) April 20, 2021

For more about economics and democracy, see AXECquery.

For more about economics and oligarchy, see AXECquery.

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AXEC142b

April 18, 2023

Occasional Tweets: The difference between democracy and oligarchy is not so hard to figure out

#Econ

The US political system is an #Oligarchy. Congress/Treasury/Fed/BigBusiness are integral parts of it. The 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd implies #PublicDeficitIsPrivateProfit. The growth of #PublicDebt generates the #Profit/#Interest to keep the #System running.
— E.K-H (@AXECorg) April 18, 2023

February 17, 2022

Occasional Tweets: The futile attempt of economists to hype themselves as fighters for democracy

Simon Wren-Lewis says “No one should be impartial when it comes to defending democracy”. The fact is that he was extremely “partial” when it was about bringing down the leader of UK Labour. His anti-democratic agenda-pushing “cannot be forgotten”. ⇒https://t.co/b3FqEEdgJH pic.twitter.com/EXd0SChGqS
— E.K-H (@AXECorg) February 17, 2022

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

For more about Simon Wren-Lewis see AXECquery.

February 15, 2022

Occasional Tweets: Democracy or Oligarchy ― which side are the fake scientists from the faculty of economics on?

The correct name of the political system is #Oligarchy. Parlaments are an integral part of it. The 3-sector #ProfitLaw Q≡(G−T)+(I−S) implies #PublicDeficitIsPrivateProfit. #DeficitSpendingMoneyCreation secures systemic self-alimentation with #Profit. #Economists are complicit. pic.twitter.com/bxRWGdOFU2
— E.K-H (@AXECorg) February 15, 2022

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

For more about Simon Wren-Lewis see AXECquery.

July 29, 2019

MMT undermines democracy

Comment on Lars Syll on ‘Everything you want to know about MMT’

Blog-Reference and Blog-Reference

Lars Syll maintains: “One of the positive contributions of MMT, especially from a european point of view, is that it makes it transparently clear why the euro-experiment has been such a monumental disaster.” and “The problems ― created to a large extent by the euro ― may not only endanger our economies, but also our democracy itself.”

This is actually NOT the case for the simple reason that MMT is a scientifically failed approach just like Walrasianism, Keynesianism, Marxianism, Austrianism.#1, #2 The major approaches are mutually contradictory, axiomatically false, materially/formally inconsistent, and all got profit ― the foundational concept of the subject matter ― wrong. More specifically, the foundational MMT sectoral balances equation (I−S)+(G−T)+(X−M)=0 is provably false. The most important balance ― the profit of the business sector ― is missing. It is pretty obvious that a defective economic theory cannot explain anything.

Lars Syll is an incompetent scientist who has not realized that macroeconomics is ill-defined from Keynes onward to MMT. More specifically, he is too stupid to understand the elementary mathematics that underlies macroeconomics.#3

The macroeconomic Profit Law entails Public Deficit = Private Profit which means that the Oligarchy’s financial wealth and public debt grow in lockstep. The very characteristic of late Capitalism is that the so-called free-market economy is on the full life support of the state. Profit is in the main produced by the government through deficit-spending/money-creation. The Oligarchy, in turn, uses the opulent free lunches to corrupt what remains of the state’s legislative, executive, and judiciary institutions.

Clearly, the MMT policy of permanent deficit-spending/money-creation benefits the Oligarchy and not WeThePeople.#4 Lars Syll’s assertion that MMT is good for both economy and democracy is a continuation of economists’ long tradition of political fraud.#5

Egmont Kakarot-Handtke

#1 MMT: fundamentally false
#2 For the full-spectrum refutation of MMT see cross-references MMT
#3 Lars Syll ― a particularly stupid/corrupt fake scientist
#4 Is MMT good for WeThePeople or for the Oligarchy?
#5 You know you are in the political Circus Maximus when economists talk about Democracy/Liberty/Freedom

Related 'Trump and MMT: Make profits great again' and 'The real trouble with Capitalism: stupid/corrupt economists' and 'MMT: A new myth for WeThePeople' and 'Economists betray WeThePeople'.

January 4, 2022

Occasional Tweets: Economists habitually confuse Democracy and Oligarchy

The correct term for the current political system is #Oligarchy. The 3-sector #ProfitLaw Q≡(G−T)+(I−S) implies #PublicDeficitIsPrivateProfit. #DeficitSpendingMoneyCreation secures the self-alimentation of the #Oligarchy with #Profit/#Interest which is used for #StateCapture. pic.twitter.com/DirBbCffcY
— E.K-H (@AXECorg) January 4, 2022

March 16, 2021

Occasional Tweets: MMT undermines Democracy

#MMT #BadScienceBadPolicyBadPeople

MMT undermines democracyhttps://t.co/va3g4QuMEv
— E.K-H (@AXECorg) March 15, 2021

September 29, 2022

Occasional Tweets: Economists celebrate social-democratic Chancellor for exploding macroeconomic profit

This is NOT a great achievement of the #Bundesregierung. #DeficitSpendingMoneyCreation is the simplest trick from the economic #BagOfTricks. It does not solve any real problems but bc of the 3-sector #ProfitLaw Q≡(G−T)+(I−S)+Yd it delivers a #FreeLunch for the #Oligarchy. pic.twitter.com/HuJ3ChnMfp
— E.K-H (@AXECorg) September 29, 2022

September 27, 2022

Occasional Tweets: Economics ― the use of fake science in a democratic society

#Walrasianism, #Keynesianism, #Marxianism, #Austrianism, #MMT are axiomatically false & materially/formally inconsistent. Therefore, economic policy guidance NEVER has had sound scientific foundations. #Economists are just #Clowns / #UsefulIdiots in the political #CircusMaximus. pic.twitter.com/RefR8LGUMn
— E.K-H (@AXECorg) September 27, 2022

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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.