Thursday, June 6, 2019

For MMT — Thomas Fazi and Bill Mitchell

Leading proponents of Modern Monetary Theory respond to Tribune's recent article on the topic, arguing that socialists should not be afraid to "seize the means of production of money."
Thomas Fazi and Bill Mitchell


Ralph Musgrave said...

"....socialists should not be afraid to seize the means of production of money." That's a joke. As Bill has pointed out over and over, socialists are too incompetent to do anything significantly different from the political right.

AXEC / E.K-H said...

For MMT = For the Oligarchy
Comment on Thomas Fazi/Bill Mitchell on ‘For MMT’*

Thomas Fazi/Bill Mitchell observe: “More surprising is the fact that MMT has also been the subject of fierce criticism by left-wing economists and commentators, such as Doug Henwood and Paul Mason. In the last year or so, the critiques of MMT have accelerated as its public profile has risen, partly due to Alexandria Ocasio-Cortez’s promotion of the theory in relation to her endorsement of a ‘Green New Deal’ (GND). This was to be expected: MMT not only threatens powerful vested interests in our societies, but also challenges the hegemony of mainstream macroeconomists who have been able to dominate the policy debate for decades using a series of linked myths about how our fiat monetary system operates and the capacities of currency-issuing governments within such a system.”

This is a case of either self-delusion or political fraud.

MMT does NOT “threatens powerful vested interests”, the MMT policy of deficit-spending/money-creation clearly benefits the Oligarchy because it increases macroeconomic profit according to the Profit Law which entails Public Deficit = Private Profit. Thus the Oligarchy’s financial wealth and public debt (currently $22 trillion) grow in lockstep. The so-called free market economy is already for a long time on the full life support of the State.#1

What MMT actually does is to put a social/green label on the public debt which has hitherto been accumulated mainly with military deficit spending. To put social/environmental deficit-spending on top of military deficit-spending does NOT threaten vested interests but is the best thing that can happen to the Oligarchy.

What MMT actually does is to discredit/undermine the parties that stand for more than a century for the interests of the working class. What Thomas Fazi/Bill Mitchell and other MMTers actually attempt is to drive a wedge between leadership and membership of the traditional Left by questioning economic competence:

• “But when they [criticisms of MMT] come out of Social Democratic or Labour political machines one realises that these economic spokespeople actually believe in the causalities that the mainstream macroeconomics framework asserts.” … “And then they wonder why they lose elections.”

• “MMT gives us the power to imagine truly transformational politics, without getting caught up in meaningless debates about whether we can ‘afford’ it or not. This is also why it is being attacked so fiercely. Not because of its theoretical foundations, but because of the range of economic and political possibilities that it opens up. The bottom line, however, is that MMT is here to stay. The Labour Party can choose to stick to an old neoliberal fiscal paradigm ― or it can join the revolution.”

MMT has zero scientific content, MMTers are scientifically incompetent,#2 MMT is refuted on all counts,#3 MMT policy guidance is political fraud in the interest of the Oligarchy.#4

The idea that creatures of polit-marketing like Alexandria Ocasio-Cortez and academic trolls like Thomas Fazi/Bill Mitchell are spearheading the revolutionary overthrow of vested interest is the latest joke in the ongoing reality show.

Egmont Kakarot-Handtke


#1 Keynes, Lerner, MMT, Trump and exploding profit

#2 Controlled demolition of MMT ― an exercise in elementary logic

#3 MMT is refuted on all counts, see cross-references MMT

#4 Links on MMT-Progressives push Wall Street’s agenda