tag:blogger.com,1999:blog-2761684730989137546.post2422994889579948536..comments2024-03-29T07:30:30.121-04:00Comments on Mike Norman Economics: Peter Cooper — MMT is Politically Open and Applicable to Both Capitalism and Socialismmike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-89068419003357074802019-02-10T10:50:10.864-05:002019-02-10T10:50:10.864-05:00Don't feed the troll.Don't feed the troll.Noah Wayhttps://www.blogger.com/profile/12012500819097539976noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-61044556247043985942019-02-10T03:58:43.341-05:002019-02-10T03:58:43.341-05:00Links on Peter Cooper’s ‘MMT is Politically Open a...Links on Peter Cooper’s ‘MMT is Politically Open and Applicable to Both Capitalism and Socialism’<br /><br />Peter Cooper asserts: “Modern Monetary Theory (MMT) offers an understanding of sovereign (and non-sovereign) currencies that is applicable to a wide range of economic systems, including capitalist and socialist ones. Irrespective of the personal political preferences of its proponents, the theoretical framework in itself is neutral on the appropriate balance between public sector and private sector activity, or the relative merits of capitalism and socialism.”<br /><br />This is not the case.<br /><br />In the course of an enumeration of MMT’s essential features, Peter Cooper mentions “Government deficit equals non-government surplus.” and explains “Basic accounting relationships apply irrespective of a society’s politics. Funds created through government spending that have not been taxed back are held as financial assets by non-government.”<br /><br />It is methodologically true, of course, that “Basic accounting relationships apply irrespective of a society’s politics”, however, MMT’s fundamental accounting relationship, i.e. the sectoral balances equation, is logically/mathematically false. Because of this fundamental blunder, the rest of MMT is scientifically worthless and neither applicable to capitalism or socialism.<br /><br />The correct accounting relationship states Public Deficit = Private Profit.<br /><br />For the proof see<br /><br />Rectification of MMT macro accounting<br />https://axecorg.blogspot.com/2017/09/rectification-of-mmt-macro-accounting.html<br /><br />What and where is profit?<br />https://axecorg.blogspot.com/2019/02/what-and-where-is-profit.html<br /><br />“But economics is not pure mathematics or logic” No, it is pure blather<br />https://axecorg.blogspot.com/2019/01/but-economics-is-not-pure-mathematics.html<br /><br />Stephanie Kelton’s legendary Plain-Sight-Ink-Trick<br />https://axecorg.blogspot.com/2019/01/stephanie-keltons-legendary-plain-sight.html<br /><br />Egmont Kakarot-HandtkeAXEC / E.K-Hhttps://www.blogger.com/profile/10402274109039114416noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-74616018629605599912019-02-09T18:05:10.689-05:002019-02-09T18:05:10.689-05:00"Modern Monetary Theory (MMT) offers an under..."Modern Monetary Theory (MMT) offers an understanding of sovereign (and non-sovereign) currencies that is applicable to a wide range of economic systems, including capitalist and socialist ones"<br /><br />I would say that the prospective part is indeed "political neutral", but the prescriptive is not.<br /><br />In my opinion, that is why it is so important to separate between those two parts.Andréhttps://www.blogger.com/profile/10935332922520483975noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-52663699223604264032019-02-09T16:45:12.536-05:002019-02-09T16:45:12.536-05:00This comment has been removed by the author.Ryan Harrishttps://www.blogger.com/profile/04815033054435303399noreply@blogger.com