tag:blogger.com,1999:blog-2761684730989137546.post4436808286280794184..comments2024-03-29T02:19:19.866-04:00Comments on Mike Norman Economics: Frank Li — John Maynard Keynes: The Best Economist Since 1899?mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2761684730989137546.post-50661907816438806532018-08-29T19:03:14.561-04:002018-08-29T19:03:14.561-04:00“ economists who, to recall, are known to be scien...“ economists who, to recall, are known to be scientifically incompetent ”<br /><br />They’re not trained in science they train (typically) under an Arts methodology... <br /><br />Very few schools award a Science Degree in Economics...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-43721845743186376842018-08-29T15:55:37.902-04:002018-08-29T15:55:37.902-04:00China does NOT need Keynesianism
Comment on Frank ...China does NOT need Keynesianism<br />Comment on Frank Li on ‘John Maynard Keynes: The Best Economist Since 1899?’<br /><br />Frank Li argues: “Keynesian economics makes a world of sense today. Two main reasons: It is a valid theory, developed on top of the past economic theories, including both Adam Smith’s and Karl Marx’s. It was developed mostly in Britain, a great country with a long history, without an excessive delusion of exceptionalism.”<br /><br />Let us put some points straight:<br />• The formal basis of the General Theory is given with “Income = value of output = consumption + investment. Saving = income − consumption. Therefore saving = investment.” (p. 63)#1<br /><br />• This proposition is conceptually/logically false because Keynes NEVER came to grips with profit.#2 This is self-defeating for an economist.<br /><br />• Because the foundational economic concepts profit/income/saving are miss-specified, the whole theoretical superstructure of Keynesianism in ALL its variants is false.#3<br /><br />• Keynes messed up the inexorable paradigm shift from microfoundations to macrofoundations.#4<br /><br />• Keynes was an agenda pusher, NOT a scientist. Keynesian policy guidance has NO valid scientific foundations and in effect enables the self-alimentation of the oligarchy.#5<br /><br />• Keynes’ policy proposals are nothing more than educated common sense and have NO valid scientific foundations. They are superior to Walrasian/Marshallian economics, though, but only because it is impossible to be worse.<br /><br />• The extremely unequal distribution of income and financial wealth is the direct result of public deficit spending over the last decennia. The macroeconomic Profit Law says Public Deficit = Private Profit.#6<br /><br />• After-Keynesians have not detected/rectified Keynes’ blunders to this day. Macroeconomics ― profit and employment theory, in particular ― is materially/formally inconsistent.#7<br /><br />• Keynesianism is scientifically worthless.<br /><br />Frank Li summarizes: “(1) the free market cannot possibly be all self-functioning and self-stabilizing, and (2) a critical and indispensable ‘balancing’ force is the government, especially in time of crisis.” This is only a great insight to economists who, to recall, are known to be scientifically incompetent since the founding fathers. Keynes stood firmly in this tradition of cargo cult science.#8<br /><br />China can do better without Smith, Marx, and Keynes. #9<br /><br />Egmont Kakarot-Handtke<br /><br />#1 Keynes and the logical brilliance of Bedlam<br />https://axecorg.blogspot.com/2015/10/keynes-and-logical-brilliance-of-bedlam.html<br /><br />#2 How Keynes got macro wrong and Allais got it right<br />https://axecorg.blogspot.com/2016/09/how-keynes-got-macro-wrong-and-allais.html<br /><br />#3 Forget Keynes<br />https://axecorg.blogspot.de/2018/02/forget-keynes.html<br /><br />#4 Finalizing the Keynesian Revolution<br />http://axecorg.blogspot.de/2016/03/finalizing-keynesian-revolution.html<br /><br />#5 Who or what exactly did Keynes save?<br />http://axecorg.blogspot.de/2016/11/who-or-what-exactly-did-keynes-save.html<br /><br />#6 Keynes, Lerner, MMT, Trump and exploding profit<br />https://axecorg.blogspot.com/2017/12/keynes-lerner-mmt-trump-and-exploding.html<br /><br />#7 Post Keynesianism, science, and universal idiocy<br />https://axecorg.blogspot.de/2016/08/post-keynesianism-science-and-universal.html<br /><br />#8 Marshall and the Cambridge School of plain economic gibberish<br />https://axecorg.blogspot.com/2016/09/marshall-and-cambridge-school-of-plain.html<br /><br />#9 For details of the big picture see cross-references Keynesianism<br />http://axecorg.blogspot.com/2016/09/keynesianism-cross-references.htmlAXEC / E.K-Hhttps://www.blogger.com/profile/10402274109039114416noreply@blogger.com