A response to the Nov 17 thoughts of Simon Wren-Lewis
Simon Wren-Lewis has put up a very considered post on the Job Guarantee which deserves an appropriate response. I have been calling for Simon to write about the Job Guarantee for a very long time, and I’m grateful he has done so. It is a very good piece from an alternative point of view and I hope I can do it justice in this reply.Modern Money Matters
Thoughts about the Job Guarantee: A Reply
Neil Wilson
Some fatal flaws of MMT
ReplyDeleteComment on Simon Wren-Lewis on ‘Some thoughts about the Job Guarantee’
Simon Wren-Lewis summarizes: “But I am also fed up with policy makers implementing bad policies just because they sound good to those policy makers, so I want to subject any policy I intuitively like to rigorous analysis.”
Rigorous analysis of MMT shows the following
• MMT is based on Keynesian macro which is provably false since 80+ years,#1
• MMT profit theory is false,#2
• MMT employment theory is false.#3
False theory leads to false policy guidance.#4 MMT policy guidance has no sound scientific foundations. MMT policy proposals are social on the surface but in essence a wellness program for the one-percenters.#5, #6
Egmont Kakarot-Handtke
#1 How Keynes got macro wrong and Allais got it right
https://axecorg.blogspot.de/2016/09/how-keynes-got-macro-wrong-and-allais.html
#2 Rectification of MMT macro accounting
https://axecorg.blogspot.de/2017/09/rectification-of-mmt-macro-accounting.html
#3 Full employment through the price mechanism
https://axecorg.blogspot.de/2017/11/full-employment-through-price-mechanism.html
#4 MMT: The one deadly error/fraud of Warren Mosler
https://axecorg.blogspot.de/2017/11/mmt-one-deadly-errorfraud-of-warren.html
#5 MMT and the promotion of Wall Street socialism
http://axecorg.blogspot.de/2017/11/mmt-and-promotion-of-wall-street.html
#6 For details of the big picture see cross-references MMT
http://axecorg.blogspot.de/2015/08/employmentphillips-curve-cross.html