In a previous post (Milton Friedman: A Man of the Past?), I concluded that Milton Friedman, an extreme advocator of "free market" and individualism, is mostly an economist of the past.
In this post, I will highlight John Maynard Keynes, a balanced advocator of both "free market" and "managed market", as the best economist since 1899....Frank Li is a Chinese ex-pat now a businessman in the US, has a BE, ME, and PdD in electrical engineering. So cut him some space on the economics. He is not in paradigm with MMT, but rather somewhat of
an old Keynesian, which is a lot closer than most.
On the other hand, his view as a Chinese ex-pat become successful in the US and also as a highly education and experience lay-person looking in at economics is valuable.
economicintesect.com
John Maynard Keynes: The Best Economist Since 1899?
Frank Li | Chinese ex-pat, Founder and President of W.E.I. (West-East International), a Chicago-based import & export company, B.E. from Zhejiang University (China) in 1982, M.E. from the University of Tokyo in 1985, and Ph.D. from Vanderbilt University in 1988, all in Electrical Engineering
China does NOT need Keynesianism
ReplyDeleteComment on Frank Li on ‘John Maynard Keynes: The Best Economist Since 1899?’
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.”
Let us put some points straight:
• 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
• This proposition is conceptually/logically false because Keynes NEVER came to grips with profit.#2 This is self-defeating for an economist.
• Because the foundational economic concepts profit/income/saving are miss-specified, the whole theoretical superstructure of Keynesianism in ALL its variants is false.#3
• Keynes messed up the inexorable paradigm shift from microfoundations to macrofoundations.#4
• 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
• 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.
• 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
• After-Keynesians have not detected/rectified Keynes’ blunders to this day. Macroeconomics ― profit and employment theory, in particular ― is materially/formally inconsistent.#7
• Keynesianism is scientifically worthless.
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
China can do better without Smith, Marx, and Keynes. #9
Egmont Kakarot-Handtke
#1 Keynes and the logical brilliance of Bedlam
https://axecorg.blogspot.com/2015/10/keynes-and-logical-brilliance-of-bedlam.html
#2 How Keynes got macro wrong and Allais got it right
https://axecorg.blogspot.com/2016/09/how-keynes-got-macro-wrong-and-allais.html
#3 Forget Keynes
https://axecorg.blogspot.de/2018/02/forget-keynes.html
#4 Finalizing the Keynesian Revolution
http://axecorg.blogspot.de/2016/03/finalizing-keynesian-revolution.html
#5 Who or what exactly did Keynes save?
http://axecorg.blogspot.de/2016/11/who-or-what-exactly-did-keynes-save.html
#6 Keynes, Lerner, MMT, Trump and exploding profit
https://axecorg.blogspot.com/2017/12/keynes-lerner-mmt-trump-and-exploding.html
#7 Post Keynesianism, science, and universal idiocy
https://axecorg.blogspot.de/2016/08/post-keynesianism-science-and-universal.html
#8 Marshall and the Cambridge School of plain economic gibberish
https://axecorg.blogspot.com/2016/09/marshall-and-cambridge-school-of-plain.html
#9 For details of the big picture see cross-references Keynesianism
http://axecorg.blogspot.com/2016/09/keynesianism-cross-references.html
“ economists who, to recall, are known to be scientifically incompetent ”
ReplyDeleteThey’re not trained in science they train (typically) under an Arts methodology...
Very few schools award a Science Degree in Economics...