Creative Deduction

One of the most devastating critiques ever made of Marxist economics was delivered by Eugen von Böhm-Bawerk’s Karl Marx and the Close of His System (1896). The Austrian economist exposed deep contradictions in Marx’s Capital, especially between the labour theory of value and the theory of prices of production. The title is ironic - Marx’s system wasn’t closing triumphantly; it was collapsing. 🧵

@hashjenni No. Blocking oil shipments to Cuba is in America's interest. Blocking the Strait of Hornuz is not. America First, remember?

Just so i understand this, blocking the strait of Hormuz is unfair, but blocking oil shipments to Cuba in order to collapse their whole country, is fair, did I get that right🤔

@EgmontHandtke Praxeology is the correct scientific for economics.

“One of the most devastating critiques ever made of Marxist economics was delivered by Eugen von Böhm-Bawerk’s Karl Marx and the Close of His System (1896).” (Creative Deduction) The history of economic thought is the history of scientific failure. The major approaches are mutually contradictory, axiomatically false, and materially/formally inconsistent. They ALL got profit wrong. Marx was NO exception. For proof, see the working paper ⇒ Profit for Marxists axecorg.blogspot.com/2015/02/profit… When the subject's foundational concepts are inconsistent, the entire analytical superstructure is scientifically worthless. Böhm-Bawerk, too, got profit theory wrong. Scientifically, there is nothing to choose between Marxianism and Austrianism. That's most devastating.

One of the most devastating critiques ever made of Marxist economics was delivered by Eugen von Böhm-Bawerk’s Karl Marx and the Close of His System (1896). The Austrian economist exposed deep contradictions in Marx’s Capital, especially between the labour theory of value and the theory of prices of production. The title is ironic - Marx’s system wasn’t closing triumphantly; it was collapsing. 🧵

@BenGrahamUK I think it promotes division. We shouldn't decorate our streets with political messages.

This rainbow junction in Hounslow cost £48,174 of public money. Some will say it promotes inclusion. Others will question the cost. Where do you stand?

@Ham1231984 @AaronBastani Inequality did rise for a while, when things were good back in the 80/90. But for the past two decades the gini coefficient has been broadly unchanged. High incomes have fallen faster then low incomes since Covid, basically making us more equal as we all got poorer.

@CreativeDeduct @AaronBastani Ok what evidence do you have that wealth/asset ownership stratification has not significantly changed over the last 50 years?

The people responsible for Britain losing two decades after 2010 will soon tell you that what we really need is cuts to public spending, and tax cuts for the wealthy too, of course. Just unserious: it’s not about spending more, or less. We need to now be thinking like a developing country: cheap energy, cheap housing, development of human capital, technological autonomy, food and energy security. Anyone whose idea of ‘supply side reform’ being the same as cutting corporation tax is presently as useful as an umbrella in a hurricane.

@JohnSurico @MayorofLondon And we can get it even lower be reducing the speed limit to 5mph !!

Last week, @MayorofLondon announced that London now has one of the lowest per-capita rates of road traffic deaths *in the world*.

@stuartshakesby I was more thinking of the breast enlargement hypnotist.

@CreativeDeduct Much like Nigel Farage, without ever holding any real power, has directed the public conversation and government policy. That the kind of thing you mean?

Some of the most absurd people in the world with the most ridiculous opinions in human history are being allowed to shape public policy and decide how we should live.

@Ham1231984 @AaronBastani of course I am. all real people agree with you without demanding any evidence that you are right

@CreativeDeduct @AaronBastani "no evidence" are you a bot?

@bphillipsonMP @educationgovuk All paid for by more taxation and borrowing, not growth.

This government is focused on the cost of living. At @educationgovuk, we're saving families cash: £450 on free breakfast clubs £50 on school uniforms £500 on free school meals £300 on school holiday clubs Now it's confirmed we've halved childcare costs, saving parents £8,000.

@Ham1231984 @AaronBastani There is no evidence pointing to inequality rising but our growth has been stagnating for two decades. So it's preposterous to blame rising inequality for people feeling poorer.

@CreativeDeduct @AaronBastani "we can't redistribute our way to wealth" why? Huge proportions of our economy have long since pivoted to consolidating the position & ongoing acquisitions of the wealthy rather than growing new sources of productivity. You don't make barren land fertile by starving it.

@NEF Well, yes, if your insane ideas are to be taken seriously, the first thing we need to do is discard economics as an intellectual discipline and treat it as pure vibes.

"We've got to stop equating the government's finances with a household." Zack Polanski speaking about government finances, austerity, and the problems with the UK's fiscal framework at our event this week

As a result, Marx’s entire theory of exploitation and class struggle unravels. Böhm-Bawerk demonstrated that without a coherent value theory, the system fails internally. This critique heavily influenced later Austrians like Mises and Hayek, and it remains a foundational refutation of Marxian economics today.

The fatal blow was the “transformation problem.” In Capital Vol. 1, Marx said goods exchange according to embodied labour values. But in Vol. 3, to equalize profit rates across industries with different capital intensities, Marx switched to “prices of production”. Böhm-Bawerk showed this creates a logical contradiction - Marx was using the very market prices he claimed to derive from values.

I'm willing to listen to anyone who can tell me what this guy has been right about. Anyone? Did he foresee rising unemployment when Reeves hiked NI? Did he predict that Net Zero would leave Britain with the highest energy prices in the world? Did he think the Renter's Rights Bill would cause a rise in evictions? Did he warn us that hiking the minimum wage would make youth unemployment skyrocket?

‘It’s not satisfying anymore…’ James O'Brien is 'sick and tired of being proven right.'

@adam_rco @AaronBastani Hmmm… we have the highest public spending and the highest taxes in history.

@CreativeDeduct @AaronBastani We've been cutting tax & spend and deregulating since 1979. This is like the right wing equivalent of "real communism hasn't been tried yet"

@spencer33571096 I don’t think the man is smart enough to even understand how uneducated and naive he is. And I don’t think anyone in the party worry about it, because they’re on a roll.

@CreativeDeduct He's got the gift of the gab, but he needs proper economists to start challenging him on the cost of his policies along eco impact, otherwise he just may get a say in govt. I think the electorate know a grifter when they hear one , but in this climate it's a worry.

@spencer33571096 It’s a catchphrase. It has no meaning but it sells the vibe that the Greens are feeding off.

@CreativeDeduct "Reduce people's cost of living" .. he really hasn't thought about this one has he ?

@BidSurreal It’s pretty obvious that most people are deeply unqualified to have any influence whatsoever over economic or foreign policy.

@CreativeDeduct Plato agrees