The Obssesion with Theory

I know that the 2001 Recession started in February of that Year, though the Economists cannot fix an exact date, because of what in reality consists of their political affiliations. I know that the Recession of 2007 started when Banks found interruptions in the flow of Cash, somewhere around July of 2007. I realize that this Recession is over a Year old, and would not actually exist today, if Banks and Corporations would Write Down their Losses. The Trouble comes in the form that Corporate and financial leadership has become enamored of selling Stock and Speculation instruments rather than operating their specific organizations efficiently under stability. The Reason behind this debacle resides in the reality that the Paper is the manner in which to build Personal Wealth, even when this later construction can be hazardous to the companies involved in the pursuit.

Rent-Seeking does not simply infect Wall Street and Corporate boards. The flow of unattached Cash affects Everyone, and the desire to convert it to Personal Wealth corrupts All. There is little chance to control the Corruption, without the adoption serious universal Control measures. I personally think that the best Control is forestalling the flow of Cash in the first place. I would forbid the issuance of Stock Options and Grants to Management, introduce Percentage maximums on Labor Costs (stating that no Salary deduction from Tax liability can exceed 400% of the deduction granted for entry-level Labor in the business), and insistence that both Stockholders and Employees must approve of Management salaries and benefits. I will say here that most Business would face Strike Conditions, if Labor knew the total largese of Management gain from their own labor.

Gavin Kennedy might find my position offensive to his own view of Market rectitude, but We agree in principle. Markets are the foundation of successful economies. Any potential conflict between our positions may reside in the degree of information that is released. Gavin would undoubtedly opt for that information which the Market can extract from Business entities, while I would insist on Command revelation of financial structure simply to provide the full Market interaction necessary. The American economy follows a limitation of Information, while the cited Finland demands a priority more in line with my thesis. Any degree of Market flow remains better than any amount of Command compulsion, but Open Information probably holds the Turning Point. lgl