The Decay of Rent-Seeking

I enjoy a good propaganda Piece as much as Anyone, especially one where even the Author fails to understand the Advertising implications. The inevitability of the desired Goal is first asserted, followed by the huge horror which can be picked out of History and proclaimed by any failure of the desired Goal. The partisan self-interest is not denied, simply covered with the patina of Experience. The desired Goal leaves the cusp of Rent-Seeking, and blooms into the beautiful flower of necessary Tool rather than expensive Toy. Banker and Wall Street wish to attain the Welfare graft always sought!

The Reality may not be presented by the beauty of the Writing. Anyone with Experience will inform they must get the Money before the Election, or the Crisis will disappear at the current rate of Risk reduction. Delay will cause the need for the Bailout to disappear before they can get their hands on the Cash; reminding of the Stimulus Package, where the full effects of the Downturn had been undergone, altering Consumption patterns anyway. Rent-Seekers hate the slow pace of Congress, which never provides the Money before the Markets have moved past the Issue in question. Worse, it becomes apparent to the educated Mind that the Rent-Seeking has lost all effectiveness except for an Inflationary pressure. What is a bunch of Scoundrels to do, when their paid Assets in Congress cannot get their work done on Time!

I enjoyed, and agreed with, the Comment mentioned on TV yesterday from a Small Town businessman, who asserted that any Business which depended on steady Credit for meet its Payroll was inefficiently run. The implication was such a business should be out of business in the first place. Anyone operating with such close Margins should think of alternate methods of employing their Capital. I remember a Friend who sold a profitable business, simply because it did not enjoy the rate of Growth which he thought necessary; he did not have trouble with meeting his Payroll at any time, though. I know Another who financed a Coffee House totally from Credit Cards, and achieved total Credit independence within four years. An economic downturn will of course change any business matrix, but business enterprise which cannot maintain a Payroll free of Credit after 5 years of operation, truly needs to fail anyway. Any belief in Creative Destruction must call for Congress to leave the Markets alone! lgl