Old Dogs need no new Tricks

Jacob Hacker again proves that he has more brains than Most. Study of the concept of Risk-Taking suggests many things: paramount of which is the idea that only so much Risk will be assumed by the Risk-Taker. This becomes relevant when one studies the individual case, where not only is there potential economic loss, but additional health issues or potential provision losses for the family. Innumerable are the situations where individuals will not alter their employment because of a health care issue for a child, which they could not otherwise afford except through current employment. There are vast ripple effects other than that noted, the heaviest possibly the inability of a Spouse to find equally valuable employment with a geographic deployment. It all adds up to the Statement that leaving all Risks on the shoulders of the individual is probably more damaging than lack of Capitalization.

Judge Posner regales Us with a litany of woes, many of which he presupposes could be avoided in some manner. He an I know that what is being done by the Government should not be done, though it seems We are both in the dilemma of not knowing exactly what should be done. One should not rant against Anyone doing something without an alternate Suggestion, especially when the livelihoods of people are dependent upon that action. I do know that federal action should be directed at the protection of the American households, rather than at protection of American Banking or Business. My one proposed Solution would be opposed by the good Judge, and probably all Economists: A guaranteed Minimum Income through reverse Income Tax, funded by retraction of all Tax exemptions and excusals of every type. Adoption of a basic philosophy of ‘Reach for the Stars, and when you land on your butt, it will be on a pillow’.

Nick Rowe reminds Us all that Words are designed to confuse Us. He takes Us from a ‘rallod’, Dollar, Old Dollar, New Dollar, and back to Dollar. He uses all these terms when he could equally simply asked for a 5% Tax, serving equally well, and insuring that Government is financially sound even if other businesses and institutions fail. I await some great Thinker to come forward at this time, and suggest the Truth, that We should tighten the flow of Cash. It is the old draconian methodology of forcing poor business formats into bankruptcy, then utilizing the saved resources to prop up the remaining economy. It is the only method proven to succeed by substantial previous practice. lgl