I was simply reading this article online, when I decided I would have to become a Heretic. Like most such offenses from the True Faith, this I start this with light heart and expectation that everyone will understand my position; though in truth, it will probably be greeted with vast disdain and terrorist contempt. Reaction will indeed probably consist of less than assassination, though character assassination holds high Incidence value. I might as well get started in the vilification of current economic policies at this Point, as no one steps forward to save me from myself.
My main Contention starts from an estimate that, in Reality, there is too much Cash in the system. The real reason that Stimulus and Intervention fails to produce the desired effects follows from modern business and finance methods to forestall absorption of Losses. Businesses today cut Production and Staff, not Profits. Translated differently, Business refuses to integrate the economic difficulties from which Consumers suffer. There are always too many Players too well funded to allow Recovery efforts to survive. This leaves Consumers, already losing Money and Jobs, to exert the economic energy necessary for successful recovery, facing the great mountain of Investment funds of a Business class who refuse to report any losses. They are willing to pressure Regulators and Legislators to ensure they come up with no Losses and are capable of over-Pricing any and all Production resources.
All Monetary, fiscal, and Tax policy adopted so far within the last Crisis has gone to guarantee that Business Interests would not have to eat any financial losses. I return the Reader to the Concept that there are too many Players with too much Money, and this practice will have to be stopped before serious Recovery can be effected. The best Means which should be adopted need be harsh Taxation, which will bring in tax revenues and curtail Business expansions, except in certified Profit areas. The Bush Tax Cuts in this Scenario can be likened to slow Arsenic poisoning. The best way to introduce massive harsh Taxation immediately would be nullification of all Tax remissions for the next Tax Year, except for a flat family deduction adjudged by the number of financial Dependents. Does this assessment make me the darling of both Liberals and Conservatives? lgl