The last time we had a mortgage crisis and bailouts in financials was when we had Reaganomics--full blown trickle-down economics--in operation.
The results of the Bush administration's latest retrenchment of the regressive-taxation working hypothesis is, predictably, deflation and a liquidity crisis, just like last time.
The reason these neo-conservatives can't learn from their mistakes is because they are a slave to their ideology. They are not pragmatists of the common good. They are ideologues and fully expect the highly predictable result of an exclusive, zero-sum benefit the economy is organized to produce. The cost and the benefit produced is not considered to be a mistake, but the natural consequence of people that are fittest to lead in a free republic (Hamiltonianism). The measure of that "fitness" is the status of your income and the willingness to be in service to its conservation.
The economy's distressed assets, the wealth of the nation, are bought and consolidated to be retailed back to "The People" in the recovery phase of the business cycle.
This process is a legal means of expropriation that can be legitimately stopped and reversed by a coalition of non-elits in the political marketplace, where the current trend began.
Every policy and program effort you will see from neo-conservatives will be to stop and reverse the current trend without progressive tax measures and a more pluralistic economic environment (bailing out financials, executive orders to lift the ban on offshore drilling...). Anything but to reverse the fundamentals that they have organized to command the business cycle to expropriate a highly exclusive benefit with a massive deprivation of the wealth. The new coalition must resist those efforts because they are the source of the problem.
The beneficiaries of the current political-economic organization will benefit plenty from the stop and reversal of the current deflationary trend with progressive tax policies and investment in a deconsolidated marketplace (Jefferosnian pluralism). The biggest difference is that non-elits will not "suffer" being continuously set up for crisis and deprivation.
Everyone benefits with a more Jeffersonian model of a democratic republic in which the elite are rewarded access to power through pluralistic processes and consent of the governed, a pragmatics of continuous improvement toward the common good, not the other way around.
The change we need will not be the product of ideology, left or right. It will be the product of a practical pragmatism guided by a moral intelligence to be rewarded by the empirical proof of the popular vote, not the command machinations of a bureaucratized elite authority shammed with a false pluralistic legitimacy.
Build a coalition for lasting change in which everyone benefits.
Build the coalition for Obama!
Very best wishes.
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