Having It All Your Way

If you can have it all your way in the marketplace, it is not a free market.

Republicans have stalled the damned-if-you-do-or-don't rescue bill. They want to include a provision for a capital gains tax reduction in order to attract the liquidity "sitting on the sidelines" needed to resolve the liquidity crisis.

Republicans effectively propose increasing the regressive tax burden that causes liquidity crisis so that providing liquidity--financial service, investment, banking--is made without any tax burden. People that are withholding liquidity and willing to cause hardship for "The People" unless they get a favorable tax burden for causing crisis, and then act like they are our saviors when we have to pay them to save us, is nothing but the very height of corrupt--a lack of practical moral intelligence.

The application of this Hamiltonian model of political economy is a model for having it all one way. It is not a free market model. Yet Republicans argue the legitimacy of the capital gains tax reduction, to validate the operation of free-market "principles" (the private ownership of the capital), to be provision for the free-market model with a competitive tax rate in a rescue bill deemed to be otherwise socialist.

Application of the Hamiltonian model reduces the "competitive" dimension of a free market to a "necessary" use of the surplus, the capital, without a tax burden which, by the overwhelming evidence we have staring us square in the face, causes socialism of the capital.

If socialism is not what you want, don't do what causes it.

What we see here is the application of rhetoric for the development of public policy. Where verification, the scientific method, is needed to produce an effective public policy, validation--the rhetoric of ideological "principles"--is instead being applied.

If you recall, at the outset of the Bush administration, Bush said he would execute "the principles" of conservative economic policy, which are the tax cuts that the McCain camp says it will make permanent. Chief among these cuts was the capital gains tax and the perverse incentive to leverage profit before growth which produced this extra-extensive liquidity crisis that, in the end, cannot, predictably will not, produce the growth to pay the debt (the leverage).

Lowering the capital gains tax is the proverbial putting the fire out with gasoline!

Obama says he will not increase the capital gains tax to increase the incentive for consolidated capital to distribute its consolidated, frozen, liquidity. It is a measure that conserves the consolidation of capital where deconsolidation is needed. It is a pragmatic measure to provide short-term relief, not a confirmation of the necessity for making regressive tax policy, and what causes the crisis, permanent.

The pressure for a tax free use of the consolidated capital is extortionate. Extortion is characterisitic of a criminal element and indicates a lack of choice, a tyranny, where choice must obtain for a legitimately free market economics. It is a means of illegitimately having it all your way.