Taking the Loss, Recapitalize the Gain

An Economic Reconstruction Act

Our economy needs reconstruction, not just stabilization.

I am hearing from policymakers that the Stabilization Act is just the first step to economic recovery. This just means that the recovery phase of the cycle is being hastened. The problem will be kept intact to cycle into crisis again, and again. That needs to change.

We can start changing it now. We do not need to wait and systematically forget about the problematic elements of our economy that causes cyclical crisis like, a regressive tax code, budget deficits, and an over-leveraged, over-consolidated capital. Reverse these causal elements of crisis and we will be squarely, surely, on the road to reconstrucitng our economy for reliable stability both now and in the future.

The beneficiaries of the over-leveraged capital need to take the loss directly. The gain needs to be directed into recapitalizing the financial markets fpr a competitive multiplicity that is disinflationary (competitive prices), rather than deflationary (leveraging speculative demand), and keep everybody honest. If you are not up to snuff, if you can't be trusted to do the right thing, YOU WILL FAIL! Success will be by following the dictates of the marketplace (the legitimacy of the collective will), not by dictating the collective will in the marketplace to fulfill the self-interest of a small power elite.

Now is the time to exercise the political will--the Constitutional Right and Duty--for reconstruction of power and political economy.