Too Small to Survive

McCain, in a continued attempt to give a populist tone to neo-conservative policies and programs that ALWAYS lead to crisis, is now saying that his economic plan, despite that it will make the rich richer and the poor poorer (the formula for crisis economics and politics) will not be to merely support businesses too big to fail, but too small to survive.

This is to validate a classic elitist argument that can be found in the discipline of organization theory in the area of organizing to manage risk. McCain is using it to support a populist sentiment. Is he really that incompetent that he does not realize that it is a pro-elitist, not a pro-populist argument?

Elite-model organization theorists advocate that the bigger the firm, the more capable of surviving risk, like running the economy into the ground with the least capable to survive beimg, of course, the smaller firms.

The classic illustration of the argument is this: since a small firm is more likely to drown in shallow water, it is at a higher risk, and so it is also unlikely to take risk. The implication is that economic growth is more likely to occur if firms are more able to survive risk and, therefore, take it.

Adhering to the elitist model of risk managememt was applied by hiring quantum physicists to fashion imploding models of debt-structured finance (high return, no growth). The model is just the classic pyramid scheme where the first in, at the top, are highly profitable which lures others into the business model. The result, of course, is classic economic crisis--deflation--and the pyramid comes tumbling down threatening the entire economy if it is not bailed out; an outcome that has been verified, once again, in a very up close and personal way.

Understand, despite what the Ivy League experts tell us, that the model eventually imploding and collapsing, taking small firms down because they are too small to survive, is fully anticipated and intended. That eliminates the competition and consolidates power. Despite the neo-classical innovation of means (algorythms of quantum physics and computer programing), the result is entirely classic.

While it appears to be counter to the pro-elitist model and argument for hedging risk, the effect of McCain's plan is to keep the causal factors of the crisis intact to require the need for government in the future (to socialize the loss-=the risk--by preserving the element "too big to fail"). So much for his stance on limited need for government...very similar to Ronald Reagan's nonsense.

McCain's attempt to give the Hamiltonian (elitist) model of political economy a populist face is just another laughable attempt to put lipstick on the pig. It is just another deceit.

I prefer to go with a genuine intelligence and conscientiousness that can be trusted.

Obama and Biden for President, and David Boswell (D-KY) US House.