"Infusion" or "Distribution" Phase of the Business Cycle?

January 21, 2009

Financiers and conservative economists want to describe the phase of the business cycle we are now in as "the infusion phase."

Defining the distribution phase as "infusion" is a neo-conservative attempt to foist their ideology, their words, into action.

The next step for the Obama administration, if we are to quickly and effectively turn our economy around defined as "change we need," is to facilitate the distribution phase from the existing pool of consolidated capital through Treasury and the Federal Reserve system. Infusion of new capital--the neo-conservative, Keynesian approach--will defeat the change factor.

Infusion will keep the consolidated capital intact and will act to consolidate the infused capital going forward into "recovery" (another term, a word, to guide action) so that the distribution of economic, and political, power is status quo ante, or conserved in a neo-conservative (Keynesian) fashion.

Obama has been wise to define the hastening of the distribution phase with the necessary means to be taken--as a "reinvestment," rather than the ends--a "recovery."

Defining the government's action with the ends ignores and diminishes the importance and necessity of the means to effect, and define, the change we need as a long term solution that avoids or eliminates the crisis that cyclically consolidates wealth and power.

If we deconsolidate the capital and ensure the operaton of free markets in priority, we will usher in an age of peaceful prosperity in which a free market invokes the verifiable promise of freedom to provide and prosper rather than a means to tyrannize and deprive through a system of false choices and continuous reinvention of the promise.

An age of peaceful and prosperous pluralism is at hand. We should not allow neo-conservative rhetoric and policies, like funding programs with a regressive tax burden, to continue guidance into a tyranny of markets masquerading as freedom or the general welfare.