An Organizational Problem

President Obama advised citizens not be seduced into becoming bankers because of the level of compensation, but to be productive in sectors that add real GDP and will be disinflationary (adding supply and adequate income) rather than deflationary (reducing income, or demand, to conserve supply).

The rhetoric incorrectly suggests a non-structural, non-organizational problem.

Citizens, of course, seek employment to maximize income in most cases independent of the structural dimension of the economy, largely out of their hands. The high compensation is available through organizational means that accumulates the capital to pay the high compensation, limiting the incentive to entrepreneurially compete for the profit and innovate quickly to market so that the means to disinflate the economy becomes the means to deflate the economy and reconsolidate the compensation paid, or the crisis we are in now.

The structural, organizational variable largely determines the decision to be a banker, i.e., organizing to accumulate and consolidate the capital causes the inefficiency that the president refers to.

Deconsolidate the capital and pluralize the marketplace. Both the efficiency and the freedom to pursue it will naturally appear as the fundament of a healthy economy with minimal volatility, less speculative risk and non-market distortions.

Deconsolidating the capital begins with a more progressive tax code, which not only satifies the sense of equity, but provides the means (the capital) to maximally innovate to add supply with an adequacy of income that renders catastrophic cyclical crisis an obsolete relic of the past.