From Jesse's Cafe:
Trickle down stimulus doesn't work to activate aggregate demand and encourage real economic growth because the largely unreformed economic system continues to divert the bulk of the stimulus and growth to the top.
Whatever is put in to this great economic machine, whether it be labor, materials, or monetary stimulus, the best and the most of what comes out is skimmed to the top. This is not a bug or fault, it is a 'feature.'
This is like sending aid to a Third World nation, where the warlords take the aid for themselves, and allow only a very small portion of it to reach the people. They take the stimulus and leave the debts.
And then there are the enablers, the professional class. They must support any regime for it to last. The Fed knows. Most academics know. Big media knows. Politicians know. It takes a pliant mind to ignore it, and a devious mind to rationalize it away. On one hand their brilliance justifies their rewards and positions.
But on the other hand, when something goes wrong, they don't know nothin' 'bout nothin', and had nothing to do with any of it. There are lots of fabulously paid CEO's of the public trust, who in reality do nothing and know nothing, except on paydays when they know they are worth a lot.
These latest ubermench are members of the 'winning class.' And those others, those losers, are obviously lazy, and stupid, and not favoured by the god of fortune.
Why should they do anything about it, even for the sake of their own conscience? Am I my brother's keeper? And the bribes are very good, very Darwinian. And the positions very piously taken, with pride.
Why consider the parable of the talents, when we would be as gods? We will write our own bible, our own parables. And we will believe them.
So they are sitting back and waiting for the little people to do something about it first, to take all the risks, again. Whether in war or peace, their cleverness and birthright prevails. Only the little people suffer and bleed. We are as wolves, and they are as sheep. And justice is ours, to do with as we will.
Winning.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.
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