FAIR-MARKET MERCANTILISM

[The following was sent as an e-mail to Princeton Professor & Nobel Laureate Paul Krugman.]

I am concerned that the continuing "worship" of "free-market capitalism" by both Republicans and Democrats is going to cost our economic future dearly. We do not and never have had in this country a so-called "free market," at least not since the late 1800's (except for perhaps the past 8 years or so). I think it is past time to prick that balloon and let it disappear. Markets are inherently greedy. They are supposed to be greedy. That is why they must NEVER be unregulated, as you have argued.

It seems to me that the pundits in the US should instead recognize and promote "fair-market mercantilism," by which I mean the process of selling what is actually made to ready buyers in a fairly regulated market.

We are NOT in a capital crisis, we are in a mercantile crisis! Stuff ain't selling!

We must return to aggressive enforcement of the antitrust laws which have been mostly neglected since the Carter Administration. We must purge American industry of its bean-counter CEO's and MBA's who are screwing our manufacturing base into the ground with their bottom-line tunnel vision and cashflow myopia. We must elevate engineers and technicians to CEO status (as do Asian and Euro industries) to let them actually run American industries because they know how to actually make things that people want to buy, rather than trying to manipulate the markets to trick people into buying what the bean-counters decree they should want.

The American vehicle-manufacturing industry is a bleeding case in point and an issue I know something about: while Toyota and others are run by engineers who inherently know what people want, the US is controlled by these know-nothings trying to figure out what kind of cars people OUGHT to want. These twits are brainwashed in business schools to believe that all industry is generic and that they can run anything. Their paper credentials sadly intimidate those who actually know what to do but don't have the paper to prove it.

The notion of trickle-down tax cuts for the wealthy goes hand-in-glove with the fraud of "free-market capitalism." As I understand it, we should cut taxes on the wealthy so that they will invest their engorged wealth and deign to allow us peons to catch the chump change dripping from their pockets as they waddle to the Mercedes or Rolls-Royce dealer.

I am very angry that the working stiffs in this country, who cannot deduct the rent they pay for an apartment, are paying absolutely higher percentages of their gross income in taxes now (including FICA) than the wealthy, who get not one but two mortgage deductions, pay no FICA on salaries over $100K and pay only 15% tax on capital gains and dividends. That is absurd. The workers need some relief. They spend almost 100% of their incomes, and they are the future of mercantile recovery, NOT the wealthy. Not even Pres. Obama seems to understand this distinction, as he and that worthless Secy. Geithner continue to shovel cash to the very idiots who have already gobbled up our seed corn.

The median household income in this country is around $60K, and it is utterly absurd to proffer tax relief for those making over $100K. The median contemplates TWO workers each earning around $30K, like most of my friends, who are struggling. That is ridiculous. It may make political sense, but it is outrageously unfair.


"Generic Management 101"
(my palindrome)

A BMW; a rake--EGAD! A geek! A raw MBA.