Exploitation of Distressed Assets as the Model of Efficiency
“No taxation without representation” is the slogan of the Tea Party identity, but it does not square with reality. The reality of the situation will find its true identity, however, and (factorially) it gets closer over time, gaining velocity.
The Tea Party’s base is paying all the taxes. So, to gain representation, they load good offices (utilizing the force and legitimacy of public authority) with right-wing reactionaries that say reducing the tax burden of rich people causes economic prosperity, which will trickle down to its party’s base. It really isn’t hard to figure out that the identity doesn’t actually fit.
What the identity actually causes is a cycle of distressed assets. Capitalists learned that if the distress does not occur in long-short cycles, that look ontologically derived (operationalized with long-short financial techniques used by hedge-funds and private equity), then capitalism very quickly loses its utilitarian legitimacy. Long-short funding (buying long and selling short against core positions) is why we have a recovery with deflationary attributes.
Deflation of rising median income after WWII has been a long-wave cycle. When Reagan’s technocrats resurrected the Mellon cuts, middle-class income was sure to see a long, deflationary cycle that isn’t over yet. In fact, we now expect recoveries to occur with declining median income, which financial experts technically refer to as “the new normal” that technically “intends” the model of efficiency being your assets in distress by default.