Hoarding Risk Capital
Hoarding risk capital is also referred to as hoarding labor. Again, keep in mind, wealth is induced to be used as capital. It depends on the rate of “return on investment” (ROI).
When capitalists demand a higher rate of return by, for example, saying economic growth depends on the rate at which capital gains is taxed, they are saying capital investment causes growth. Formulation of the working hypothesis is very simple: a higher cap-gains rate means lower growth.
We have been working with this hypothesis since the beginning of the GW Bush administration, and it miserably fails the test of objective reality. The conservative formula for growth is so blatantly disconfirmed that Jeb Bush can’t get his campaign off the ground.
The Bush name has no confidence at the base because it invokes the identity of massive detriment, sold as “the public good” (the quality of something we all possess, ruled, or quantified, by the legitimate, utility, or the natural identity, of the numbers). An effectively regressive tax code (which effectively increases ROI–the empirical value of the numbers) hoards labor, slows the rate of repossession, and causes an accumulative (gamma-risk) proportion.
The higher the rate of repossession, the lower the tax rate and debt to equity, naturally raising ROI (optimizing the risk-value) for everyone in a free and unconsolidated marketplace.