Forum Post: The Republican War On Science
Posted 12 years ago on Oct. 31, 2011, 9:04 a.m. EST by RAM
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“Science and technology are the engines of prosperity. Of course, one is free to ignore science and technology, but only at your peril…If you do not master the latest in science and technology, then your competitors will.”-Physics Of The Future p.297 by Michio Kaku
The repugnant war on science is very real. So real, they ignore global warming. So what the hell excuse will they play when this truth becomes undeniable???
Why do idiots such as yourself make this a partisan battle. Seriously dude?
WHat has Obama done for you lately?
The basis of the problem is the laws that have enabled and perpetuated the problem. If you look at the fall of the exchange in 1929, its cause and the reaction by the government you will find most of the problem. In 1929 only ~10% of all businesses were public and the remainder was private. ~2% of the population were involved in trading stocks and most of the individuals we very heavily leveraged (They bought on credit).
Next the market dropped, individuals lost their ability to pay off their margin accounts and wiped out the capital overnight in the banking system, Couple that with the hysteria of the people running on the banks to get there gold out and you have a recipe for disaster.
For most they were not initially affected by the falls of the exchange in 1929 but when banks failed they felt it. Businesses lost credit to operate, accounts were wiped out and small private business failed. No fault of their own but the fault of the overzealous banks. Individuals found there savings wiped out alongside the private businesses and the world plunged into the abyss.
The reaction to this was FDR and the 1933 securities act and the 1934 securities and exchange act. What these two pieces of legislation did was strip the ability of the small private business (who did not cause the market collapse) to raise capital in a traditional form, Bonds. Direct investment was for many years the mainstay of the entrepreneur. It put the restrictions on who could invest (Qualified institutional investor) and how the investments could be sold. It stripped the ability of the individual to invest and make the high returns they became accustomed to and placed all of it into the hands of the very few 1%.
Today if you are a business owner there is a glass ceiling of about $3 million dollars where a business could potentially get debt to expand, retool, or modernize. The Wall Street and Banks prefer an Equity offering. How often do small business owners sell the majority share of the company they own under a public offering or private sale (sale to high net worth’s) to raise the capital they need. The horror stories of this arrangement are very clear. They give up control, get voted out of the company and the new share holders shut them down move the product manufacture to China to maximize the return to the High Net Worth investor (new owner).
The laws perpetuate the problem. Now remove the Glass-Steagall Act and it becomes a high net worth orgy.
Focus, access the laws, and fix the system that perpetuates the behavior.
FIX THE LAWS
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