McCain headed back to Capitol Hill

John McCain has not in my opinion communicated his economic positions well. Below is my attempt to clarify them.

McCain believes in Jeffersonian Democracy. What does that mean? Thomas Jefferson argued against Federalism, as he felt that it posed a risk and infringement to the liberty of Americans. The Federal government is a necessary evil, which should operate on the common benefit, security, and protection of Citizens, and should be watched closely and its powers should be minimized.
Science recently has determined that there is a scientific reason why this is the best possible configuration. Networks of all types, financial, government, electrical, communicative, all behave under certain laws. These laws have been described well in layman’s terms by Lazlo Barabasi in his book “Linked.” These laws argue against centralized networks as they are prone to cascade failures and that distributed adaptable networks are much more robust and capable of sustaining damage to one part of the network and reconfiguring themselves and continue to function. What this tells you is that democracy and capitalism, is inherently more stable than other types of systems of economic distribution and governance.

Capitalism has been moving towards big business, since the industrial revolution, and this has led to a centralization of Wealth which has placed our economy in the current economic crisis we face today. It is not accurate to place the blame on Wall Street, or on homeowners, for the current financial crisis. The crisis was driven by the centralized wealth and dynamics of the networked global economy.
The solution to the problem is to move toward decentralization of all critical networks such as Government and Financial.
McCain holds that we need to move from Big Business to many competing companies run on Main Street, and incentivize investment in small business over big business.
McCain also holds that regulation much like Big government needs to be circumscribed in its powers, but that it’s a necessary evil. The idea is that centralized standards, and regulation, reduce the cost of compliance and lead to greater efficiency.
McCain understands we need regulation and standards, but regulation and standards must be able to evolve and adapt, while cost of compliance must be the same for individuals as for big business on a basis that places the individual or small business with an equal footing to gig government or big business.
(In my opinion, this needs to be slanted towards small business and individuals. That it’s better to err on the side of smaller concerns.)
McCain is against Obama’s tax plan, because increasing capital gains tax on business, and investment, because it acts as a barrier to deploying monies to generate wealth formation. A simple way to understand this is as friction to the speed at which capital flows through the system. This matters to every American, not just the wealthy, as McCain critics say. This matters to every American because if assets are not deployed, and or leveraged, then entrepreneurial activities are curtailed, and with this comes a reduction in jobs, and a decrease in wealth distribution, and most importantly to wealth concentration which makes the average American a indentured servant to the concentrated wealth.
McCain understands that we need alter wealth distribution in this country such that it benefits the middle class and grows it. He also understands that in a free society you do not accomplish this by confiscating another’s wealth and redistribute it to others on the government’s whim. This was the approach of the old Soviet Union. What we need to do is provide incentives for people to place their wealth into the system so that others can become wealthy in their own right.
For those that think but I just want a job, and this does not matter to you, more business creation, leads to more jobs, and in today’s world with equity participation, greater wealth.