********************  POSTING RULES & NOTES  ********************
#1 YOU MUST clip all extraneous text when replying to a message.
#2 This mail-list, like most, is publicly & permanently archived.
#3 Subscribe and post under an alias if #2 is a concern.

Why must revolutionaries worry about inflation? That cannot be answered
without a simultaneous worry about wages. Even in a capitalist system, if
wages rise with inflation then that is of benefit to borrowers as they pay
back the advance (home, auto, credit cards, etc.) with ‘cheaper’ dollars.
The key is the ratio of inflation to the wage. Indexing the wage to the
rate of inflation, i.e. say a wage of $20 per hour is increased 100%, to
match the 100% rate of inflation, leaves the real purchasing power of the
wage the same but devalues debt by 50%. But more to the point here is that
inflation, properly used, deliberately induced inflation, can be a monetary
tool that we can use as one method of aiding the transition from a
capitalist system to a socialist system-- which itself ought be
transitioning in its role as a precursor of a communistic economy and

Inflation. Inflation as a transitional device. Deliberately induced
inflation. Created by a printing press ‘bazooka’, initially, to give to all
a GAI (UBI) <https://www.google.com/search?client=firefox-b-1-d&q=GAI+(UBI)>.
Then, after an initial pre-inflation wage boost (most important are a rise
in the minimum and the guarantee of employment), the creation of new
currency, perhaps a la the Mexican nuevo peso in 1993, and at the same time
an indexing to the rate of inflation of wages, pensions, welfare, bank
accounts (up to a limit of say, e.g., the FDIC limit of $100,000), even
shareholdings and bonds (to that limit) held by individuals, perhaps in
401Ks.  All these would again be protected by being indexed to the rate of
inflation. Limits for housing ownership, subject to socially set limits.
Savings, incomes, capital gains above this or that limit (or any limit that
society sets) would be subject to being devalued by the deliberately
induced inflation. Expropriation through inflation.

Where's the money for this?" Well jobs don't cost they pay. Ask any
capitalist hiring any worker. But w/o going into that question there's a
simple answer to the first question about "Where the money?" The answer is
'print' it. They did it ($750bill) for the banks. Twice. Bush and Obama.
Paulson's 'bazooka'. They (then We) can print as much as 'needed' to fund
this. The Fed Res has such power to transfer purchasing power (which is all
that this is) as real purchasing power is created only through work. Such a
transfer by inflation reallocates the purchasing power by making
accumulated dollars worth less through inflation. Individuals with modest
savings can be protected by indexing these to the rate of inflation. Same
with wages. Pensions ditto. Etc. Those with larger fortunes would see these
reduced by as much as the working class has the will to do it:
Nationalization through redistribution of the ruling class' liquid assets
by inflation.

This, and all of this could be accomplished, I am certain with a tiny
portion of the computing power already extant. See almost anything by W
Paul Cockshott.  Information is essential as production goals need be
tailored to consumer needs and desires.

"Book-keeping, as the control and ideal synthesis of the process, becomes
the more necessary the more the process assumes a social scale and loses
its purely individual character. It is therefore more necessary in
capitalist production than in the scattered production of handicraft and
peasant economy, more necessary in collective production than in capitalist
production...” Marx. “Capital. Vol 2.  Chap VI.”

“…after the abolition of the capitalist mode of production, but still
retaining social production, the determination of value continues to
prevail in the sense that the regulation of labour-time and the
distribution of social labour among the various production groups,
ultimately the book-keeping encompassing all this, become more essential
than ever.” Vol 3. Chap IL.

Full posting guidelines at: http://www.marxmail.org/sub.htm
Set your options at: 

Reply via email to