Paul,

You were the one who said you supported Dieterich's "equivalence economy" 
where equal quantities of labour should exchange for each other, isn't that 
so?

As regards an egalitarian credit economy, it is basically a further 
development of money economy but transcending it. Without dressing this up 
into Marxist verbosity, I suppose I could discuss a few aspects of the 
concept. It occurred to me once when I was a student.

The basic idea is that people build up credits during their lifetime but 
they can also lose credits. They can access resources with the credits 
they've built up, and if they don't have the credits, they can't access the 
resources.

I guess the main difference from a cash economy is that you cannot use your 
own credits purely to obtain more credits, you cannot use somebody else's 
credits, and ordinarily you cannot transfer your credits to somebody else. 
There's just a computer record which details your credit position at every 
phase of your life, it's quite transparent.

Let's say you  committed a serious crime, well, you would lose a lot of your 
credits. In prison you would have to earn enough credits to live outside of 
prison again. You would get some credits allocated to you, as a standard 
procedure, merely for being alive, but to obtain other credits you would 
have to put in extra effort. Normally the society would guarantee 
individuals credits for a minimum living standard, but for everything else 
they would need to make personal effort, unless they were demonstrably sick, 
disabled etc.

The exact system of allocating credit is obviously not "cast in stone" but 
reasonably flexible - experience might show that a bit more credit is due 
here, or a bit less credit is due there, or that we need a new category of 
credit tokens. There would always remain some conflicts about some areas of 
credit allocation. So really the government of the system would keep 
adjusting the system depending on how people were voting or behaving.

The credit allocation system need not apply to all resources; some resources 
could be left to be traded freely, if that is more practical or fairer etc., 
or if any kind of relevant norm is absent etc., or some other allocating 
method could be better applied.

The egalitarian credit economy combines social requirements with individual 
choice, and it is reasonably "meritocratic". It is also a reasonably supple 
system, since rewards for effort can be scaled upwards or downwards within 
egalitarian limits, to encourage people to go into certain activities or go 
out of certain activities. For every age group there is a minimum and a 
maximum amount of credit you can potentially have. In addition, some 
activities can be brought into the system or excluded from the system 
according to what seems to work best.

For almost every field of human activity, it is possible to decide which 
part should be included in credit economy, and which part should be left 
alone, or follow some other allocation principle. And you can work out 
standard norms for allocating credit in each field of human activity within 
the scope of credit economy. Once a credit standard has been designed it can 
be voted on, and implemented until such time that a change seems warranted. 
For some activities, standards would be fairly constant, for others the 
standard would change quite rapidly across time.

This kind of "planned economy" doesn't merely feature integrated digital 
price accounts, labour accounts and product-unit/asset-unit accounts which 
tell society exactly  how resources are being used.  It also features 
"digital people accounts" built up across your lifetime, accessible to 
yourself and people you authorize to have access to it for practical 
purposes. You know exactly what your standing in society is at any time, and 
you can easily find out how to change it.

The drawback of the system I guess is that you sacrifice the ability or 
freedom to do certain things with money which you do have in a cash economy, 
because in an egalitarian credit economy you cannot utilize your credits for 
certain activities, and ordinarily you cannot trade your credits with 
others. Certain circuits of trade are not possible. But I suppose the 
advantage of the system is that you can stop worrying about gaining the 
basics of human existence, and concentrate on achieving things in life, with 
very clear signals about how you are doing, at every phase in your life. You 
don't have a "mysticism or mystique of suffering to achieve something".

The aim of the egalitarian credit economy is not to say that money is 
intrinsically evil or that people shouldn't have their freedoms, but rather 
that the contract between individuals and society takes precedence over many 
other sorts of contract you can have. The purpose is to re-align the 
patterns of competition and cooperation, so that they fit better with how 
people really are, how they want to develop, and with what is known to be 
good for them.

Abusive and anti-social forms of trade which money makes possible are simply 
eliminated, because you simply cannot use your credits for those sorts of 
activities. You might still be able to trade or barter some kinds of stuff, 
but only within certain limits. In some areas of life there would still be a 
private sector, in other areas there would not be. The credit economy 
preserves many of the features or flexibility of cash economy, but in some 
respects you can do less with you credits than with money, and in other 
respects you can do more with your credits than with money.

Well that's a thumbnail sketch of it anyway.

J.





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