". . . a movie theater with one hundred seats, representing productive capacity. How many tickets do you distribute for each performance to ensure that productive capacity is fully utilized?"
-->Good question. Suppose a ticket is good for any show, not just for a single performance, and there is one show per day. You issue a 700 tickets for the first week, and 560 are used (80%). 140 tickets are still out there to be used for another show. If we assume this to be a consistent trend (i.e., real demand for movies is satiated), then by the rule of Whichever Happens First, you should reduce the days you show movies by 20% and let the projectionist go home. And for the second week, you'll only issue 420 tickets, because 140 are still out there.<-- Let me decode the metaphor for you. One hundred seats per performance represent production per unit time. Empty seats at a performance represent production that is wasted. To ensure that production is not wasted you issue more than one hundred tickets per performance. You distribute sufficient tickets to fill the seats. If more people consistently show up than there are seats, you have exhausted productive capacity and reduce the number of tickets you issue. If not all the seats are filled no matter how many tickets you issue, real demand is satiated. -- ---original message--- Date: Fri, 6 Jun 2003 17:26:36 EDT From: [EMAIL PROTECTED] Subject: [SOCIAL CREDIT] epiphany To: [EMAIL PROTECTED] Reply To: [EMAIL PROTECTED] Dear Friends, Once again, I appreciate the modesty and thoughtfulness of Bill Ryan's reply. This discussion is becoming quite interesting. Bill is indeed listening carefully enough to notice the radical implications that I see in Douglas. "If even one dollar is carried around in your picket or deposited into a checking account and not instantly spent, the equality cannot hold." (Ryan) While Douglas says cash credits shall "at any moment" be equal to consumer prices, he was not of course suggesting that dividend and price adjustments would have to be carried out minute by minute. If the adjustment is monthly, then a month's cash credits would have to equal that month's consumer prices. If everyone showed up on the first day of the month to spend their entire paycheck plus dividend, goods would prove short; but taking the month as a whole, the equation would work. "The business of a modern and effective financial system is to issue credit to the consumer, up to the limit of the productive capacity of the producer, so that either the consumer's real demand is satiated, or the producer's capacity is exhausted, whichever happens first" (Ryan quoting Douglas) Good quote. Says the same thing I am saying. If people did NOT spend a month's credits in the month, the equation would still work because the goods would still be on the shelf. It would just send a message to production to slow up. It is not a question of the consumer's not spending his cash credits at all but of spending them more slowly, which means production can slow up, generating fewer new prices, which means the consumer won't need his credits replenished so quickly. (If some of the goods left on the shelf should perish, their prices would have to be deducted from dividend.) I would stress in the quote the words "whichever happens first." When the consumer's real demand is satiated, a modern and effective financial system will not supply him with more money, for him to invest. Or as I put it last time, the dividend "doesn't make us richer than our desire to consume." Or as I put it to Campbell, "The equity in capital production that the community wants and needs is precisely a claim to the consumable goods produced by means of the capital goods." This also came up in our argument against Kurland. We don't need a democracy of producers. "Prices are regulated (no free market)" (Ryan) Actually, you'd have market prices one degree removed. That is, you'd have market wages and salaries, with prices mathematically calculated from those. "There are no stock or bond markets (no free enterprise)." (Ryan) "Does this mean that no one could save up their money and then use it to set up a business producing a new product?" (Thompson) When money comes in and goes out without friction, you will not NEED to save (i.e., do without) in order to set up a business. Nor will you need to appeal to absentee owners to finance you. Business will be all the better for being owned by artists of industry who have their hands on the process without having to answer to a stockholders' meeting. ". . . a movie theater with one hundred seats, representing productive capacity. How many tickets do you distribute for each performance to ensure that productive capacity is fully utilized?" Good question. Suppose a ticket is good for any show, not just for a single performance, and there is one show per day. You issue a 700 tickets for the first week, and 560 are used (80%). 140 tickets are still out there to be used for another show. If we assume this to be a consistent trend (i.e., real demand for movies is satiated), then by the rule of Whichever Happens First, you should reduce the days you show movies by 20% and let the projectionist go home. And for the second week, you'll only issue 420 tickets, because 140 are still out there. I realize, Bill, that this is not what you have ever considered social credit to be. I think, though, that you will find it worth pondering. Michael Lane Triumph of the Past ____________________________________________________________ Get advanced SPAM filtering on Webmail or POP Mail ... 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