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Comments follow items.
----- Original Message -----
From: John Gelles
To: Money Enough for All ; Post Keynesian
Thought ; Cyberspace Society ; Money Based
on Social Credit
Sent: Saturday, February 15, 2003 8:55
AM
Subject: [SOCIAL CREDIT] Purchasing Power
+
More purchasing power. We may agree that the
current economic system -- which some call production for profit -- creates less
purchasing power when products are produced than is necessary for them to be
sold at a profit.
VB. The deficiency in purchasing power as stated in Social Credit proposals is the result of the incomes generated in any particular production period being less than the prices generated in the same period. That axiom has nothing to do with profit per se. Purchase money debt. We may agree that currently consumer and business debt is created to add extra purchasing power to fill the above need VB. Agreed. The rest of the statement introduces matters that are irrelevant and immaterial and arrive at a false conclusion. A direct dividend from the money-creating authority to would-be buyers. We may agree that a direct dividend could be computed and paid to would-be buyers that would not create any debt on the part of the authority or the buyers. VB. The dividend would be to citizens. Changing the nature of recipients leads to confusion and further unnecessary explanations. it would not create any debt as it would enter the economy outside the normal cost/pricing structure. A direct subsidy to sellers to allow their price to fall below the cost of production as they remained solvent -- even profitable. We may agree that otherwise justified subsidies paid by the money-creating authority could, like the direct dividend to buyers, be paid for without creating a corresponding debt. VB. The use of the word "subsidy" is misleading. It is a rebate not "to allow their price to fall below the cost of production" but to reduce a price at the retail level. As it would come from the same source as the National dividend it would not create any debt. Purpose of the above dividend, subsidy and currently paid taxes. We may agree that the only purpose of taxes paid to the money-creating authority is to prevent inflation. We may further agree that the purpose of the above dividend and subsidy is to prevent deflation, recession, depression and similar effects that follow a deficiency in purchasing power. VB. On taxes I have no comment although I doubt if the statement is entirely correct. The purpose of the dividend is to equate purchasing power with prices together with the rebate to reduce prices and thus increase purchasing power. The rebate with the effect of lowering prices to the consumer is a counter to inflation. It should not be extended to introduce other factors of deflation, recession and depression. VB. The only other comment I will make is that far from having a focus on employment Social Credit philosophy is adamant that employment is a means and not an end in itself and any claim to exalt a means into an end entertains pernicious and dangerous motive or blind ignorance. Social Credit policy does not contribute in any way to such a policy. It is a policy contained in just about any political party in existence and blindly accepted the populace as being valid. ==^==^============================================================= This email was sent to: [email protected] EASY UNSUBSCRIBE click here: http://topica.com/u/?a84IaC.bcVIgP.YXJjaGl2 Or send an email to: [EMAIL PROTECTED] TOPICA - Start your own email discussion group. FREE! http://www.topica.com/partner/tag02/create/index2.html ==^==^============================================================= |
- Re: [SOCIAL CREDIT] Purchasing ower Victor Bridger
- Re: [SOCIAL CREDIT] Purchasing ower John Gelles
