Bill, This is a very helpful exposition on A+B
Keith Wilde ----- Original Message ----- From: <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Wednesday, April 02, 2003 12:14 PM Subject: RE: [SOCIAL CREDIT] seminar on "municipal social credit" > I again invite discussion of Michael's "municipal > social credit" idea archived at > http://www.geocities.com/socredus/lant-03-27-03.txt > which could help us to resolve in our minds not only > what is and what is not social credit, but derive > practical proposals for the implementation thereof. > > From the "observations" section of Michael's paper: > > "1. Ultimately, there are only two factors of > production, man and nature. Man takes the materials > of nature and works them up into more useful forms. > He invests his labor, and labor fully describes the > cost of production." > --- > > Perhaps in a financial sense; certainly not in a real > sense. There is the matter of depletion of natural > resources that any reasonable scheme for reform must > take into account. > - > > "4. In a money economy, labor is measured by payments > to individuals ("A" payments). Therefore, we can > analyze the cost of any consumer good or service as a > simple addition of payments to individuals over the > time involved in production. Whenever such payments > are reimbursed from one company to another (e.g., the > carpentry shop buys lumber), that is a "B" payment, > which represents "all costs to date." If all stages > were performed by one company, there would be no "B" > payments; but the cost would be the same--payments to > individuals over time." > --- > > The A + B theorem is perhaps the most abstract > concept I have ever encountered. My criticism here > of Michael's rendition above is intended to be > constructive. The theorem does not provide the basis > for analyzing the cost of any specific consumer good > or service over time. It looks at the flow of "price > values" in the aggregate being passed to consumers as > compared to the flow of "purchasing power" to > consumers in the aggregate. Plotted as curves on the > same chart with time being the horizontal axis, the > "purchasing power" curve will be seen to be falling > as compared to the flow of "price values" with labor > displacement. The divergence between the curves is > consequently "exponential" in respect to time, which > translates into "debt" that is increasing > exponentially to production. That divergence > represents distortion to the structure of contracts > and is false information flowing back to > entrepreneurs in competitive markets. Debt is > brought into proportionality with production > erratically through time by what are tantamount to > accounting adjustments. Markdowns, bankruptcy, etc. > which are quite disruptive. Social credit seeks to > rationalize the process through the dividend and > compensated price. > > > > > _____________________________________________________________ > Get 25MB, POP3, Spam Filtering with LYCOS MAIL PLUS for $19.95/year. > http://login.mail.lycos.com/brandPage.shtml?pageId=plus&ref=lmtplus > > > ==^================================================================ 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 ==^================================================================
