[Jessop] Does the stock-pile of Fiats in a
railway yard necessarily imply shortage of
buying power, or can it merely reveal an over-estimation of the potential
market? I have noticed here that when one person produces a successful line,
twenty others immediately jump in and overcrowded the market.
buying power, or can it merely reveal an over-estimation of the potential
market? I have noticed here that when one person produces a successful line,
twenty others immediately jump in and overcrowded the market.
I�m not an �unbeliever� when it comes to the
imbalance between Price and
Demand (purchasing power), but we do need to avoid things that can be
contradicted. When all those have been eliminated, we may have a convincing
argument.
Demand (purchasing power), but we do need to avoid things that can be
contradicted. When all those have been eliminated, we may have a convincing
argument.
I can't really answer
that Jessop, and I don't think we can until we try out the Social Credit
theories in practice.
All this is of course
enormously more complicated today than in CH Douglas' times, because we now have
an enormously successful massive & diverse marketing/advertising industry,
which can create new 'needs' (you could call it 'manufactured greed')
almost as easily as can banks invent new
'money'.
I have to get back to
the interest issue again. I think the recent mails from experienced
Social Crediters - other then Bill Ryan- give good information. As a
(still :) inexperienced Social Crediter I simply see, that whatever the
specific accountancy measures may be used to officially balance the
ledgers, after banks have collected this 'interest tax on
production/building/manufacture' (without representation :) they do then
not go ahead and send equivalent profit-sharing 'interest dividends' to
ordinary consumer families to return what has been taken away,
but use it to provide more credit to facilitate more production
capacity still.
At the retail end stand
the family members who themselves had to part
with substantial 'mortgage interest taxes' for building their family homes,
with incomes thus reduced unable to afford the prices already
inflated from the interest being paid by businessmen. (Reminds me
of that saying, "they get you coming and going"). And so the little
Italian Fiat cars remain unsold. (Jessop, you may be correct and
maybe they should not have been maufactured at all, but the money for new
investment is available, while suffient money for purchasing is not being made
available, unless of course people borrow and pay yet more interest
again).
Like yourself I am not an
unbeliever, but I think Bill does no more see the forest for
the trees, or the trees for the forest.
I suggest we simply start
with simple trial and error methods. Since centralized banking is a monopoly,
and since the money they create/lend only gains real value after the community
actually develops/manufactures/builds those assets, the community itself
should set the level of interest rates based on comparable reasonable profits
made by industry. Social Credit governments can look at historic examples
of where this has been done, both in democratic and command
economies, while being aware of and trying hard to avoid previous
pitfalls.
While dividends could be
sent to labourers already displaced and those whose jobs are being made
redundant as technology and conservation reduces their need to
work, lets initially look and see what happens when the old
excessive burden of 'interest tax' is removed from the balance sheets
of entrepreneurs, and from the shoulders of those who build their own
homes?
Naturally, Social Crediters
would always look for ways to reduce unnecessary work, and not subsidize
new 'make work' full-employment schemes.
Without the 'money making
monopoly' raising the cost of investment and reducing consumer incomes
through excess profits from interest, sufficient purchasing power may
occur 'naturally'. If and where additional supplementary money/dividends can be
distributed without causing inflation, then this could again be implemented step
by step on a trial and error assessment basis - Always remembering the idea
is to free people of involuntary work, and set them free to create the things
they really need/want/want to do.
Regards,
Ekky
Irion
From: <[EMAIL PROTECTED]>
Wednesday 25 Jun 2003 4:27 am, Ekky
wrote:
> can anyone show me that there is an accumulation of un-purchased goods in
> the world? Also, are there any statistics to show that the proportion of
> �unemployed� is any greater now than, say, the period immediately before
> the Industrial Revolution? (Jessop). Just a couple of examples:
> In the EEC there used to be big agricultural surpluses. This produce was
> bought up by the governments and stored in vast refrigeration halls etc..
> to keep prices at the check-out high. Now attempts are made to
> pay/subsidize farmers to leave fields lying fallow, or money is paid to
> them for not using artificial fertilizers. A trade union friend told me
> already a decade ago that there was twice the capacity to produce cars than
> what could be sold. Down the road from where I lived was a railway yard
> storing thousands of imported small Italian Fiat cars for years until they
> rusted. Sometimes strikes in the car industry are the only time when such
> overproduction halts for a while.
----------------------------
Does the stock-pile of Fiats in a railway yard necessarily imply shortage of
buying power, or can it merely reveal an over-estimation of the potential
market? I have noticed here that when one person produces a successful line,
twenty others immediately jump in and overcrowed the market.
I�m not an �unbeliever� when it comes to the imballance between Price and
Demand (purchasing power), but we do need to avoid things that can be
contradicted. When all those have been eliminated, we may have a convincing
argument.
Jessop.
> can anyone show me that there is an accumulation of un-purchased goods in
> the world? Also, are there any statistics to show that the proportion of
> �unemployed� is any greater now than, say, the period immediately before
> the Industrial Revolution? (Jessop). Just a couple of examples:
> In the EEC there used to be big agricultural surpluses. This produce was
> bought up by the governments and stored in vast refrigeration halls etc..
> to keep prices at the check-out high. Now attempts are made to
> pay/subsidize farmers to leave fields lying fallow, or money is paid to
> them for not using artificial fertilizers. A trade union friend told me
> already a decade ago that there was twice the capacity to produce cars than
> what could be sold. Down the road from where I lived was a railway yard
> storing thousands of imported small Italian Fiat cars for years until they
> rusted. Sometimes strikes in the car industry are the only time when such
> overproduction halts for a while.
----------------------------
Does the stock-pile of Fiats in a railway yard necessarily imply shortage of
buying power, or can it merely reveal an over-estimation of the potential
market? I have noticed here that when one person produces a successful line,
twenty others immediately jump in and overcrowed the market.
I�m not an �unbeliever� when it comes to the imballance between Price and
Demand (purchasing power), but we do need to avoid things that can be
contradicted. When all those have been eliminated, we may have a convincing
argument.
Jessop.
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