the nation with the lowest price level...Obviously,
if one nation implemented Social Credit, all others
would be unable to compete with it in the
international markets."
(Wally:-) "A social credit economy would not seek to export
merely to receive credits to enable its consumers to
consume what it can produce, since those credits
could be created internally through the dividend and
discount." (Bill Ryan replied:-) --this is true.
(Bill Ryan continues:-) Here's the thing--no matter how much you lower the
domestic price level, the predatory foreign producer
will always sell at a lower price, thereby
progressively bankrupting domestic producers one by
one as he augments his productive capacity. He can
do this because he can recover most all his costs of
production from his own captive workforce. He can
drop the price of what he sells into your market to
whatever low level it takes to capture your market.
Since he has recovered most of his costs of
production from his own workers, whatever low level
he sells into your market is pure profit to him. So
job number one for social credit to work there have
to be controls limiting imports.
The problem that social credit faces is the problem
facing every social reformer, as Curtiss Priest
already informed us. If you force the domestic
producer to clean up his smokestack, you drive
production overseas where there are no such
restrictions. If you force the domestic producer to
maintain a safe working environment, you drive
production overseas where producers have no such
requirements. If you force the domestic producer to
pay a decent wage, you drive production overseas
where there is effectively slavery, and so on--if
your market is open to the foreign producer.
Job number two for social credit to work there will
have to be capital controls. At the very least you
will have to limit the negotiability of the social
credits so that they can only be used to purchase
domestic production. But then you still face the
dilemma that by doing so you free up the already
existing credit to go overseas either for the
purchase of consumer goods or investment, negating
much of the beneficial effect of the social credits
by draining purchasing power from the domestic
economy. If you try to compensate for the capital
flight by disbursing still more social credits, you
have the recipe for inflation that will accelerate
without limit.
Hello All,
Could anyone please tell me where, specifically, in his vast volume of writings, Douglas addressed the above 'two jobs'.
Joe Thomson
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