[Rodney Shakespeare] The definition would therefore be "binary full payout of earnings paying the full return (net of reserves for depreciation, research and development." ----------------------
But what is your definition of earnings - earnings - earnings - earnings - earnings? Trying to get you to answer is like pulling teeth. Synonyms: profit, returns to capital. I want to know how you would define it as a matter of accounting.
Definitions are important. The fact that there are many possible definitions does not mean each of them is equally valid. We might define pi to be three but the only proper definition is the circumference of the circle divided by its diameter. If we substitute three for pi in our calculations it is certain we will get erroneous results.
By the way, by allowing for reserves (for anything) you are calling for something other than full payout. Is it impossible for you to see the contradiction? --
[Rodney Shakespeare] I object to your reference to Michael Greaney. You have continually libeled him in a way that was never necessary. ----------------------
Where is the libel in my last post? Are you inferring that my characterization of his views on depreciation is inaccurate? Indeed, where have I ever libeled him? I think you also said I libeled you.
This was from Norm Kurland:
->In your last posting you challenged the proposition that depreciation could be a source of non-wage-based supplemental cash for closing the purchasing power gap within a binary economic system, a system which would also serve to close the gap by expanding the base in society who share supplemental ownership incomes in such production-connected forms as dividends, cash profit sharing and cash productivity bonuses. That purchasing power gap can largely be traceable to the retention of earnings within productive enterprises, a situation that could be avoided if companies (1) paid out fully their pretax profits as dividends to people ready to consume what the economy produces and (2) the nation's monetary authorities and banking system would supply sufficient capital credit to meet the economy's overall needs for economically-feasible new capital formation reflected in the form of self-liquidating leveraged acquisitions of newly-issued equity shares for workers and citizens generally. We also would argue that depreciation could also serve as an alternative to "creating money" disconnected with ownership rights under the National Dividend Plan as advocated by you and other advocates.
In response to your objections to our discussion of depreciation as one possible source of cash for increasing mass purchasing power, I (one trained merely in the law and economics program at the University of Chicago Law School with only a lawyer's understanding of accounting) have asked my colleague Michael Greaney, who is a CPA with MBA credentials) to address your points from his several decades of professional experience... <-
Then from Greaney:
->Further, I agree with...the quoted sections [from Kurland] in your missive, particularly in that, in large measure, I wrote them. <- --
[Kurland from the above] That purchasing power gap can largely be traceable to the retention of earnings within productive enterprises, a situation that could be avoided if companies (1) paid out fully their pretax profits as dividends to people ready to consume what the economy produces... ----------------------
But seventy-three years ago Douglas told the Macmillan Committee that was impossible. I can just see that little pipsqueak Kelso chortling to himself- with a sneer on his face, "What a stupid feller that Mayjer Douglas iz! He almost got it but didn't quite git it. Don't need no nashnil diveedends! Don't need no reetail deescounts! All we got to do is pass a law to make corporations paiout their profeets!"
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