<*>The only societies of which I am aware that receive something that could be labeled a national dividend are those like Kuwait and Alaska, which receive revenue from natural resource wealth "owned by the state."<*>
The *Alaska Permanent Fund* invests the revenue stream from royalties and fees into stocks, bonds, real estate, etc. The Fund pays dividends from the return on those investments. In later years these dividends have exceeded $6000 to a family of four. Alaska is the neighbor of the Canadian Provinces of British Columbia and Alberta. Both elected Social Credit governments for many years. Former Social Credit Alberta Treasurer Ted Hinman helped formulate Alaska's program. Secretary Powell and Administrator Bremer, citing Alaska as the precedent, have proposed something similar for Iraq. --
<*>still others "impose an inflation tax."<*>
Only to the extent inflation is imputable revenue to debtors in general, including governments. No government in any modern economy simply prints money and spends it. --
<*>What is a national dividend?<*>
To strictly answer your question: In social credit jargon, it is cash payments directly to consumers not funded from revenue. In its more complex form it includes cash payments to retailers in subsidy of the prices paid by consumers. That subsidy is made necessary by the falling propensity to consume from increasing income.
In social credit theory, cash incomes are normally falling in respect to the accounted for costs of production that are charged against sales. So, beyond the "first desideratum" of fundamental social welfare, the purpose of the dividend is to close the "gap" between "prices" and "purchasing power," which should benefit the economy as a whole by allowing a stable rate of profit.
The "gap" is caused by what social crediters broadly call "labor displacement," but what "Austrians" would call "lengthening" to the "period" or "structure" of production that comes naturally through time with improvement in process.
The chief analytical tool is the A + B Theorem.
----Original Message Follows---- From: Pat Gunning <[EMAIL PROTECTED]> Reply-To: [EMAIL PROTECTED] To: [EMAIL PROTECTED] Subject: [SOCIAL CREDIT] National dividend? Date: Tue, 28 Oct 2003 09:11:59 +0800
[EMAIL PROTECTED] wrote:
Unlike Keynesians or socialists, we advocate the payment of dividends directly to consumers and let them decide themselves how they will spend it.Does this mean that you advocate laws against the corporate form of enterprise -- i.e., what used to be called the "joint stock company."
I was not referring to corporate dividends but what social credit calls the "national dividend."
Fair enough, although you should realize that the language is a bit strange.
Perhaps you could explain further. What is a national dividend? Is it like the Marxian surplus value or like the welfare gains of production and exchange in neoclassical economics? The only societies of which I am aware that receive something that could be labelled a national dividend are those like Kuwait and Alaska, which receive revenue from natural resource wealth "owned by the state." Most governments get their revenues through direct taxes. Some also get revenues through borrowing in money markets. And still others "impose an inflation tax."
Please excuse me if I do not take the time that would be required to find the answer to my questions in the various writings you and Mr. Klinck (privately) recommended. I looked them over briefly and was unable to find an easy way to relate them to the questions I am asking.
--
Pat Gunning, Feng Chia University, Taiwan;
Web pages on Praxeological Economics, Democracy, Taiwan, Ludwig von Mises, Austrian
Economics, and my University Classes; http://www.constitution.org/pd/gunning/welcome.htm
and
http://knight.fcu.edu.tw/~gunning/welcome.htm
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