| Subject: | [socialcredit] phases and a bad example | | Date: | Monday, May 23, 2005 10:39:32 (EDT) | | From: | Triumphofthepast <Triumphofthepast @...com>
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Dear Friends,
I can't blame Tim Knight (5-19) for challenging social credit based on the Douglas example he quotes. Frankly, the example is inadequate. Many of Douglas's examples fail to do justice to the conception of social credit that he verbalized. I consider several of these in "The Social Credit of the Left" (readable at www.alor.org).
Knight's argument is that in the "investment" phase of the example, purchasing power exceeds prices, and in the "production" phase, prices exceed purchasing power, and the two cancel each other out.
The problem with the example is that it does not model any saving of labor. The wages are always the same. We could construct a similar model in phases that would reduce wages at some point. But before we go to that trouble, a little thought will suggest a shortcut. This company's year 1 is another company's year 2 is another company's year 3, and so on. So in a muticompany system, there are no phases. Therefore we can model the saving of labor by simply reducing wages every year -- which means that the investment of some company in the system has borne fruit in reduced hours or reduced personel.
That in turn will reduce prices, but not concurrently. Yesterday's wages become today's prices. Today's wages are less than yesterday's wages. Therefore, today's wages are less than today's prices.
Michael
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phases and a bad e
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