|Subject:||[socialcredit] Re: productive capacity|
|Date:||Friday, August 5, 2005 06:16:48 (-0700)|
|From:||William B. Ryan <w_b_ryan @.....com>
For the Douglas perspective on productive capacity I
recommend reading Chapter X of *Credit-Power and
Democracy,* and Chapter II of *Control and
Distribution of Production.* I will forward
photocopies of both chapters in PDF format to anyone
who requests. Fair Use is claimed.
The following is from *Control and Distribution*:-
I invite discussion.
It must be obvious that the real limit of the rate at
which something representing purchasing-power could be
issued to the _public_ is equal to the maximum rate at
which goods can be produced, whereas the 'taking back'
through prices of this purchasing-power should be the
equivalent of the fraction of this potential
production which is consumed.
Let us imagine that wages, salaries and dividends,
added together, were issued via the productive
industries at a _rate_ representing the maximum
possible production of ultimate products, and actual
consumption was only one quarter of potential
production. Then, clearly, the community would only
have exercised one quarter of its potential demand.
But the whole of the _costs_ of production -- the
issues of purchasing-power through the agencies of
wages, salaries and dividends -- would have to be
allocated to the _actual_ production as at present,
and if we charge the public with the whole cost of
production their total effective demand is taken from
But if we apply to the ascertained cost of production
a fractional multiplier equal to the ratio of actual
consumption to potential production, then we take back
in prices that portion of the total purchasing-power
which represents the actual energy draft on the
productive resources of the community and the price to
the actual consumer would be, in the case above
mentioned, 75 per cent less than commercial costs.
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