| Subject: | [socialcredit] Re: productive capacity--Lane | | Date: | Sunday, August 7, 2005 09:18:19 (-0700) | | From: | William B. Ryan <w_b_ryan @.....com>
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"(2) future, or potential, consumer goods and services
in the form of capital goods and services."
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The credit that Douglas was talking about includes a
lot more than existing capital goods and services that
could more productively be utilized. That's the old
"full employment" mindset. In the Douglas perspective
it's knowledge how to do things, for example, and
knowledge builds on knowledge when we do things,
accumulating with "compound interest," as he put it.
In the excerpts I've archived at
http://www.geocities.com/new_economics/productive_capacity/douglas-chapII.txt
and
http://www.geocities.com/new_economics/productive_capacity/douglas-chapX.txt
you can perhaps see the difference in perspective
between Douglas and Keynes. Both would utilize
effective demand as independent variable to drive
economic expansion, but with Keynes it's driven by
government spending as determined by bureaucrats,
whereas with Douglas it's consumer spending for things
consumers have personally determined they want and
need.
The specific technique he talks about in the excerpts
is the "fractional multiplier" applied to the point of
retail predicated on actual sales into final
consumption. If the retailer has zero sales he gets
zero credit from the National Credit (or Capital)
Account. If his products and services are in actual
consumer demand and he has actual sales his credit
from the Credit Account is proportional to his sales.
The effect is to increase the general rate of profit
in the market economy; the further effect is to reduce
the rate of interest to the entrepreneur in that
profit becomes the source of funds for investment, in
service of consumers.
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--- Triumphofthepast@aol.com wrote:Subject:
[socialcredit] productive capacity
Date: Friday, August 5, 2005 15:02:22 (EDT)
From: Triumphofthepast <Triumphofthepast @...com>
I comment on the four paragraphs Ryan copied us today.
The economy is a consumer production system, and
capital production is merely an early stage of
consumer production. To put it another way, current
production consists of (1) current, or actual,
consumer goods and services, including capital goods
and services used up in the process, and (2) future,
or potential, consumer goods and services in the form
of capital goods and services. If (1) represents 1/4
of current production, the public should buy it at 1/4
of the cost of current production.
Michael
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