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Message 336
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| Subject: | Re: [socialcredit] Swanwick Principles | | Date: | Monday, December 6, 2004 23:43:20 (+0000) | | From: | Timothy Carpenter <timbeau_hk @........uk>
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Re: [socialcredit] Swanwick Principles
Hi Bill.
1. Although I have seen discussions wishing to discount the influence of consumer credit, if (as) people were paid before goods were sold right down the line would this not close the gap significantly? Would it not be possible to use credit at zero interest to bridge the gap even further at point of sale?
I raise this as...
3. Unfortunately “Beckham’s rule”^ will almost certainly kick in and render large sections of the workforce not only idle, restless and frustrated but demanding ever greater ‘social dividend’ . Once they become a sizable majority then a government could get in who will create more dividend than practicable and bankrupt the nation while the strivers will abandon the country. Is there some other way to inject liquidity into the market without giving away ‘money’ which will almost certainly be resented and taken for granted?
I can see that exporting has been used to find a home for output and I agree with you that this cannot be relied upon if one considers the global village.
^ = Beckham’s rule is when rules and systems introduced to control behaviour alter it so that the original purpose of the system is distorted, bypassed or neutralised or it encourages the wrong sort of behaviour, e.g. High charges and low fines encourage non-compliance. Payments and fast-track housing to unmarried mothers increases the number of unmarried mothers.
Rgds
Tim
On 6/12/04 7:57 pm, "william_b_ryan@yahoo.com" <william_b_ryan@yahoo.com> wrote:
1. That the cash credits of the population of any
country shall at any moment be collectively equal to
the collective cash prices for consumable goods for
sale in that country, and such cash credits shall be
cancelled on the purchase of goods for consumption.
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--------------------------------
The key phrase here that alerts us to the proper
interpretation is "at any moment." It is from
calculus and refers to the instantaneous measurement
of rates of flow. The context is retail sales.
Prices (in the way that Douglas uses the term) do not
mean actual sale prices but the flow of accounted for
costs of the totality of production to the point of
retail. Cash credits (in this context) refer to
effective demand concurrently flowing to the point of
retail from consumers. He is saying that the flow of
costs and the reciprocal effective demand shall be
equal. Contrary to the orthodox assumption (Say's
Law) they do not automatically equal now. They are
consciously made equal in the Social Credit program
through the consumer dividend and retail discount
paid to the credit of consumers. Remember, that
without the consciously applied Social Credit
adjustments, effective demand tends to fall in
respect to the costs of production for two reasons:
1. With labor displacement (an increasing ratio of B
to A) purchasing power (in the form of salaries,
wages and dividends) is tending to fall in respect to
the costs of production being impressed to the point
of retail; and 2. Spending from consumer income for
retail goods and services is tending to fall in
respect to consumer income with increasing wealth
(decreasing "propensity" to consume). The first is
addressed through the consumer dividend. The second
is addressed through the retail discount. These
should be thought of as macroeconomic accounting
adjustments rather than "funny money" schemes.
-
2. That the credits required to finance production
shall be supplied, not from savings, but be new
credits relating to new production.
----------------------------------
--------------------------------
He is referring to saving from income that has been
costed into production. New production means
increase to the flow of production. A constant flow
of new goods is not new production in this context.
In this respect, new production is presently financed
by new credits relating to new production through
conventional loans. The problem is that these new
credits cannot be amortized from income that is
falling in respect to the spending of these new
credits. In respect to producers that income derives
ultimately from sales over the retail counter. The
solution is to implement programs that sustain sales
such that sales remain proportionate to the costs of
production through time. Orthodoxy would do that
through the export market, which Social Credit
regards as irrational in that it is unsustainable.
Moreover, such a program requires that real goods be
exported in exchange for foreign credit instruments
used merely to close the "gap" between domestic
"prices" and "purchasing power." The gap is more
rationally closed through the domestic "production"
of credit instruments distributed through the
consumer dividend and retail discount. Such a
program would contribute toward the more efficient
division of labor between the nations, enabling them
to more closely approximate their natural comparative
advantages to the benefit of all.
-
3. That the distribution of cash credits to
individuals shall be progressively less dependent
upon employment. That is to say that the dividend
shall progressively displace the wage and salary.
----------------------------------
--------------------------------
This is actually happening erratically and
inadequately now (pension plans, mutual funds, etc.)
The Social Credit program would rationalize this
natural process.
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http://www.geocities.com/socredus/compendium/swanwick1924.txt
http://www.geocities.com/socredus/compendium/
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