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The expanded version of Swanwick principle # 2, as
printed in (I believe) the second edition of 'Warning Democracy', and as
reproduced on the NZ Social Credit Ass'n's website states:- "That the
credits required to finance production shall be supplied not from savings but
from new credits relative to production, and shall be recalled only in the
ratio of general depreciation to general appreciation."
I believe it's been established previously
that in the first and third editions of 'Warning Democracy' the last part has
been omitted, and the quote ends 'relative to new production', as it
appears in the original rendition. I don't recall now if it was ever
determined why there was a change, and then a change back. Does anyone
know?
Michael opines that the "national dividend" be used
only to purchase 'consumer goods', and not 'stocks and bonds'. How is it
to be determined just 'what' the 'national dividend' in the hands of each of us
as recipients will be spent on?
There is nothing I've seen in Douglas that
distinguishes 'money' received from the 'national dividend' from any other
'money'.
It isn't of the nature of a 'Prosperity
Certificate', for instance. Nor, under what might be called 'normal'
circumstances, where control over 'credit' wasn't being contested between two
'governments', would it be in a tangible form restricted in what it could be
used for. Does it not seem feasible that Douglas, in the expanded version
of Swanwick # 2 above is referring to a macro-economic concept "the ratio (over
the whole economy) of general depreciation to general appreciation", with
ALL 'money' being analogous and concerned only with 'flows', not with what each
individual who gets a 'national dividend' spends it on?
If I used my 'national dividend' to purchase
'stocks and bonds' held by someone else, is it not conceivable that the seller
might be using the money received to then purchase 'consumer goods'?
What's changed? If I used my 'national dividend' to purchase capital
stock, say when a firm makes an intial public offering, how would this differ
from my using my 'earnings' to do the same thing? Does not Swanwick # 2
simply encompass the changes in 'flows' at the macro-economic level so that
the 'natioanal dividend' and 'compensated price discount' can be adjusted in
future accordingly?
Joe | 
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