| Subject: | [socialcredit] the Titanic | | Date: | Tuesday, December 20, 2005 09:06:33 (EST) | | From: | Triumphofthepast <Triumphofthepast @...com>
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"If we spend, say four years in building the 'Titanic', we distribute incomes to workers and suppliers for that four year period, so withdrawing other goods and services from the market, [without putting any product of value on the market]. If financed by new credit, that is an inflationary thing to do. If financed by savings, it simply means that consumer buying power in total has been redistributed from the investor to the workers and suppliers, with no inflationary effect." (Martin)
I think the example would be better with the words in brackets taken out. If no food is being produced, there is nothing to feed the workers with. If food is being produced, new credits can distribute it. That is what new credits are for. If food is produced and we need the Titanic built, people will work for food (new credits as financing). If food is produced and we don't need the Titanic built, people will eat for free (new credits as dividend). It isn't true that we can't build the Titanic until we have a four years' supply of food stored up. Nor would it be desirable to do it that way. That is, it's not financed from unconsumed goods from a prior period ("personal savings"), but it is financed from goods that exist. That is not the same thing.
Michael
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the Titanic
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