(Martin wrote:-) Yes, Joe, I sent that paper on Soddy out more for
his discussion of the "J curve", which I think is another way of looking at
A+B, rather than for adopting his ideas holus bolus.
There are more ways than one to skin a cat, and Douglas's price discount
is the neatest way of balancing production with demand, without
demanding unnecessary work from anyone, that I know of - a definitely
better alternative.
(Joe replies:-) I agree. I've copied a
short extract from the "J curve" below, with my comments in 'green'
regarding one thing that concerns me.
" If production is to be increased, a period of
time has to go by in which more effort is put into the system by
consumers, before the products `in the pipeline' emerge at the other end. If
this increased effort is financed by new credit - say an expansion of the
money supply by a bank loan, then the result is an initial period of inflation
- a greater supply of money is chasing a supply of goods that has not
increased. More than that, this increased money supply is chasing a
supply of goods that is actually diminished by the amount of resources
diverted to creating the Permanent Wealth needed to sustain the new rate of
production. "
Maybe I'm not looking at this correctly, but IS
there normally an actual diminishment of the supply of goods that
consumers would buy by diverting resources to create the 'Permanent
Wealth'? Certainly in times of war this would seem to be so. But
what about in times when there is already unused productive capacity
to provide both raw materials and finished products for both 'capital' and
'consumer' production? As there just about always seems to be.
When the 'Titanic' was constructed, was the
supply of consumer goods made from steel or any of the other products
used in its making actually diminished? Steel that might
have been used that way, yes. But would it have been
used that way, or at all? Would there have necessarily been
any more food grown on the farms of Northern Ireland if those
constructing the 'Titanic' had not been employed at Harland &
Wolfe?
Joe
Re: [socialcredit]
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