|
Hi Bill:
Although I'd be more than happy to discuss Joseph's
text, from which you snipped a small portion, I would prefer if you would
explicitly answer the question I posed, because I'm not clear as to what you
mean by "quasi-steady state".
I asked:
"Do you mean A2=B1? Where A2 is
income from capital production, and B1 is B costs at the point of
retail?"
And you responded:
The A1+B1, A2+B2 analysis is present is Joseph's
text as well as others, but since you say he does not consider "steady state",
or "quasi-steady state", I must assume that you have not answered my
question.
Is steady state where A2=B1? If not, then
what do you mean by "steady state", or "quasi-steady state", and what are the
conditions which bring it about?
Thank you,
Jim
----- Original Message -----
Sent: Thursday, December 28, 2006 4:46
AM
Subject: Re: [socialcredit] Douglas: 1923 Ottawa -
Part 1
> (Bill) "As to your second point, the assumption of
> the
graph with straight lines is quasi-steady state
> expansion."
>
> (response) Do you mean A2=B1? Where A2 is income
>
from capital production, and B1 is B costs at the
> point of retail?
> -------------------------------------------------
>
-----------------------------------------------
>
> I believe this
is from A. W. Joseph's 1934 essay,
> archived in full text at
>
http://www.geocities.com/socredus/compendium/joseph/
> and which I've excerpted below. Joseph does
not
> consider either steady state or quasi-steady state.
> A2 are
salaries, wages and dividends being paid by the
> firms which are
"producing either capital equipment or
> goods which are
incomplete." A2=B1 if "money in the
> hands of the public is to be
equal to the costs of
> consumable articles produced..."
>
>
I want you to notice that his argument is conditioned
> on what we would
call labor displacement.
>
> "Now modern science has brought us to
the stage where
> machines are more and more taking the place of
human
> labour in producing goods, i.e., A1 is becoming less
>
important relatively to B1 and A2 less important
> relatively to
B2."
>
> But like so much in the theoretical structure of
>
Social Credit, it is very terse, when it deserves
> book-length
treatment. For example, he tells us to
> whom B1 is paid, but to
whom is B2 paid?
> ---
>
> Excerpt from Joseph's 1934
essay:-
>
> We can divide factories into those making
consumable
> goods and those producing either capital equipment or
>
goods which are incomplete.
>
> Let A1+B1 be the costs in a
period to time of articles
> produced by factories making consumable goods
divided
> up into A1 costs which refer to money paid to
>
individuals by means of salaries, wages, dividends,
> etc., and B1 costs
which refer to money paid to other
> institutions.
>
> Let
A2, B2 be the corresponding costs of factories
> producing capital
equipment.
>
> The money distributed to individuals is A1+A2
and the
> cost of final consumable goods is A1+B1.
>
>
If money in the hands of the public is to be equal to
> the costs of
consumable articles produced then
> A1+A2=A1+B1 and therefore A2=B1.
>
> Now modern science has brought us to the stage where
>
machines are more and more taking the place of human
> labour in producing
goods, i.e., A1 is becoming less
> important relatively to B1 and A2 less
important
> relatively to B2.
>
> In symbols if
B1/A1=k1 and B2/A2=k2 both k1 and k2 are
> increasing.
>
> Since A2=B1, this means that A2+B2/A1+B1 =
> (1+k2)A2/(1+1/k1)B1
= 1+k2/(1+1/k1) which is
> increasing.
>
> Thus in
order that the economic system should keep
> working it is essential that
capital goods should be
> produced in ever increasing quantity relatively
to
> consumable goods.
>
> As soon as the ratio of
capital goods to consumable
> goods slackens, costs exceed money
distributed, i.e.,
> the consumer is unable to purchase the
consumable
> goods coming on the market.
> -
>
>
> --- Jim <jschroeder@shaw.ca> wrote:
>
[snipped]
>
>
__________________________________________________
> Do You
Yahoo!?
> Tired of spam? Yahoo! Mail has the best spam protection
around
> http://mail.yahoo.com
>
---------------------------------------------------------------------
>
Some introductory materials to the discussion topic of this list are at
>
http://www.geocities.com/socredus/compendium
> You're subscribed to this list with the email jschroeder@shaw.ca
> For more
information, visit http://www.eListas.com/list/socialcredit
> |
Re: [socialcredit]
Reply to this message
