| Subject: | [socialcredit] saving and production | | Date: | Thursday, May 31, 2007 10:58:05 (-0700) | | From: | william_b_ryan <william_b_ryan @.....com>
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"My quibble is simply this, how 'That credits required
to finance production shall (I note the imperative, I
mistakenly quoted 'should') be supplied not from
savings but ....' can be translated as 'savings can be
used to finance some of production'."
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In Douglas' theory the term "production" means
strictly a rate of production. You might recall that
Swanwick referred to the financing of "new"
production. In the Douglas theory new production is
an increase to the rate of production for the economy
as a whole. Continuation of production at the current
rate is not new production, but turnover that might be
accommodated with a fixed quantity of money or credit.
New production in the sense that Douglas used the term
is not even now financed from abstention from
consumption in the macroeconomic sense, but new
credit. It probably always has. The social credit
program would simply rationalize this natural process.
-
"You have also answered one of Bill's comments to me,
in pointing out that savings reduce purchasing power.
That was the basis of my comment that Douglas, at the
time, would have wanted to reduce one of the factors
that he had identified as causing a deficiency in
purchasing power."
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Douglas suggested several reasons why there was a
"gap" between "prices" and "purchasing power," an
increase to the rate of saving being one of them. His
solution to these purely financial anomalies was the
rationally introduced national dividend and retail
discount--as ongoing accounting adjustments--such that
sales match the costs of production being impressed to
the point of retail.
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saving and product
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