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Message 5281
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| Subject: | Re: [socialcredit] Question regarding A + B | | Date: | Saturday, March 15, 2008 08:13:15 (-0800) | | From: | Joe Thomson <thomsonhiyu @....ca>
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(Bill Ryan wrote:-) I've described the "gap" between "prices" and
"purchasing power" as resulting from a falling ratio of A to B in the
ratio, A/A + B. But A includes dividends as well as wages and salaries. As
wages are decreased with advancing technology and organization,
could not prices be decreased and dividends increased from increasing
profits such that the ratio remains constant, and hence no "gap"?
(Joe asks:-) Maybe I'm way off base in trying to follow what you're saying
here, Bill, but it seems to me that there still would be a "gap". Doesn't
the product actually have to sell before there is any profit booked that
could subsequently be distributed as dividends?
If wages are decreased where is the effective demand for the product going
to come from? Would a consumer be able to borrow based solely on the
expectation he could repay his spending through his share of future
dividends? Assuming, of course, that he holds any shares in the first place
in Companies that do pay dividends.
Even if prices are reduced too, aren't current wages only a 'part' of
prices, and wouldn't there still be 'past' costs that have to be recovered
in them? Would the increase in volume be enough to cover those by itself?
Or wouldn't there still need to be an augmentation to "A" not costed into
prices in the nature of a ND or CPD?
Like I say, maybe I've got this all wrong.. If so, perhaps you could take
us through the whole accounting process in a little more detail.
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