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Subject:[socialcredit] The Use of Social Credit
Date:Monday, February 11, 2008  11:00:52 (-0800)
From:william_b_ryan <william_b_ryan @.....com>

This is from Douglas' address from 1935, entitled,
"The Use of Social Credit":-

"...the first objective of Social Credit is to provide
sufficient money to meet these charges which occur in
ultimate products as the result of the existence of
industrial assets. One of the methods by which it is
proposed to do this is to take the charge for
industrial assets out of prices and pay it direct to
the owner of the assets. Instead of taxing him in
money for the possession of industrial assets we
should, on behalf of the consumer, pay him for the use
of them. That is not essential to the theory, but it
is a quite possible way of dealing with the situation.
The real beneficiary, it should be noted, is the
consumer, who gets lower prices."

Essentially, in my opinion, what Douglas is suggesting
here is that depreciation charges are to be reimbursed
to the firms in the form of credits from the National
Credit Account, as depreciation is incurred through
the conventions of accounting.  The firms' incomes are
thereby increased as expense is charged against gross
income, thereby increasing the firms' rates of profit.
 Presumably, competition between the firms will reduce
prices, though not necessarily dollar for dollar,
charged to final consumers in the process.

I am interested in having any other interpretations
that anyone might have of this quotation from Douglas.


     
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