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Subject:Re: [socialcredit] Question regarding A + B
Date:Wednesday, March 12, 2008  15:44:24 (-0600)
From:Martin Hattersley <jmartinh @....ca>
In reply to:Message 5279 (written by william_b_ryan)

Bill -

I don't see the "gap" the way you do.

I see it caused by the inflation caused by the delay between (bank financed) 
expenditure on capital goods, leading to payment of wages, salaries and 
dividends to employees and investors which are spent at a time when no new 
goods are being placed in the market as a result of their efforts, and the 
later time when those goods are placed for sale on the market, at a price 
which includes these capital costs. The deflationary effect of such a gap is 
to some extent deferred by consumer credit (including government borrowing 
and mortgage lending in particular), but the current upset in consumer 
credit markets indicates that this is not a permanent solution.

The public has been robbed by inflation in the first instance, but is not 
compensated for the subsequent deflation when costs charged into prices of 
what has now reached the market have to be liquidated. This is something 
that could be achieved either by a compensated price or a National 
Dividend - though the latter would not reverse the inflation that has 
already taken place.

I don't see that dividends from business have very much to do with the 
situation.

Incidentally, I am currently re-reading Buckminster Fuller's "Critical 
Path", and am fascinated by his concept of a future where those currently 
employed in unnecessary work required by our wasteful paper pushing 
capitalist system are laid off, saving an immense amount of fossil fuels and 
human waste of time, and the world's work is thereafter done by those who do 
it for the joy they get out of it. Everyone gets their income from a 
dividend based on an evaluation of the world's capacity to deliver. 
Interesting thought!

Martin Hattersley, 5929-189 St.,
EDMONTON AB CANADA T6M 2J1
Phone & Fax: (780) 483-5442
e-mail <jmartinh@shaw.ca>

----- Original Message ----- 
From: <william_b_ryan@yahoo.com>
To: <socialcredit@elistas.com>
Sent: Wednesday, March 12, 2008 2:36 PM
Subject: [socialcredit] Question regarding A + B


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"?


     
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