| Subject: | Re: [socialcredit] The Mechanics in a Few Words on the Financial Workings of Social Credit | | Date: | Tuesday, April 8, 2008 10:27:17 (-0600) | | From: | Martin Hattersley <jmartinh @....ca>
|
Hi, Jamie -
I apologize, and stand corrected!
Martin Hattersley, 5929-189 St.,
EDMONTON AB CANADA T6M 2J1
Phone & Fax: (780) 483-5442
e-mail <jmartinh@shaw.ca>
----- Original Message -----
From: "Jamie Walton" <eurojamie@gmail.com>
To: <socialcredit@elistas.com>
Sent: Monday, April 07, 2008 4:28 PM
Subject: Re: [socialcredit] The Mechanics in a Few Words on the Financial
Workings of Social Credit
Hi Martin,
Good paper. It seems a lot of Soddy's ideas are along similar lines to much
of the 'New Economics' ideas of that time.
There is one glaring error/omission in it: Ernest Rutherford was a NEW
ZEALANDER!!
Cheers,
Jamie.
On 02/04/2008, Martin Hattersley <jmartinh@shaw.ca> wrote:
>
> Hi, Robert -
>
> I have always regarded Douglas's proposals as an incomplete solution to
> the
> problem he identified, leaving the existing banking system unchanged, but
> instituting countermeasures to mitigate its ill effects.
>
> The problem identified, particularly I believe in the "Monopoly of
> Credit",
> is that when bank credit (new purchasing power) is created to finance
> industrial expansion, the wages paid to those who carry out the expansion
> will be spent before new products resulting from this expansion come on
> the
> market. Hence a period of inflation (more purchasing power chasing an
> existing quantity of goods, or even chasing a supply of goods that has
> been
> reduced by the physical demands of the expansion).
>
> When the goods produced from the expansion finally reach the market, the
> incomes that should buy them have already been spent. Consequently, the
> "Can
> produce but cannot sell" phenomenon we are all so familiar with. Orthodox
> economics tries to solve this with even more capital expansion, with
> public
> and private debt, and with wars (which provide employment and distribute
> incomes without requiring payment for products).
>
> Douglas proposed a "Just Price" mechanism, whereby a National Credit
> Office
> would determine the extent of the need for purchasing power in the economy
> to cover this "gap", and cause it to be inserted into the economy either
> by
> a subsidy to reduce prices, or a "Dividend" to all citizens, so balancing
> supply and demand.
>
> I believe that when Douglas first identified the way in which typical
> businesses create more costs to be charged into prices than the wages,
> salaries and dividends they pay out to potential consumers, he did not
> think
> of the many businesses which (because they are engaged in capital
> production) distribute incomes to potential consumers without placing
> consumer goods on the market - which, of course, is what creates the "gap"
> in the first place. Consequently, he envisaged a National Dividend far
> greater than it would in fact be credible to anticipate. This has
> bedevilled
> the whole Social Credit movement ever since.
>
> I attach a paper I gave some time ago on the thoughts of Professor Soddy
> (who sympathized with Douglas, without agreeing with him) on the whole
> subject. And, of course, there's no reason why a National Dividend could
> not
> be paid to all citizens, through some device such as Henry George's
> "Single
> Tax", or the taxation scheme that Soddy proposes in this paper. This would
> reverse capitalism's existing technique of "enclosing the commons" and
> leaving the proletariat with nothing to live on but what they can earn in
> exchange for their labour.
>
> Martin Hattersley, 5929-189 St.,
> EDMONTON AB CANADA T6M 2J1
> Phone & Fax: (780) 483-5442
> e-mail <jmartinh@shaw.ca>
>
>
> ----- Original Message -----
> From: "robert searle" <dharao4@yahoo.co.uk>
> To: <socialcredit@elistas.com>
> Sent: Tuesday, April 01, 2008 7:52 AM
> Subject: [socialcredit] The Mechanics in a Few Words on the Financial
> Workings of Social Credit
>
>
>
> Dear All,
>
> I know I am probably asking the impossible but
> here goes.
>
> Can anyone explain in simple English, and in a few
> words the financial workings of Social Credit (ie. the
> Dividend, Just Price,et cetera).
>
>
> Ofcourse, I understand what they are but HOW DO THEY
> WORK? Presumably a certain about of debt-free money is
> involved along with some earned money via taxation
> etc....
>
> R.Searle
>
>
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