Joe--many thanks for your detailed and laborious exposition. -- Wally
Your say that a National Dividend is your [Party] policy and that it is written into your Constitution. Yet you say that you have opposed the "universal income idea" which is "socialistic" and the presence of which in your policy has "embarrassed" you. The Social Credit National Dividend IS intended to be universal. It is the proposal for a guaranteed basic (or annual) income that is not universal and is NOT a Social Credit proposal. The National Dividend goes to all citizens as an unconditional right by inheritance. The guaranteed basic income is politically determined and goes only to those designated by political policy. Do you understand the difference? It is fundamental.
As to the Compensated Price, I think that Joe has done a competent job in clarifying what it is and how it would be implemented. It would be applied to a transaction and therefore to all items in the transaction. I don't know where you got the persistent notion that it would be calculated separately for each individual item sold. We certainly would not have any army of bureaucrats poring over prices of every individual item of consumer goods in attempt to determine its individual "Just Price." You should also be aware that the taxation system, alone, would be drastically simplified, thereby cutting an existing massive bureaucracy. I think that you should be aware that a system of price discounts was implemented quite practically and successfully even under the existing financial regime to keep down the price of foodstuffs in Australia during the last Great War. Unlike consumer bank credit issued today as debt which does not cancel production costs but passes them on as charges against future production, the consumption credits proposed by Social Credit create no new debt and become available to the producer to cancel his production costs and production loans. Which do you think is most likely to be a contributor to inflation?
We are, in fact, looking toward a "Just Price" for every article--for all articles. But not determined individually. We are talking about a ratio to be applied to all production which subsumes all items, obviously. In any case, you still are not willing to "risk" implementation of the Compensated Price because of the fear that it will cause massive inflation despite the restraints placed on inflation by competition, the pressure on any vender to enter the arrangement when his competitors are subscribing to the arrangement, when in appropriate circumstances 'there is a limit on profit on turnover as Joe has described, and the producer who violates his undertaking faces decertification and removal of the benefit of belonging to the program. The escalation of prices which you describe below did not occur in a Social Credit dispensation but in a Social Debt system and the two cannot be compared as equivalent in effect. Anyway, in final analysis, you apparently do not support basic Social Credit policy as stated. You are not willing to risk it and you do not propose any alternative so by inference, you must be satisfied with the existing system. This seems to raise some rather obvious questions, does it not?
Dutifully but wearyingly patient
On 6-Jan-09, at 1:34 PM, John G Rawson wrote: