<**>So the government will print more money (or
create it in other ways) and give part of it to
consumers hoping or expecting that the consumers will
use it to pay their debts ("national dividend").<**>
-------------------
It wouldn't be government as government but perhaps
it would be an independent public agency. Ideally it
would be the central bank. It is not inconceivable
that the banking system would do it on its own
initiative without government prodding, because it
would be in their own best interest to do so. The
idea is not for consumers to pay their debts although
they may do so from their credits that are theirs to
spend as they like on whatever they like. The idea
is to equate the flow of "prices" (A + B) flowing to
the point of retail with credit flowing in the
direction opposite from sales into consumption,
thereby proportionately offsetting the costs of
production. You do that by augmenting consumer
incomes and subsidizing prices.
--
<**>The government would also give part of the new
money to retailers in exchange for reducing their
prices to consumers...<**>
--------------------
Again, not the government as such but the national
credit account that would have to be affiliated in
some way with the central bank. It is not "in
exchange" for reducing their prices but would
effectively lower prices in real terms. It is a
fixed percentage of the individual retailer's gross
sales. The percentage would be the same for all
retailers.
--
<**>it would lend part of the new money to businesses
to finance new production.<**>
--------------------
No loans are contemplated from the national credit
account for either production or consumption. It is
not in the banking business. Its sole function is to
prudently grant credits to consumers or to the
benefit of consumers at the point of retail.
--
<**>Would you also make a law against buying consumer
goods on credit and/or against investors financing
production by borrowing not new money but existing
money?<**>
--------------------
Of course not in either case. Wally's answers in
this regard reflect his fundamentalist Christian
aversion to debt. "Neither a lender nor a borrower
be" is how Benjamin Franklin put it. Western
Canadian social credit had a strong connection to
fundamentalist Christianity. The founder of the
Alberta party was a prominent radio evangelist who
served as Premier until his death in 1943. In Quebec
the movement had a strong Roman Catholic following
that elected twenty or thirty federal
parliamentarians. In England the movement had strong
support from "High Church" Anglicans (those who like
ornate vestments, chanting, incense who prefer to be
called "Anglo-Catholics"), including for a time the
Archbishop of Canterbury and also the Dean of
Canterbury, who served as Treasurer of the Social
Credit Secretariat until his defection to Stalinism,
whence he became infamous in history as the "Red
Dean." He was an interesting but eccentric character
who was the last known clergyman to routinely wear
gaiters, the street attire of nineteenth century
Anglican bishops.
--
<**>if you were hired as an agent to implement the
policy, how would you decide whether a firm should
receive the new money or not?<**>
--------------------
Essentially, the program is limited to the point of
retail. Except for some minor requirements for
record keeping, etc., it is contemplated that all
retailers would participate.
--
<**>How would the agent decide how much to give to
each firm (or consumer)<**>
--------------------
The dividend is equal to each resident, man, woman
and child. The retail subsidy is a straight
percentage of actual sales that would be the same to
all retailers, much like a sales tax in reverse,
except it isn't given as a tax credit but as a cash
credit. There is no connection between the national
credit account and the taxing authority. If costs
flowing to the point of retail are running ahead of
sales, the dividend and subsidy are increased. If
sales are running ahead of costs, they are reduced.
--
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