>>519496407
> A factory has also another aspect, which we call the financial aspect
> It gives people the power to buy (wages, dividends which are power to buy) but it is also the cause of prices or values, financial, I mean financial values
> It pays workers, and pays for material.
> What it pays in wages and dividends stays fluid, as power to buy, and this power is less, per forza, damn blast your intellex, is less than the total payments made by the > factory (as wages, dividends AND payments for raw material bank charges etc
> and all, that is the whole, that is the total of these is added into the total of prices caused by that factory, any damn factory and there is and must be therefore a clog > and the power to purchase can never (under the present system) catch up with prices at large,
> and the light became so bright and so blindin’ in this layer of paradise
> that the mind of man was bewildered.
> CANTO 38 - Ezra Pound
Ezra Pound in 1918 found an explanation for all the terrible things that were happening in the world in the aftermath of the first world war.
Ezra was so gungho about C.H. Douglas' social credit system to the point where you'll find references to Douglas' work in the Cantos and other writings.
See Canto 38, above, Pound presents a poetic exposation of Douglas' A+B theorm, this is, the idea that under the existing financial system, costs and prices are generated faster than incomes are distributed.
Right now, the only way we can fill that gap is basically to rely on someone to go into debt. So, the government might go into debt or businesses or consumers via consumer loans.
Douglas' whole idea was that:
> this leads to unrepayable debt
> this leads to financial crises
> this leads to inflation, poverty, servility and so forth
It would make a lot more sense, it would be a lot more honest and functional if we simply monetize the gap with debt-free credit and distribute it to consumers, either in the form of a dividend or in a discount.