Monday, October 5, 2009

Monetary Reform - Need and Method (excerpt 1 (1939)) con't

a communities true_wealth consists of the amount of useful goods and services which its united population can produce and enjoy - the two fundamental factors of eco_nomics are production and distribution - in order to pour real_wealth into the community a maximum production of useful commodities must be encouraged in every possible way - every new useful enterprise must be provided with capital as freely as possible - the moment a new enterprise opens, it employs labor, brings wages, and begins pouring real_wealth into the community in the form of needed goods (the enterprise belongs to all who works in it); the enterprise stands as a community asset, real tangible wealth; free money loaned for useful and constructive purpose - secondly, the distribution of all available goods and services must never be allowed to be hampered through lack of purchasing power in the hands of the people - to prevent this, the community should always issue and put into circulation sufficient money to allow people to absorb every commodity and service available, lest badly-needed goods go to rust, moth, or rot on warehouse shelves -- to effect an equal balance of purchasing power with production the community would need to know two things: firstly, the community stock and production of goods and services available over a given period; secondly, the total amount of wages or purchasing power put into circulation during that period - then if stock and production together exceeded the communities purchasing power, the community would only need to put sufficient additional money into circulation to enable all goods and services to be absorbed and used profitably without waste.

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