Yes that’s true. However this article is much more inclusive and comprehensive than most recent thinking. It still lacks an essential aspect, namely the discount mechanism which will keep the economy from running off the rails with inflation. We also have to understand that we’re going to need an increasingly abundant dividend and discount #1 to counter businesses’ abilities (and competitive need) to lower their wage rates so much that even with a (basic) dividend and discount the over all income level would tend to devolve toward near austere levels and #2 in order to get the small to medium sized business community to “buy into” such policies and ally themselves with any such movement they must be awakened to the fact that both the individual and small to medium businesses suffer from inadequate demand and as Robotics and AI are just actually starting….without an increasingly abundant dividend and discount the system still remains unstable and will go down. In fact better to proactively have an abundant dividend and discount percentage thus you go from being behind the curve to being in front of it…and the market for consumer finance and finance in general are downsized wrecking Finance’s dirty little game of extortion on all levels of society and the system.

Finally, resistance is important, but focused resistance on the actual culprits is even more important. Finance and the huge conglomerates with global reach that are allied with finance are those culprits…but not the garden variety “mom and Pop” small to medium sized businesses that could be our allies in economic and monetary change…are not. So hopefully their website becomes financial and global corporate resistance instead of Popular Resistance which is a little too fuzzy.

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A.:  There is no such thing a ‘debt free money,’ as any reader of Soddy and others ought to know.

A.

Me:  Adrian,

Soddy was smart, but he did not perceive the scarcity of individual incomes in ratio to costs/prices that is the reality for every enterprise (the micro economy) and which “everyness” also makes it a macro-economic problem to be solved by costless policies like the dividend and discount mechanisms. He also apparently did not realize the importance of the digital nature of the money system where a scarcity of $5 in individual incomes in ratio to $10 of costs/prices is resolved with $5 of direct individual income and any tendency on the part of any or even all of the system to inflate prices when seeing more demand coming is reconciled by a percentage discount to retail prices.

Utilizing these two mechanisms is what will prevent the regressive economic forces from being able to harp on and on about inflation and so devolve the system back to dominance by finance.

I’m not trying to invalidate Soddy or yourself, just trying to integrate all factors and realities.

A.:  Whether scare or abundant, dollars, or rubles, or whatever, are a claim upon existing resources. A dollar is a certificate in hand (or electronic entry in someone’s account) which is a legally binding demand for goods and services when exercised in any market. Whoever issues that certificate (unit of currency) is issuing an IOU upon the goods and services available in the market.

A.

Me:  Okay, I’m not disputing that. Money IS debt as in a loan or as an exchange/a call upon goods and services….but if there is a moment to moment scarcity of individual incomes in ratio to costs/prices (and it IS that way by cost accounting convention which rules every enterprise) then the market is never going to be stable, the economy will remain austere and way overly onerous, perpetual growth and monopoly will be the only recourse for every business and history will continue to repeat/severely rhyme….unless a sufficient universal dividend equates that ratio and a sufficient discount keeps it that way and actually reverses the problem with price deflation.