JR: “I realise you think you could handle all that with a discount system but you seem to be blissfully unaware that it would just free up money to increase any inflationary effect elsewhere if there was too much in circulation. Housing market, items from foreign sources, etc.”
Me: The retail product of home builders/home building corporations is a house. If at retail the discounted cost of all of the labor and products for building a house were 50% less than their actual costs due to the discount/rebate policy….how could you have asset inflation? And if you only had to finance $100k for a house that yesterday cost $200k how good is that for the consumer? And if it were a public state or national bank that didn’t have to make a profit finance could be dovetailed into the end of the legitimate economic/productive process at retail sale instead of it being a huge parasitical milstone of additional costs like now.
Imports would be able to participate in the discount/rebate program. Eventually/quite quickly however, they would have domestic competition because if you don’t have to worry about unemployment due to the dividend insuring everyone a virtual middle class lifestyle even if they didn’t do a lick….you could rapidly re-industrialize in the most modern, efficiently productive and ecologically sane fashion possible. The success of the rejuvenated profit making system here would be a great incentive for other nations to implement the same program.
Oh, the commodities markets will just inflate, right? Not if someone creates a rival market that applies the discount policy. It only takes one competitive rival to insure that everyone must participate with a high percentage discount/rebate policy, and as there are many immediate and also numerous “knock on” benefits to the program for both individuals and enterprise….opting in is pretty much a no brainer anyway.