Re: Economic Recovery

["John Gelles" <indexed-savings@xxxxxxxxxxxxx>]

Jack Hirschfeld advises us, relative to the Bush promise

of jobs, (and, perhaps, Democratic candidates promises of

"jobs, jobs, jobs"), that in the present very modest  recovery

period:

"...corporate profits have claimed an average share

of 46% of total income growth in this recovery,
compared to an historic average of 26%."

 

Once again (although it may rare) Jack and I are fully

agreed on what the problem is: The profiteers are

screwing the workers ? and it's high time we did some-

thing to stop the war against workers that is depressing

wages to favor business. When this happens democracy

itself is stifled ? conditions get worse and the center

cannot hold.

 

My remedy is to redefine money, (or at least enough of it),

to make room for very high wages that reflect potential

productivity gain ? to redefine it to be a measure of pur-

chasing power and not just a measure of debt.

 

So long as all money is a measure of debt, we cannot

create debt-free money to reflect the real wealth that

workers can produce with the help of modern industry.

 

If we added purchasing power to match the incremental

wealth that workers are able to produce, we could raise

wages to their proper high level without raising price

(or lowering price on account of excess output for the

low-wage market we suffer.)

 

I do  not know if Jack will ever agree, but the remedy

we need is not to lower profits. It is to raise wages and

workers purchasing power to reflect high productivity

at relatively constant affordable prices.

 

This requires direct creation of more money, debt-free, by government.

 

The government can then subsidize workers extra incomes

? or otherwise put into circulation by spending and lending

enough purchasing power to ensure growth, higher wages

for the same profit, and real prosperity for working class

Americans.

 

Around the world, every nation could do the same.

 

I recommend to all, in sight of Jack and myself, that they

spend some time at    www.monetary.org      At that

sight they may want to join and obtain a copy of The

Lost Science of Money.   I believe this can be done

for  $48  ?  I, myself, shelled out $63 for the book

and am not sorry.  Anyone can also read for free on

that site the ideas necessary to know how we must

redefine money if things are ever to improve.

 

Stephen Zarlenga is the author ? with some luck we

might follow Zarlenga's lead and attack the problem

Jack has call to our attention.

 

John Gelles

.