Subject: Re: re-market socialism
From: wpc-AT-clyder.gn.apc.org (Paul Cockshott)
Date: Mon, 29 Jan 96 23:19:42 GMT


Burns
-----
Paul, in the Schweickart model payments can certainly be
made through checks drawn on banks, but private savings
are not lent for production but for consumer and housing
loans.  Funds for productive investment are, as Justin notes,
not raised via savings, but via taxation, which funds are
then allocated by investment agencies to enterprises who
then pay the next round of taxation.  This tax (on capital
assets) replaces interest and is itself not used for
consumption.
Paul
----
This is inconsistent on two counts.
1. Savings are the excess of reciepts over expenditure, if
the personal sector has net savings, these can not be
absorbed by redistribution within the personal sector. They
must be lent either to enterprises or the state.
2. If we include deposit accounts held by enterprises, which
you admit will exist, among the debts of the banks, this
implies that they are to be secured on loans against consumption.
This implies a net financial surplus of the enterprise sector
and financial deficit of the personal sector, which not only
contradicts the prior assumption of net personal savings, but
if true implies an unproductive use of the financial surpluses
that do exist.


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