ECONOMIC FALLACIES

Otago Daily Times, Issue 21997, 5 July 1933, Page 11

ECONOMIC FALLACIES

TO THE EDITOR. Sib, —Your correspondent " Critic," in your issue of Saturday, proves himself so infatuated with the wonders of the present money system that he fails to see the artificial limits imposed.. So thoroughly has he purged his mind of the terrible idea that money can have any relation to commodities that he has failed to retain any idea of the primary object of money, the facilitating of exchanges. It is with goods and services the public is chiefly concerned. It is these it wishes to exchange. Why can people not sell their good; and buy what they require? Their customers have no money, for money can only be created as a debt to the banking system. The banking system cannot finance consumption. Thus we see an exchange which would have been possible under a barter system rendered impossible under our nineteenth century system. Douglas is an artist who desire 3 to construct a money system that will deliver the goods and services where, when, and as required. Economics is a science; it is not concerned with what might be, or what ought to be, but only with what is. Because the economist's research is limited to what is, and ignores what might be, he is apt to find himself off his subject when a totally different system is being discussed. Douglas supporters refuse to be held within such narrow limits and are determined to have a system which is capable of taking full odvantage of this age of plenty. Possibly the Douglas system will offend some economic rules, but then the purpose is not* to play the unpleasant game of "Beggar my neighbour," but simply to feed the people.—l am, etc., A. G. M. July 4.