Chapter 12. Responsible distribution of the communal money
- This chapter's goal.
- Investment credits.
- Consumption finances.
1. This chapter's goal.
Economics is the word used especially to indicate the just distibution
of communal riches, whether it is obtained through the invention of
money with communal solvency (credits and finances), or obtained positively.
We will not stop to consider in this chapter the principles on which
this economical activity is based under an etymological point of view of
We exclusively consider the technical bearing of this distribution,
so that technicians and specialists can study it more deeply.
As we have already said, communal riches will be distributed in two
well separated forms: credits and finances. We will now describe a possible
political-technical organization of this distribution of credits and finances.
We must only remember that, should production surpluses not be enough
to fill communal needs of credits and finances, established through democratic
law by the geo-political society, it will then be necessary to use as an
alternative sources, the unique tax of social solidarity, made up
by a percentage calculated according to these needs.
2. Investment credits.
Investment credits are calculated, globally and sectorially, on their
respective surpluses of investment production in each economic accounting
Investment credits will be granted:
To all the companies wishing to effect an investment in order to increase
their production effectiveness and who have not enough buying power. They
will have to show technical and commercial guarantees of the feasibility
of the submitted plan, but no material guarantees will be requested.
To all the would-be businessmen submitting a project with a guarantee of
success and without the necessary resources to start nor to obtain a bank
Even if investment credits are granted by the geo-political society, trading
banks will act as middlemen. They have the human and technical means, and
it is not necessary to double them. Banks therefore will be charged
by the geo-political society of the study of the investment plans for the
creation of new companies submitted. They will judge their credibility
and decide whether the requested credit can be granted, under their sole
For this task the banks will charge a normal interest -therefore communal
credits will pay an interest double than the free banking interest-. Banks
will be fully responsible in case of insolvency of the company to which
a credit was granted, through a system of joint partial corresponsibility
of every employee granting each credit, of all the employees granting credits,
and of the very bank. This system is very effective in all the great trading
banks with well paid qualified employees, personally responsible of every
operation effected by each of them and all of them responsible when the
firm directly cannot answer for the whole of its part of loss.
Summing up, conditions for a communal investment credit, completely
different from a bank loan, will be the following:
The beneficiary will need no guarantee, neither from himself nor from third
parties, on actually existing properties or capitals. His only guarantee
will be the productive-technical ability of the company.
The granting of a credit will mean designating a trustee who will control
the government of the company and the use of the credit, in the name of
In the first period, let us say of three years -a delay which is generally
considered necessary for any new production equipment to reach a normal
efficiency- no interest will be paid. After this starting period, interests
will be paid at double banking interest. Half of this interest will
be for the bank and the other half will be for the communitiy treasury.
There will be no fixed clause for the credit devolution; but until it is
paid back interests will be paid double and the bank trustee will stay
in the company.
The main scope of communal credits to investment is to promote the creation
of private company riches, according to the principle of highest production,
high quality and minimal effort and risk. For this reason, the main principle
for granting these credits will be that of technical-productive effectivity
shown by the company.
Through communal credits it is also possible to favour different sorts
of company education, so that these credits can become very important elements
of economical policy, by helping some sort of companies which the geo-political
society considers more convenient or more interesting.
Therefore, after fulfilling the necessary condition of production efficiency,
the preferential lines of credits for the companies filling given conditions
will be established: selfmanaging companies, optimal size companies, etc.
3. Consumption finances.
Communal consumption finances are money not to be returned -that
is, free- to be used exclusively in consumption.
The volume of the money hoard which can be granted to communal consumption
finances will depend from the consumers production surpluses actually present
in the market (production surpluses in the hands of retail trade and industry).
The main scope of distributing communal finances is to cause
the disappearance of poverty and social margination because of lack of
money, granting to all the members of the geo-political society a dignified
For this reason, the principle which controls finances distribution
is not productive effectiveness, nor social ability, but the objective
consideration of the minimal vital needs of consumption of all the population,
which must be granted on the principle of a total communal solidarity.
The consideration of the minimal vital consumption needs of the population
distinguishes inside it some groups well differentiated with respect to
their consumption possibilities.
In the first place we have consumers-producers: they are utilitarian
who make their consumption through a double origin buying
Private salary origin, a remuneration of their active participation
in the productive-utilitarian society;
Financial communal origin, as a consequence of the general statute
and eventually of the utilitarian statute, which we will see later.
In the second place we have simple consumers, who do not belong
to the utilitarian productive society, but rather to the utilitarian
consumer society. Simple consumers are:
Professionals and liberal collectivities, who have only buying
power for financial communal consumption, according to the liberal
And people without a profession and families (with no reference
to the private income of each of their members) who have also buying power
for financial communal consumption according to the general statute.
The different needs of these two main groups -and of the sub-groups to
be included there- will be shown by the existence of different financial
statutes. These will be basically the following four:
General statute: it will be applicable to everybody without any
consideration of the utilitarian-consumers' category involved, as it will
grant to every individual and to every family the vital needs equal to
all necessary all along their life, even more so under all sorts of unfavourable
situations (illness, accidents, invalidity, inability, death, etc.).
Utilitarian statute: for producers-consumers, that is for utilitarian
professionals. Because they belong to the productive salary market, they
have a buying power for consumption. Therefore the utilitarian statute
will only consider helping utilitarian professionals under given unfavourable
circumstances: unemployment, strike and lock-out.
Liberal statute: for consumers with a liberal profession, that
is those persons who have a profession in the service of society without
being privately paid by the market. Because of this, liberal professionals
would have no buying power, and the geo-political society will provide,
through the liberal statute, salaries and social solidarity to professional
budgets in order to allow a worthy living and to develop their profession
with all the necessary means.
Also liberal collectivities will be maintained by liberal-financial
budgets -including what today is called «social security» and
«public services», education, medical assistance, health, communications,
public works,... including State and justice. This means that all these
services will be completely free for all the population.
Mixed statute: it is half way between utilitarian and liberal
as it is meant for a very special group of professionals: craftsmen.
Unemployed utilitarian professionals who want to become craftsmen, besides
actual craftsmen, will fall within the mixed statute, which will allow
them to improve their craft and to sell on the market their production,
besides receiving financial help from the community.
All these financial statutes will include the allocation of:
Monthly social solidarity salaries to all individual and family beneficiaries;
In the case of liberal professions, performed individually or in a team,
the necessary ordinary and extraordinary social solidarity budgets;
In the case of groups, associations and liberal institutions, the necessary
ordinary and extraordinary budgets for their normal continuity and effectiveness.
The total financial monetary hoard of the geopolitical society in each
accounting year will be subdivided in two parts according to law:
One for the ordinary liberal budgets and social solidarity salaries,
according to the statutes;
One for the extraordinary budgets and allowances.
To calculate the amount of the salaries and budgets of the first part a
simple point system can be used. To every individual salary and ordinary
budget a given number of points can be attributed, which will be fixed
politically by a constitutional law. Therefore, this part of the financial
monetary hoard will be divided by the total number of points representing
all individual salaries and ordinary budgets. This will give the value
of a point, and therefore the monetary value of the different social solidarity
salaries and of ordinary budgets.
It is evident that the point value will increase only as a consequence
of the increase of the financial monetary hoard of the geo political society,
that is of its productive-economic prosperity. However, it might happen
that this prosperity, this financial hoard, decreases. In this case, what
cannot be done is to reduce the amount of the salaries and of previously
granted ordinary social budgets.
This amount will be held through a temporary utilization of the
accounting guarantee represented by the daily free positive balances of
current accounts at sight, whose amount is socialized as a communal saving
(see chapter 9).
However, the general solution of the problem of general deficit depends
from the social solidarity tax in an amount vitally necessary to society.
the many meanings attributed to the word «economics», we will
take up here that of «responsible distribution».
Nomos = just distribution.
Oikos = «common good of the polis or geo-political society».
Xenophon adopted the meaning of «common good of the family community:
the house», as this was the very restricted subject of his study.