The GAP
Ask yourself why we should have such poverty in the land of plenty when technology has brought such incredible production leverage in agriculture and industry. If we run our economy efficiently, we need less than 10-20% of our workforce to produce all of our nation's goods and services. There are primarily two problems with our economy.
1. The first problem is a fundamental gap or shortage of purchasing power. We call this The GAP.
2. The second problem is unjust usury.
The GAP
The "GAP" is a core concept from an economic theory called Social Credit (developed by C.H. Douglas), explained by Liam Allone here and here.
The GAP represents a chronic shortage of purchasing power (see the diagram below): The total price of all goods on the market is always higher than the total amount of money people have to buy them.
Imagine you run a bakery. To bake a batch of bread, your total cost to produce it is $100.
-
Cost A (Wages): You pay your workers $40 in wages. This is money that goes straight into the pockets of everyday consumers.
-
Cost B (Overhead): You spend $60 on flour, electricity, insurance, and equipment etc. This money goes to other businesses, not directly to consumers.
To break even, you must sell the bread for $100.
Here is the problem: You sell the bread for $100, but you only pay $40 to the workers who want to buy it, so they are still $60 short.
That $60 shortage is The GAP. Remember, this represents ALL wages and ALL overhead in the aggregate.
The workers must do without, and the sellers can’t sell; they both lose out.
We usually fill this GAP using bank debt (credit cards, mortgages, and business loans). We borrow money from private banks to buy the things we can't afford with our wages alone, leading to a mountain of endless debt. At the local level, our solution involves issuing a local currency to bridge the gap so buyers can buy the full production of the seller.
Unjust Usury
We have a monetary system designed for plunder, a debt-money system in which almost all money is loaned into circulation as debt by the private Federal Reserve and banking system, which must be paid back plus interest. Since there is always more debt than money, the debt is mathematically unpayable and will compound to astronomical amounts. The $38 trillion of national debt is not due to congressional overspending, it is a design feature.
From video Designed for Plunder - Abolish the Federal Reserve, 12:20, Richard Walbaum