The God of the Machine - Tranche 40
Chapter XIX, Excerpt 1 of 3
Credit and Depressions
Money is the only means by which deferred exchanges in goods could be effected without credit. But men give credit, and cannot be persuaded to refrain from doing so, because it is in their nature to do so. By virtue of this in mind, man works through time and space. The impulse is not greed, but the creative and expansive faculty. The added risk is accepted for the sake of quicker and greater extension of power over nature. Dishonesty is never the prime cause of a collapse of credit, but it causes greater injury.
The spot cash system has never been proposed because it calls for no control, no compulsion, no political job or power for the reformer. It confuses the vital issue of profit and affords a pretext to muddle discussion with meaningless phrases such as “production for use, not for profit.” Production is profit; and profit is production. If profit is denounced, it must be assumed that running at a loss is admirable. That requires justification. Profit is self-justifying.
One way non-producers go about destroying a free production system is to persuade men of wealth to endow foundations for “social work” or “economic research.” The arguments sought by such research will be justification of parasitism. It is important to recognize what has happened when credit collapses, causing a “depression.” The energy circuit has broken down. At numerous points along the line, energy is leaking. The breakdown is from internal causes, originating in misjudgment of connections.
Credit and Depressions
Money is the only means by which deferred exchanges in goods could be effected without credit. But men give credit, and cannot be persuaded to refrain from doing so, because it is in their nature to do so. By virtue of this in mind, man works through time and space. The impulse is not greed, but the creative and expansive faculty. The added risk is accepted for the sake of quicker and greater extension of power over nature. Dishonesty is never the prime cause of a collapse of credit, but it causes greater injury.
The spot cash system has never been proposed because it calls for no control, no compulsion, no political job or power for the reformer. It confuses the vital issue of profit and affords a pretext to muddle discussion with meaningless phrases such as “production for use, not for profit.” Production is profit; and profit is production. If profit is denounced, it must be assumed that running at a loss is admirable. That requires justification. Profit is self-justifying.
One way non-producers go about destroying a free production system is to persuade men of wealth to endow foundations for “social work” or “economic research.” The arguments sought by such research will be justification of parasitism. It is important to recognize what has happened when credit collapses, causing a “depression.” The energy circuit has broken down. At numerous points along the line, energy is leaking. The breakdown is from internal causes, originating in misjudgment of connections.
Sadly, viewing your comments on other posts, keeping America up there is downright difficult.
To which it should be added that extending credit exhibits a positive view of one’s fellow man. Yes, I understand verification of the borrower’s financial and credit history, but, it shows the belief that men can be trusted to lead honest business lives, use logic to arrange their lives, and keep their promise to repay.