Submitted by Banking and Monetary Reform Committee (BMRC)
Contact: Co-chairs: Howard Switzer GPTN, hmsarchitecture@gmail.com, and Mary Sanderson GPWI mhsanderson@hotmail.com
The proposal was approved by the BMRC members under the Committee’s decision-making rules on September 23, 2021.
Authored by the committee. Contact liaison: Rita Jacobs GPMI rjacobs@arq.net
Amendment is proposed to Chapter IV Economic Justice and Sustainability by the addition of a new section O (or another letter designated by the Platform Committee), which would read as follows:
O. Parity Pricing
Introduction
Article 1, Section 8, of our nation’s Constitution lists the powers of Congress. Clause 5 reads in part: “to coin money and regulate the value thereof and of foreign coin…”. Section N of the GPUS platform covers the creation of money, this proposal is about regulating the value of the nation’s money.
Breakdown of our wealth distribution system during the Great Depression called for special measures to kickstart the economy for the benefit of all. In response, Congress enacted legislation, codified at 7 U.S.C. § 602 in 1933 and 1937, in which it declared its policy “to establish and maintain such orderly marketing conditions for agricultural commodities in interstate commerce as will establish, as the prices to farmers, parity prices . . .”
“Parity,” which derives from the Latin “par” or “paritas” meaning “equality,” is defined by Merriam-Webster as used in this context as “an equivalence between farmers’ current purchasing power and their purchasing power at a selected base period.” The New York Times described “parity” as “the price calculated to give the farmer a fair return in relation to the things he must buy.”
A par economy—one based in equality—recognizes that wealth is based upon raw materials in service to human life rather than money. As a result of the legislation in 1937, parity pricing regulated the value of money in the monetary system from 1942 to 1952. By establishing a fair price for agricultural commodities, the nation’s farmers were able to maintain their farms without the necessity of crippling debt. After parity pricing began to fade away in 1952, the pace of losing small farms accelerated according to policy rather than performance.
Congress empowered the Secretary of Agriculture to maintain production research, marketing research, and development projects to regulate commodities in interstate commerce to “effectuate such orderly marketing of such agricultural commodities as will be in the public interest.” Although the policy introduced through this legislation was abandoned in 1952, the legislation has not been repealed, and the Department of Agriculture continues to maintain the records used to implement the policy.
Seventy years of research by the National Organization for Raw Materials has shown that “the health, robustness, and sustainability of the American economy is directly tied to the production of raw materials and the price at which those raw materials first enter into commercial channels. When raw materials enter trade channels at prices in balance with the prices of labor and capital in the rest of the economy, the economy can operate on an earned-income basis with no buildup of public and private debt.” Agricultural commodities comprise 70% of the raw materials that enter the economy every year. Using par prices will regulate the value of money, resulting in constant purchasing power without inflation or deflation.
Because it is not possible to achieve the fundamental goals of social justice and equal opportunity for equal work without a par economy, the Green Party demands implementation of the policies as practiced by the federal government during the 1947-1949 parity price base period. This implementation would include:
1) sovereign United States money issued by Congress, according to the Constitution at Article I, Section 8, Clause 5, drawn or paid into circulation in relation to the production of raw materials, manufactured goods, and services. This provides for the distribution of goods and services in the real economy. Maintaining par agricultural prices will regulate the value of that money, resulting in constant purchasing power without inflation or deflation.
2) the regulation of a parity price for basic storable non-GMO farm commodities so that all costs can be paid, and profit produced without debt, to all sectors of the economy. This par economy allows the flow of money (income distribution) to circulate thru all economic sectors, so that wealth distribution, the flow of goods and services to citizens, can occur without debt, allowing a living wage for all workers.
3) A parity tariff on imports, sufficient to prevent foreign prices from rupturing the price structure of our domestic economy.
Background and Reason for the proposed amendments:
Chapter IV. Economic Justice & Sustainability of the platform includes section N, Greening the Dollar, which is about the public creation of money but does not specify how it is valued or how its purchasing power will be maintained and protected. The committee’s research led us to parity pricing to fulfill Article 1, Section 8, Clause 5 which reads in part: “to coin money and regulate the value thereof and of foreign coin…”. Section N of the GPUS platform covers the creation of money, this proposal is about regulating the value of the nation’s money. A par economy makes it possible to achieve the fundamental goals of social justice and equal opportunity for equal work. The Green Party proposes implementation of the policies as practiced by the federal government during the 1947-1949 parity price base period.
The BMRC thinks this is important because when raw materials enter trade channels at prices in balance with the prices of labor and capital in the rest of the economy, the economy can operate on an earned-income basis with no buildup of public and private debt. This will assure a stable and sufficiently prosperous economy.
References:
https://www.clarityonparity.com/
http://www.normeconomics.com/birth.html
http://www.normeconomics.com/fame.html
https://www.westonaprice.org/health-topics/farm-ranch/parity-and-profits/