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Welcome to the AMI non-AI Parity Page
This AMI Welcome Page discusses Par Economy. It aims to broaden our understanding of monetary reform in relation to the marketplace and prices for raw materials. Just as we have learned that money does not come from nature but from law, so do markets. The marketplace is not a creature from nature but an agreement in custom and law.
In any country, if the domestic price of raw materials, at the first point of sale, is not high enough to cover the costs of the labor and other resources to produce any particular consumer wealth, then the economy as a whole will not generate enough earnings to operate solvently. Since the United States has a higher standard of living than most countries, importing similar, less expensive products, lowers domestic labor rates. Cheap imports diminish the home price, thus lowering National Income (NI). [When NI is too low, debt is required for consumption and investment.]
Par economics is an ingenious insurance-like program that was implemented by the federal government for eleven years between 1942 and 1953. This program ensured the farmer a market price between 90% and 110% of the price necessary to keep the economy out of debt. This AMI Welcome Page aims to illustrate the viability and wisdom of such an arrangement. Thus agricultural production at a parity price is the foundation for all the other sectors of an economy, including the government. This results in an economy that strives to practice equitable exchange for everyone: what we call a par economy.
If you are interested in exploring this topic, please explore these pages and ideas.
~The Par Economy Team
A Short History of Parity in the U.S. Economy
Compiled by Sue Peters
Since the beginning of our country and throughout the 19th century, analyzing economic phenomena was part of the citizen conversation. There were trial-and-error attempts to work out the economic system. In the last half of the 19th century, farmers started to organize for public money (not bank-created money) and for economic treatment of their labor that would allow them to get out from under the bank debt. They organized the Greenback Party, the Greenback-Labor Party (which included support for industrial workers), and the Farmer’s Alliance, which became the Populist Party.
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The Second Coming of Parity in the American Economic System – Parity, we hardly knew ya
Compiled by Joe Bongiovanni
The weighty national discourse over both what a Parity-Economy is about and whether ‘Parity’ should become a major national economic policy, or not, took place in the halls of Congress amid the turbulence of FDR’s New Deal government mid-to-late 1930s. There, with assembled lawyers, accountants, lobbyists, and advocates present for all sides – this first actual legislating of an American System of Parity Economics into national law was agreed upon. [Agricultural Adjustment Act: ch. 25, 48 Stat. 31 (1933)]
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A Green Parity Economy
Compiled by Sue Peters
Since it is the duty of our government, at all levels, to encourage opportunities for the profitable employment of citizens, the Green Party proposes the following: 1. Creation of a parity economy, without debt to the citizens. 2. Importance of parity prices for US farm production. 3. A Parity Tariff on Imports.
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Parity for the 21st Century: Calculating the Golden Rule
Compiled by Mike Holden
Parity, at its core, is about fairness in valuing a person’s labor in relation to prices, which ultimately sets the dollar’s value domestically. Parity economics was the first discipline to employ “econometrics,” or the application of math and data to analyze the economy’s performance quantitatively. Parity legislation was considered a New Deal-era reform under The Agricultural Adjustment Act (AAA). The par economic system was developed to ensure agricultural commodity producers were adequately compensated for the cost of production. It was found that as producers were compensated at parity, the proper compensation levels were reached throughout the entire economy. Parity is still the law of the land today, but is not implemented.
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