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       So that has to be part of it, you had better  change  your  operating
    basis, you had
       better do something to  change  the  operating  basis,  because  that
    operating basis
       lead you into an emergency so you sure better change it.

    3. Economize.

    4. Then prepare to deliver.

    5. Part of the Condition of Emergency contains this little line-you have
    got to
        stiffen  discipline   or   you   have   got   to   stiffen   Ethics.
    Organizationally when a state
       of emergency is assigned supposing the activity doesn't come  out  of
    that
       emergency, regardless of what caused  the  emergency,  supposing  the
    activity just
       doesn't come out of the emergency, in spite of  the  fact  they  have
    been labelled a
       state of emergency, they have been directed to  follow  the  formula,
    they have been
       told to snap and pop and get that thing straightened  out,  and  they
    are still found
       to be goofing, the statistic is going down and continues to go  down,
    what do you
       do? There is only one thing left to do and that is discipline because
    life itself is
       going to discipline the individual.

       So the rule of the game is that if a state of  emergency  is  ignored
    and the steps are
       not taken successfully then you get an  announcement  after  a  while
    that the
       condition has been continued and if the condition is continued beyond
    a specified
       time, why that's it, it has to walk forward into an Ethics matter.




                              NORMAL OPERATION


    1. The way you maintain an increase is when you are in a state of Normal
    Operation
       you don't change anything.

    2. Ethics are very mild, the justice factor is quite mild, there are  no
    savage actions
       taken particularly.

    3. A statistic betters then look it over carefully  and  find  out  what
    bettered it and
       then do that without abandoning what you were doing before.

    4. Every time a statistic worsens slightly, quickly  find  out  why  and
    remedy it.

    And you just jockey those two  factors,  the  statistic  bettering,  the
statistic
worsening, repair the statistic worsening, and you will find out  inevitably
some change
has been made in that area where a statistic worsens. Some change  has  been
made, you
had better get that change off the lines in a hurry.




                                  AFFLUENCE


    1. Economize. Now the first thing you must do in Affluence is  economize
    and then
       make very very sure that you don't buy anything that has  any  future
    commitment
       to it, don't buy anything with any  future  commitments,  don't  hire
    anybody with
       any future commitments-nothing. That is all  part  of  that  economy,
    clamp it
       down.

    2. Pay every bill. Get every bill that you can possibly scrape  up  from
    any place,
       every penny you owe anywhere under the sun, moon and  stars  and  pay
    them.

    3. Invest the remainder in service facilities, make it more possible  to
    deliver.

    4. Discover what caused the Condition of Affluence and strengthen it.