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HUBBARD COMMUNICATIONS OFFICE Saint Hill Manor, East Grinstead, Sussex HCO POLICY LETTER OF 6 MARCH 1966 Remimeo Guardian Hat Exec Sees Hat HCO Area Sec Hat Dir I & R Hat All HCO Hats LRH Comm Hat REWARDS AND PENALTIES HOW TO HANDLE PERSONNEL AND ETHICS MATTERS The whole decay of Western government is explained in this seemingly obvious law: WHEN YOU REWARD DOWN STATISTICS AND PENALIZE UP STATISTICS YOU GET DOWN STATISTICS. If you reward non-production you get non-production. When you penalize production you get non-production. The Welfare State can be defined as that state which rewards non- production at the expense of production. Let us not then be surprised that we all turn up at last slaves in a starved society. Russia cannot even feed herself but depends on conquest to eke out an existence-and don't think they don't strip the conquered! They have to. Oddly enough one of the best ways to detect a Suppressive Person is that he or she stamps on up statistics and condones or rewards down statistics. It makes an SP very happy for everyone to starve to death, for the good worker to be shattered and the bad worker patted on the back. Draw your own conclusions as to whether or not Western Governments (or Welfare States) became at last Suppressives. For they used the law used by suppressives: If you reward non-production you get non-production. Although all this is very obvious to us, it seems to have been unknown, overlooked or ignored by 20th Century governments. In the conduct of our own affairs in all matters of rewards and penalties we pay sharp heed to the basic laws as above and use this policy: We award production and up statistics and penalize non-production and down statistics. Always. Also we do it all by statistics-not rumour or personality or who knows who. And we make sure every one has a statistic of some sort. We promote by statistic only. We penalize down statistics only. The whole of Government as government was only a small bit of a real organization-it was an Ethics function Plus a Tax function Plus a Disbursement function. This is about 3/100ths of an organization. A 20th Century government was just these 3 functions gone mad. Yet they made the whole population wear the hat of government. We must learn and profit from what they did wrong. And what they mainly did wrong was reward the down statistic and penalize the up statistic. The hardworker-earner was heavily taxed and the money was used to support the indigent. This was not humanitarian. It was only given "humanitarian" reasons.