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HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex


                      HCO POLICY LETTER OF 6 MARCH 1966


Remimeo
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                            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.