Posted on: August 21, 2014 by Oliver Heydorn

Category: Social Credit Views

Why Social Credit is not Socialism

     One of the chief misapprehensions under which newcomers to the subject often labour is that 'Social Credit' must be some form of socialism because, after all, the phrase encompasses the word ‘social’. So that there may be no confusion, let it be made clear that in spite of the appearance of the word ‘social’ in ‘Social Credit’, Social Credit is not only not socialistic but decidedly anti-socialist.

     As I explain in my book Social Credit Economics, the economics of Social Credit rejects the doctrine of class struggle, rejects the collectivization of the means of production, rejects the centrally planned or command economy, rejects the welfare state (with its mechanism of redistributive taxation), and rejects disordered and excessive forms of economic regulation. In what way, then, can Social Credit be classified as socialistic? On the contrary, Social Credit stands for free enterprise (personal initiative, the profit-motive, private property, and free markets) provided that these individualistic elements can be properly co-ordinated so as to effectively serve the common good of all individuals in a society. What Social Credit seeks is: "a society based on the unfettered freedom of the individual to cooperate in a state of affairs in which community of interest and individual interest are merely different aspects of the same thing." [1]

     While the concerns that are shared by many socialists are legitimate concerns: poverty, exploitation, gross economic inequalities, environmental degradation, etc., the methods that socialists advocate are, to a greater or lesser extent, ineffective in dealing with these problems. They also tend to engender other problems as the inevitable trade-off: the loss of individual freedom, increased servility, and the centralization of power in overweening government bureaucracies, etc. Social Credit proposes that it is possible, through the type of monetary reform that Douglas had advocated, to deal adequately with the former problems without spawning these other difficulties.

[1] C.H. Douglas, Economic Democracy, 5th ed. (Sudbury, England: Bloomfield Books, 1974), 142-143.

 


Comments

Posted: January 29, 2015

By: Liam

What does Social Credit look like for the man in the street? If you consider that the Canadian GDP (i.e. the realized price of everything sold that year) is about $1.2 Trillion and the US GDP is about $14T and then consider that the statistics organizations of both countries report total incomes (i.e. effective demand money with which to meet the price) of $770 Billion and $8T respectively, that is a gap in purchasing power of 43%. How does this relate to us all as individuals? It is an annual per-capita shortage of purchasing power amounting to about $17,000. This means that every adult over 18 could be given a guaranteed income of $2000/month and retail goods merchants could give consumers a 20% sales credit at the cash register; all this while causing neither inflation nor deflation. How do you pay for this? You make it up out of thin air – just like bankers do! In the US Constitution, Article 1, Section 8 specifically provides for it. The not-so-subtle difference between how our economy works now and how it would work under Social Credit? There would be no interest debt tied to this new money and thus no need for repayment of either principle or interest. This would effectively dismantle the welfare state and radically lower taxes and this would put even more money in the pockets of consumers. It would also loosen the hold that big money holds over our political system with their lobbying and campaign contribution “bribes” that corrupts and undermines our political democracy.

For those who presume that this debt-free issue of money would result in inflation, consider this. Producers need to borrow their capital costs so the loaned money is effectively the creation of money. As production is sold, the first place producers apply this revenue is to settle the loans as they impact profitability; but the loaned money is destroyed the instant the bank receives it. Consequently the economy becomes short-circuited by exactly this amount – principal and interest. The debt-free issue of money in the form of guaranteed-income dividends and sales-credit compensated price fills the gap caused by this short circuit. The bottom line is that this is a FUNDAMENTAL FLAW in our cost accounting systems that must be recognized and fixed. Social Credit is the easiest fix. There have been others proposed though. Consider Nobel Lauriat Professor Fredrick Soddy and his National Economy proposals that also recognize this gap and offers a less equitable and effective remedy. Bill Still, who ran as Libertarian Party Presidential candidate in the last US election is an advocate of Soddy’s method.

If this – i.e. prosperity and less government control over our lives - is something you the reader would like to see happen in your lifetime, maybe it is not only in your best interests to learn more about Social Credit, but it is your duty to yourself and your family.

Posted: January 30, 2015

By: lisa hicks

Are you familiar with the Bradbury Pound being promoted by the UK Column? http://www.ukcolumn.org/bring-back-the-bradbury

Posted: March 29, 2015

By: Lou

The realistic solution to the world's financial woes has been known for a long time and communicated to elected legislators but no changes appear imminent. Why?
Who benefits from the present state of affairs?
They must be made known and this will bring added problems to the 'freedom movement' because these nefarious creatures will fight to the death to protect the status quo.
So be it!
Social Credit policies must be applied in the most peaceful way possible BUT they must be applied if Christian Culture is to endure.

Posted: March 11, 2017

By: ModernFathers1867

"Guaranteed Basic Income" is making political headlines almost simultaneously in early 2017 in Canada and around the world. Ontario is implementing a pilot project on it. Finland is doing it for its unemployed. Visionaries are claiming it's sweeping the world. I've read that to do it, you must have full-scale socialist planning. In your view, is the sudden upsurge of news on incoming "Guaranteed Basic Income" a slide toward full-scale socialism and planning, or if not, what else is going on? Because it doesn't seem to be Socred that's behind this upsurge.

One example from the Leftist Huffington Post:

http://www.huffingtonpost.ca/news/basic-income/

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