Social Credit News

Saturday, 09 August 2014 06:22

Re: "The Costliest Money Mistakes"

Written by Oliver Heydorn
Rate this item
(0 votes)

According to the latest edition of the “Money Minute”, the Royal Bank of Canada has discovered that 75% of Canadians struggle with consumer debt and that, on average, they owe 16,000 dollars per head (not including mortgage debt): https://ca.finance.yahoo.com/video/playlist/money-minute/costliest-money-mistakes-172856785.html

The solution according to Ashleigh Patterson? Canadians must get their financial houses in order: they must start saving and stop using credit cards! Don't live beyond your means! Saving will help to prepare them for unexpected costs or unexpected losses/reductions in income, while not borrowing on credit cards will preserve them from having to pay interest charges that will erode their incomes in the future, thus intensifying the struggle with debt at a later stage (10,000 dollars borrowed at the standard 18% and compounded monthly yields 49,693 dollars in interest over a ten year period).

What Patterson does not seem to realize or want to admit is that if Canadians were to put their financial houses in order along the lines which she suggests, the economy would be even more anemic than it already is at the present time. More and more people saving greater sums of income and fewer and fewer people borrowing-to-to buy would reduce the amount of consumer purchasing power available to meet the prices of goods and services in the marketplace. If some other entity such as the government did not intervene by injecting more purchasing power into the economy (by increasing its mortgage, i.e., the public debt), a recession, increased unemployment, and an increase in bankruptcies would be the inevitable result of a lack of ‘consumer confidence’. Under the present economic system with its structural gap between prices and incomes, you cannot demand that certain economic actors must or should balance their budgets without causing other economic actors to unbalance theirs if any semblance of financial equilibrium is to be maintained.

The real solution is to recognize that there is a lack of consumer purchasing power derived from consumer incomes. A financial system which automatically reflected the physical economic facts would provide a sufficiency of supplementary consumer purchasing power (debt-free, as it were) in the form of a compensated price and a National Dividend. Consumers could then consume without falling into debt by relying on credit cards, lines of credit, or standard bank loans, while businesses would never have to deal with an artificially induced lack of consumer demand.

Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

Latest Articles

  • Social Credit and Democracy: The Problem
    Social Credit political theory readily grants what lies, perhaps, at the root of the democratic urge and which accounts, in large measure, for the popular appeal of ‘democracy’: firstly, that governments should serve the common good of the people and secondly, if governments don’t serve the common good of the people in an effective, efficient, and fair manner, the people who are affected should have the ability to sanction the government so that the quality of government might immediately improve. At the same time, Douglas was highly critical of the conventional ‘democracies’ that have come to characterize the Liberal West, often describing them as ‘ineffective’. Not only did they fail to serve the common good to the extent that this was physically possible and desirable, they also failed to provide the people with an effective vehicle for remedying this sorry state of affairs. To make matters worse, it was not…
    Monday, 23 July 2018 10:58 Read more...
  • Social Environment Implications of Social Credit Proposals for Income Supplementation
    It is peculiar that discussion of governmental policy frequently proceeds with hardly a nod to the most clamant fact in the world of economics, namely the massive, and burgeoning, financial debt that hangs like the sword of Damocles over human society. The dimensions of this debt, which is growing at an exponential rate, have been calculated variously by different organizations applying themselves to its study. One such organization, the Institute of International Finance, has calculated total global debt at the end of 2016 to be $217 trillion, having risen by something approaching a quarter of this sum over just the previous decade. Even more shocking than these numbers is the fact that the aggregate debt is reckoned to be more than three times globally aggregated GDPs.
    Wednesday, 11 July 2018 15:26 Read more...
  • The Economy of the Gift
     The implications of a debt-free universal dividend via C.H. Douglas’s Social Credit monetary and economic reform, a dividend that would be distributed equally to everyone, will be far more than just extra cash in one’s wallet. There would be deep and far reaching impacts in the areas of society and culture where changes would occur that would most definitely be for the betterment of mankind.
    Sunday, 01 July 2018 14:21 Read more...