Sunday, 05 March 2017 23:20

The Social Credit Bottom Line

Written by M. Oliver Heydorn
Rate this item
(0 votes)

The modern, industrial system possesses an enormous productive capacity, both actual and potential, to meet our legitimate needs for goods and services. With every technological advancement we can produce more and/or better with less resource consumption and less human labour.

Now, if we had an honest financial system, i.e., one that accurately registered and reflected these physical economic realities, the cost of living would be much lower than it currently is and it would be falling steadily, while the decreased need for human input in the form of work would be represented by the continual expansion of paid leisure.


If, instead, we continue to operate under the existing dishonest and dysfunctional financial system, we condemn ourselves to Sisyphean exercises in futility, as we vainly struggle to make an insufficient flow of income cover an increasing flow of corresponding prices.

 

The choice between function and dysfunction is ours.

More in this category: « Social Credit in a Sentence

Leave a comment

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

3 comments

  • Comment Link Oliver Heydorn Thursday, 22 March 2018 23:34 posted by Oliver Heydorn

    Hi J.B.,

    Yes, the A+B theorem applies to all productive agencies operating under industrial and standard financial conventions. Small enterprises offering financial services or producing software programmes still have B costs in the form of various overheads (rent, equipment, etc.). The fact that the B factor may not be as great relative to incomes in those cases does not negate the existence of the B factor (which causes the flow prices - A+B - to exceed the flow of incomes - A.

  • Comment Link JB Thursday, 22 March 2018 23:30 posted by JB

    Just to clarify some social credit statements: When one reads the likes of "[The} A+B theorem...demonstrates the fact that all [business] firms are generating costs at a faster rate than they are distributing incomes"; does this apply to small enterprises producing certain financial services or producing software programmes? (Apparently such companies have minimal costs but generate considerable incomes.)

    Or does one have confusion between incomes and profit?

    Many thanks.

    JB

  • Comment Link Wallace Klinck Thursday, 22 March 2018 23:29 posted by Wallace Klinck

    An excellent summary alluding to the enormous waste built in to our existing economic system consequent to accepted conventions of industrial cost-accountancy and unsound finance as provided by the banking system. C. H. Douglas profoundly explained the situation by his statement that we must distribute goods and services on the basis of work completed and not on the basis of work in progress. In other words, we must ensure that consumers at large have always sufficient incomes to purchase the entire final product of industry as it emerges from the production line.

    Human energy is a diminishing factor of production in the modern economy, where it is being rapidly replaced by technology providing enormously greater efficiency. We must abandon the anachronistic, unrealistic and false moralistic position that access to consumer goods is only or primarily justified by direct participation by individuals in production processes. The logical conclusions to be drawn from this erroneous and dogmatic belief are that the end of man is either endless manufacture of goods and services, regardless of actual need or desire, or that efficiency is to be abjured as something evil or undesirable. Both positions are an obvious fatal impediment to the flowering of anything worthy of being called Civilization.

Latest Articles

  • A Favourable Balance of Trade? - New Animated Video
    This is the first professional animated presentation of one key aspect of the Douglas or British Social Credit case (not to be confused with Chinese 'Social Credit'): the folly of 'favourable' trade balances under the existing financial system, where physical loss and inefficiency are financially rewarded.
    Written on Friday, 27 September 2019 04:04 Read more...
  • Problems with Taxes
    Relying on bank credit, indirectly through taxation or directly via borrowing, to fund a Universal Basic Income (UBI) scheme is untenable. A fundamental reform of the financial system is the only viable means to ensure a future in which sustainable purchasing power is in the hands of the Canadian consumer. There is no need to take from Peter to give to Paul. Not one penny of anyone’s income would need to be redistributed. There is enough for everyone to have an income, a UBI, under a corrected financial system as advocated by Douglas Social Credit.
    Written on Tuesday, 16 July 2019 14:59 Read more...
  • Living Beyond Your Means
    We are often told that people should not ‘live beyond their means’, that is, that no individual person, nor any corporate entity like a business or a government, should spend more money during a given period than they take in as income or as revenue. Doing so is judged to be profligate, irresponsible, and only setting oneself up for pain in the long run. For countless centuries, if not millennia, the balanced ‘budget’ has been regarded as the sine qua non of fiscal prudence and ‘sound’ finance. And yet, if we look at our economies over any given period of time, it is quite normal for individual consumers, considered in the aggregate, to spend more than they receive in income, for governments at all levels to spend more than they take in viataxes, and even for businesses, considered again as a whole, to spend more money (thanks to long-term capital…
    Written on Monday, 15 July 2019 13:21 Read more...