Thursday, 21 August 2014 22:12

Why Social Credit is not Socialism

Written by Oliver Heydorn
Rate this item
(0 votes)

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.

Last modified on Saturday, 10 February 2018 22:58

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 - Part Five
    Thus far, we have looked at the whats and the whys of the financial domination of liberal democracy. It is now time that we turn to a more detailed examination of the hows. Let us begin with the general observation that, in a society operating under the Monopoly of Credit, organized political activity, like most other activities, is largely dependent – directly or indirectly – on Finance. Money, both in the form of producer credit and in the form of income, is maintained in a state of artificial scarcity, and Finance will naturally be inclined to ration it to those who do its will and to punish those who resist by denying them access to the life-giving credit. Credit, in turn, is a necessary means for obtaining most of the material and human resources required for political action. In this way, Finance can condition political activity to the point of…
    Written on Monday, 31 December 2018 22:25 Read more...
  • An Introduction to Social Credit - animated video
    Introducing the first-ever animated presentation of the Douglas Social Credit economic diagnosis and remedial proposals. Please spread wide and far!
    Written on Friday, 16 November 2018 04:01 Read more...
  • Social Credit and Democracy: The Problem - Part Four
    "If one wishes to do full justice to reality – regardless of the topic that is being investigated - it is of the gravest importance to neither underestimate nor overestimate the phenomenon in question. Accordingly, whenever this particular question of ‘conspiracy’ becomes the subject of reflection, the thoughtful individual will seek to follow a sensible middle-path in accordance with the available evidence and in full knowledge of his cognitive limitations. This will allow him to scrupulously avoid the error of those who become irrationally suspicious, i.e., paranoid, while, at the same time, avoiding the mistake of those who, by preferring to be complacently sceptical, refuse to call a spade a spade. To deny the reality and indeed even the possibility of conspiracy as an explanatory factor behind much of our socially-induced discontent is just as irrational, therefore, as to think that every negative thing that occurs in the world must…
    Written on Thursday, 08 November 2018 02:23 Read more...