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 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...
  • The True Purpose of Political Association According to Social Credit
    “It is a legitimate corollary of the highest conception of the human individual that to the greatest extent possible, the will of individuals shall prevail over their own affairs.”[1] [1] C.H. Douglas, The Brief for the Prosecution (Liverpool: K.R.P. Publications Ltd., 1945), 72.
    Thursday, 21 June 2018 14:53 Read more...