There are three basic principles in the Social Credit: 1.
money without debt issued by the government, representative of the company, according
production, and withdrawn from circulation by the consumer 2. the social dividend assigned to each citizen, 3. offset the discount.
The three principles are required, the first being a simple explanation of the ideas set in 1930 Douglas in "The Monopoly of Credit", and regards the adjustment between production, purchasing power and price "The means of purchase (cash credits) in the hands of the population of a country must at all times, be collectively equal the price to pay collective (collective cash prices) for consumable goods sold in this country, and these means of purchase (cash credits) must be canceled when purchasing consumer goods .
us clarify these three principles, the first principle, already outlined, is also called the principle of fair currency or currency only adequate.
1) money (or currency) will be issued by the public, the amount issued to match the estimated production " at the right price," this money disappeared at the time of consumption.
To explain this concept of jute prices and just money, take the example from the site "to tomorrow" to explain this principle (we considered here only two major sectors - as in Book II, posthumous, of Capital, but also as many macro-economists, following more recent Keynes himself later wrote to Major Douglas, "father" of Social Credit).
Suppose that records a year for the countries studied provide:
Production of capital goods .............. 3 000 million
Production of consumer goods ..... 7 000 million
Imports .................... ........ 2 000 million
________
Hence, assets, an amount of total purchases of ..... 12 000 000 000
other hand, for the decrease:
Impairment capital goods ........... 1 800 million
consumption .. ... ........................... .5 200 000 000 Exports
......... ... ..................... 2 000 million
________
This implies that the passive a decrease Total ..... 9 000 million
Thus, while the country is enriched by 12 000 million, he would use or consume, or should yield 9,000 million.
The actual cost of production overall richness of 12 000 million, or 9 000 million (9 billion). If it really cost the country $ 9 billion for producing 12 billion, the country must be able to enjoy its 12 billion, while spending only that 9 billion.
course, when one speaks of "balance" as it is for a country, region, or a simple business, talk, talk, or should, accounting. How, then "reconcile" the assets and liabilities of a balance sheet, which, by construction, must be balanced?
other words, how to match the money needed to produce the money needed for consumption facing a "gap" Apparent 3 billion.
Louis Even wrote elsewhere on this improper accounting " accountants are neither producers nor governments. The numbers start at banks, and these figures are not related to production that is offered, but in connection with what the bank expects to make a profit on the trade of these figures.
Instead of being merely a bookkeeping service, the money system was flawed. His control was monopolized and became an object of traffic, domination, tyranny, dictatorship on our daily lives. "
How then exit the system" flawed "?
solution "classic", and currently used, is known although it is rarely explained so clearly: it is a 'mix' of debt (that we can never fully repay), blight, devaluation of stocks and destruction of goods already produced that attempt to compensate for this difference 3 billion. Where debts, public or private, exponentially increasing, thousands of tons of food thrown away or burned, sometimes adjacent to growing poverty is an abundance of riches spread shameless unscrupulous.
The solution of the Social Credit has two components, corresponding to principles 2 and 3, Principle 1 is to assess the "fair price" the production of a country for a period (this may be the month, quarter or year) and ensure that money - issued by the public - used to finance the production disappear at the time of consumption (as defined above, capital depreciation, consumption of consumer goods, and exports). In the example above, the fair price for a production of 12 was 9 , or 25% lower.
2) The Social Dividend (or minimum income, Dignity or Existence
In modern societies, the percentage of workforce, or activated, tends to decrease, due to two main causes: a) technological advances making it less necessary for some work - particularly those based on the strength, skill or ability of organization and classification of the human species b) increasing human longevity - the latter has risen by almost 20 years in the last century.
This observation is trivial because the question of the distribution of purchasing power arises only if the employees, artisans, merchants, and 'capitalists' have' right "to income, that happens to all those who do" not work "?
Social Credit proposes to distribute to each individual country concerned a dividend, income, independent of its contribution to production (as a percentage to be studied, it can be a fixed percentage of national income, offset a equalization taking into account the age of the individual concerned). The issuance of this dividend will be made by regulators monetary
3) The compensated discount or bonus to purchase corresponds the third principle.
We present here the form of "bonus" of this third principle, the idea, very simple, as follows: the purchasing power of "distributed" is 9, for a price "posted" 12, each purchase, paid 12 to the seller, will result in a refund of the monetary regulator 3. The 'gap' book mentioned above will be filled by the direct issue of currency, and distributed directly, without debts, without compensation other than proof of purchase of a product sold 12, who really "cost" 12 during the production , but can not be purchased as "9" due to insufficient purchasing power distributed during the same production. The total gap thus correspond to an overall bonus of $ 3 billion, with data from the example above?
Principles 2 and 3 have a common goal to avoid any crisis of over-production ", or rather of insufficient effective demand , where a purely" economic ". Principle 2 has an additional objective of solidarity and social justice: to allow those who have no business "market" to live in dignity.
BL
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