Posted on: March 05, 2017 by M. Oliver Heydorn

Category: Social Credit Views

The Social Credit Bottom Line

     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.


Comments

Posted: March 05, 2017

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.

Posted: March 06, 2017

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

Posted: March 06, 2017

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.

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