Show alberta tries the new economics DEAL ME INI ILL BE mr BACK AS SOON AS I 1 CNN CASH MY DIVIDEN I 1 AL CREDIT IS A WONDERFUL WING tato A INC UT 61 9 ae SOCIAL CREDIT PROPOSES PROPOSE 5 TO TURN INTO LEISURE BY THE distribution OF 01 THE TRE NATIONAL DIVIDEND by WILLIAM C UTLEY with pen ketches sketches by the author a dividend of aa 20 a P month for every citizen of the province alberta the pol wild mare of canadian brov inces has elected as its premier 11 ilam aberhart calgary high school principal rad 0 mogul and evangelist premier aberhart with the advisory aid of maj clifford hugh douglas scotch economist vi I 1 0 has championed the cause of his own social credit scheme since early days of the world war will attempt to set in operation in alberta the first bract cal expert f ment with a R government in the new economics new only in actual practice social credit Is based upon the economy of aplenty plenty rather than our more familiar economy of scarcity its premise Is that there Is plenty for all th these ese days in the world or more specifically in a nation like the united states or I 1 11 I 1 e canada we are capable of prodoc teg ing everything that everybody in the country needs the reason that some of or us are in want Is that the ing power money Is not distributed properly social credit claims to have a means of distributing purchasing power without expropriate on of ana an bind kind will out tailing taking anything away from him who already possesses it social credit abhors as evil L 1 the private control control not ownership of money 2 the basing of money on a corn com modify gold 3 the automatic shortage e of pur chasing power resulting from present economic practices 4 the theory that income should only become by honestly tl rough wages and salaries for work done what do instead for thase ibises social credit would substitute I 1 contri of money by the nation not the bankers 2 money based upon the nati nationiel onil wealth tint tl at Is the real wealth or tl e ability of he the n illon to produce e goods and services where and when and as re quiren 3 creation of purchasing power which will buy everything we want as fast as vie me produce it 4 the means to look upon release from unnecessary work as a blessing 0 rather than a calamity as it Is now I 1 quote from the ABO ABC of social credit by E S holter si socail cred r proposes to turn un employment into aels ire by the distri of the national nl dividend this national dividend div bend which la is explained as an expression in cash of our common cultural inheritance the cultural benefits bent fits handed down to us by the inventions and ideas of 0 ir ancestors and therefore necessarily equal to rich and poor alike Is tie tle idea which premier aberhart Aber hirt used to capture the imagination and the sym pathy of alberta voters the cultural commonweal alberta albertas s common cultural inherit ance Is worth in round numbers say about 25 a month according to mr Aber aberhart harts s platform so within about IS 18 months everybody in alberta of voting age ot 0 course Is going to get ge a monthly dividend book worth aa 20 in any bank or barrelhouse barrel house in the inspired province that mr air aberhart apparently Is going about raising the dough for so handsome a stake in a manner neither k exactly in line major douglas social credit economics nor even re tem sem bling it like a first cousin and that mr aberhart and the major ha hal I 1 quite a little falling out a short time ago probably over that very fact are f matter mattw pt little consequence to al bortal lIr r alost ost of them do not know what social credit is all of them know what 25 Is schoolmaster aberhart got the job already the idea of social cred tl L as interpreted by major douglas not premier aberhart has bas caught hold in the united states the formation of a social credit party which claims a membership of 10 persons mostly in california and new york ts Is under way in detroit its platform contains the stipulation of an annual income of 1200 for all persons over forty years of age in alberta as mr aberhart has stated the d videna will be merely a split of the government governments s til vil e from a general iles siles s tax that Is not the way true socail credit wo 11 create such a there la Is in ich in re to the socail clil cred t wl crl ame tt 11 it n tl tf e d atri aution of th the dividend but since an explanation of this dividend tates an outi ne of practically all the new economics let us attempt an explanation it would be difficult to explain the part of the banks in creating a short age of purchasing power more con bisely than mr air holter does in his book money flows in a definite course the source Is the banking system which starts the current by making loans to the producer who through the process of industry distributes it directly or indirectly to the consumer the consumer buys with mith it the prod act of industry over the retail coun ter at this point the money Is start ed on its homeward journey for after it has passed through the producers hands bands it is returned to the bank in repayment of the original loan under this system it Is obvious that if a part of the money which enters into the producing channel falls to reach the consumer or it if any of the money which does reach the consumer Is not actually spent a shortage of ing power will result shortage of purchasing power the idea Is that under the present system the amount of purchasing pow er of a community at any given mo anent Is never sufficient to buy bach back the total production of industry if any charges are made in respect of capi tal production tow producers today if they are going to stay in business very long must get back all of the costs which go into an article in prices social cred tors d vide these costs into two classes A all payments that a pro ducer makes males to individuals wages salaries and dividends and B pay ments to other organizations for raw materials machinery maintenance bank charges and other external charges the only money distributed directly to consumers comes under the A heading yet when the fin shed ar tide appears on the market the con sumer must pay a price equal to at least A plus B so the amount of purchasing power which the comma alty Is short Is the amount represent ed by industry s B costs certainly much of the B costs event bally appear in the form of ing power tor for bankers and wholesale who lesal ers have to eat cat and clothe themselves tl TI e point social credit makes males Is that th s purchasing power appears too late or too e birly irly because industry s B payments may be completed at a time irrelevant to the cycle of production for which they were issued money which a factory paid for raw materials would be largely spent by the time the finished article appeared being spent it returns to the bani s there Is a fresh supply of goods to be bought but much of the money which should have gone to buy them Is canceled out of circulation only further bank loans to indest industry ry new inventions which founded new in destries dus tries wholesale sabotage I 1 11 I 1 e the plowing under of wheat and the kill aja I 1 AN ARTIST WOULD NOT BE DRI DRIVEN BY ECONOMIC circumstances CIRCUM STAKES INTO BECOMING A DANI 6 OW CLEW ing of pigs when some of the populace was hungry have kept the system go ing as long as it has been say the social S 0 creditors and it cannot keep up that way may forever As a remedy social credit proposes to take the control of money and the mon poly of its creation as acono mists admit that it exists today de spite the constitutions provision that only congress shall have supervision over the coinage of money from the banks the banks would still be in dispensable in the administration of 41 4 A credit and as clearing houses but with a national credit authority would rest the power of the creation of all money such money would be based not upon a commodity such as gold but upon the count country rys a real wealth which as has been said Is the ability to pro duce goods and services when and where and as required under this scheme factories and their potential capacity for production land roads bridges buildings media of transportation water schemes min brals semi manufactured materials and the like would belcome capital assets and money would be issued against them it would be the duty of the national credit account to appraise these things every three months As social credit interprets it the money in the country should never exceed the amount at af the community s ability to consume and would be regulated to keep apace with it it to create purchasing power wh where ere it is lacking today the national credit authority would do away with the ne lie cassity of the consumer consumers s having to pay costs both A and D in the price of retail articles the consumer would be given a discount on all re tall articles equal to the estimated 13 cost of producing them this discount would be repaid to the retailer by the national credit authority upon his presentation of the sales slip showing the discount allowed the discount thus allowed would enable the con sumer to pay the just price of any article and would raise his purchasing power the national credit authority would control the prices of articles at retail by furnishing periodic estimates of the current ratio of production to tion and inducing reta lers to s agn pledges to hold the just price at a level with the fluctuations of the pro cor ratio the retail er who would not sign such a pledge would not be I 1 censed to issue the retail d and therefore would not be able to survive against competition if at any time in the dim distant future consumption should ever catch up with production the retail dis count could be removed for it would no longer be necessary another duty of the national credit authority would be that of distributing the national dividend this Is because part of man s cultural inheritance from past ages has been an evil one the very machines which mans mastery of science has developed to relieve h in of work have also relieved him all too k IV 1 1 4 6 q william aberhart alberta s prem er often of the salary he used to receive for do n ng such work in compensation for this every unemployed person would be given a monthly check which would mould be paid out of the national credit account just like the retail reta dis count none of us then would have to do distasteful work an artist for in stance would not be forced by eco circumstances into becoming a bank clerk from the social cred t viewpoint it unemployment Is a very decided symptom of health writes mr bolter it if our nation is capable of producing in abundance all those things which we need and desire through its industrial equipment with less and less effort on the part of man we are clearly getting nearer the day of increased freedom from manual work present unemployment Is a lap on the way and Is in itself apart from its ugly associations far from being bein an evil the only difference between leisure and unemployment is that one Is paid and the other Is not source of the dividend that the national d videna will be paid with new money and that the re tall discount will be paid with new money will cause absolutely no iffla tion according to the ideas of social creditors social credit hangs to the theory that since the new money Is issued only after prices have been lowered through the retail discount it could not be accompanied by the only real evil of inflation which would be a simultaneous rise in the level of prices every penny issued on behalf of the national discount would be debited against the sum standing to the na t lonal credit in the national credit account says the doctrine of social credit that Is social credit if it can be explained in a few hundred words Is it just another of those wild wildfire firo schemes for sharing the wealth Is it communism socialism or just plain lunacy or Is it sound acono and the true way out of the worlds world s depression that you will have to decide for yourself 0 western newspaper Newa paper union A 0 |