Page 10 - A Social Dividend: An Income Guaranteed to Each Citizen
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u  not equal total prices. The reasons cited earlier    to introduce into the system the distribution of a
        — delays, investments, etc. — would continue to      source of money that is not factored into prices
        create the conditions in which there is a collective   and that is not tied to employment.
        lack of purchasing power.                            33.  Do  you  propose  that  the  Social  Credit
            Furthermore, in today’s system prices cannot         Dividend will correct the lack of purchasing
        be lowered to the level of purchasing power with-        power?
        out negatively affecting the producers who have          Yes! Since maintaining an adequate volume of
        costs to cover other than wages.                     production no longer requires all available work-
            What is needed is additional money obtained      ers an increase in the Social Dividend would make
        apart from salaries. The source would not be         up for the decrease in wages and salaries.
        owners. This would ensure that the additional        34. Did you say that the sum of salaries will go
        money would not be factored into prices.                 down?
        31. What if we created more jobs?                        Major Douglas, the founder of Social Credit
            We have unemployment for the precise rea-        stated:
        son that there is a glut of goods. Why would pro-        “The distribution of cash credits to individuals
        ducers make more goods? The goal of industry is      shall be progressively less dependent upon em-
        not to create work but to make products.             ployment. That is to say that the dividend shall
        32. How then can the problem of insufficient pur-    progressively  displace  the  wage  and  salary,  as
            chasing power be corrected and increased?        productive capacity increases per man-hour.”
            The solution must be found outside of the            Douglas contended this because the contribu-
        conventional system. We need an answer which         tion  of  commonly-owned  assets  accounts  for  a
        will increase purchasing power without increasing    greater part of production while labour accounts
        prices.                                              for a correspondingly smaller and smaller part.
            The price-income gap demonstrates that the           If the notion of commonly-owned capital had
        current system only distributes purchasing power     been better understood and applied in 1917, when
        to those who are employed.
                                                             3  Douglas, C.H. Monopoly of Credit, Bloomfield Books, 1979,
            The only way to correct the lack of purchasing   p. 151.
        power in an economy of free-flowing products is      ly%20of%20Credit.pdf

            The Social Credit Dividend would increase incomes without increasing prices, salaries or taxes.

        10     Free issue of MICHAEL                                          
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