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Social Credit - Effective Allocation of Resources
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Posted On :
Nov-21-2011
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Article Word Count :
544
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Everyone has forgotten the important rule of first saving and then spending due to easy availability of debt. Only by pursuing the policies of Social Credit can we achieve a just and equitable society.
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Why do we have to bother about the increasing amounts of debt being taken by the governments around the world, especially in recent years? After all, it is the citizen’s money and the governments can be relied upon to pay their debts back. What makes it a very worrying problem is that world debt is increasing so rapidly that it has overtaken capital formation and economic output. With the passage of every second, someone is taking on more debt and adding up in the world debt.
Almost every country in the world is culprit in this field and the situation is becoming alarming because of increasing US debt and European debt. . Increasing government debt implies that the government is spending all its resources on just debt servicing, and as a result is left with very little or no money for future investments and will never be able to remove debt.
The debt crisis can also become critical if the government goes broke and is taking on more debt to fulfill its past debt obligations. This will pave the way for poverty, higher future taxes and increased government interference in business and economy.
To counter this dangerous trend, the philosophy of Social credit evolved which means that the country is like a company, and its citizens are its true shareholders. True wealth is created and delivered to these people by creating new wealth, and not debt. Social Credit as a concept encompasses many fields such as economics, political science, history, accounting, etc. Even the problem of world debt can be recovered this way.
The positive use of increasing use of capital in the economy increases manufacturing efficiency, but its negative effects create reduced demand for labor due to more usage of automation and machines. The reduced demand for labor leads to unemployment and under-employment, which further leads to reduced consumption demand in the economy.
Social credit demands generating purchasing power of the society through social dividend and price adjustments, thus solving the vicious circle of unemployment, lower incomes, recession and depression. The society as a whole should own the credit and all excess reserves should be equally distributed among the society members. Banking is preferred but banks should not be the owners of money and credit in the society. Society ownership leads to stability in purchasing power and long term economic decisions can be made without giving a thought to boom and bust in the economy. Many immense benefits will occur:
• Mega-corporations and governments will diminish in size
• Speculation will disappear
• Commodity credit which encourages legal gambling in vital economic resources will vanish
• Unemployment and underemployment will not be seen as negative things as it will give opportunities for people to develop their skills by receiving social dividends.
Social Credit as a concept has been considered to be too idealistic to be applied as it focuses on community ownership. What we have now in our economic structures is institutional ownership, where everything including money and credit are owned and monopolized by mega-corporations and banks. Social credit tries to negate this and emphasizes on the rule that “Systems are made for people, and people are not made for systems”.
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Article Source :
http://www.articleseen.com/Article_Social Credit - Effective Allocation of Resources _107405.aspx
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Author Resource :
Social credit can solve the world’s debt problem by curing the ills plaguing the world today, thus enabling the creation of an equal society.
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Keywords :
Social Credit, world debt,
Category :
Finance
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Debt Consolidation
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