Page 19 - Michael Journal 2019 August

Capitalism Versus Communism trated in fewer hands.
It is therefore not the capital-
ist economy in itself that must
“Communism is intrinsically evil” be blamed. One must not wish
for the destruction of capital-
Capitalism responds to the aspirations ism, but for its widespread dif-
fusion. If there is only 5 percent
of the human person, but it has been of the population of a nation that
enjoys the status of a capital-
vitiated by the current financial system. ist, one must strive to increase
Adam Smith, the Karl Marx, the father this percentage to 100 percent,
father of Capitalism of Communism instead of wishing to bring it to
zero.
by Louis Even The capitalist system has not reached this Through Social Credit
point of tyranny. Its flaws are not inherent to cap-
One often hears: “Capitalism is not better than italism itself and do not come from its nature but This is exactly what a Social
Communism. The Church has condemned both from the financial system which it utilizes to dom- Credit monetary system would do
with the same vigour. So the capitalist system de- inate rather than serve. Capitalism has been viti- by replacing the current financial
serves no more consideration than the communist ated by the current financial system. system which is slowly destroying
system”. The capitalist system is, by defin- genuine capitalism. Social Credit Families do not have access to God-given plenty
because governments bow down to Mammon.
This is false. To say so is to attrib- ition, a system that responds to the would make every citizen a capital-
ute to the capitalist system evils that aspirations of human nature. It recog- ist. In the life of economics, men each and every individual. They want an econom-
come not from the system itself, but nizes and protects private property, would have their liberty restored and claim the right ic system of freedom for everyone; the right to a
from the abuse of individuals who free enterprise, freedom of choice for to organize life as one would have it, provided the livelihood linked to the person and not to the fact
behave more like tyrants (like lead- the human person and the sovereign- same right exists for others. that someone is employed in the system of produc-
ers of Communist countries) than like ty of consumers over the objectives Also economically speaking, the greatest bene- tion or not. The Dividend would be given to all, to
citizens of a country that is genuinely of production through free markets. It fit of being a capitalist under Social Credit is the those who are employed as well as those who are
capitalist. allows consumers to choose among freedom of choice that would allow a person to de- not, without placing any limits on remuneration for
Pope Pius XI wrote about Com- products and thus guide production. cide whether to pursue increasing material wealth. those who are employed in production.
munism: “Communism is intrinsic- Some will object: “Things do not Insofar as his income from the National Dividend All capitalists
would allow him to live decently, the person under
ally evil, and no one who would save Louis Even exactly happen like that in our capital-
Christian civilization may collabor- ist countries. The ownership of pri- a Social Credit system would be free to accept or What basis has Social Credit for saying that
ate with it in any undertaking whatsoever” (encyc- vate property is being enjoyed by an increasingly refuse any project that is proposed to him. His in- every human being is a capitalist, by right? This
lical letter, Divini Redemptoris, n. 58). small minority of people. The majority must be at come would not be contingent on personal partici- has been explained in earlier issues of the journal,
pation in production so he can use his free time as
In Quadragesimo Anno, Pope Pius XI wrote: the service of the minority or fear hardship and star- he wishes. Although he may certainly still accept MICHAEL, so we will only summarize the argument
here.
“Capitalism itself is not to be condemned. And vation through lack of purchasing power. The lack a job he can also do activities of his own choosing
surely it is not vicious of its very nature, but it has of purchasing power kills or certainly reduces the — and these activities may well contribute to the Productivity today is the result of several fac-
been vitiated”. freedom of the choice of goods and therefore sup- enrichment of society, with wealth generated that is tors. First, there are natural resources which are the
Communism is intrinsically wrong, not only be- presses the sovereignty of consumers over the ob- not necessarily material. Freely given labour is gen- raw materials for production. These have been cre-
ated by God. Without raw materials there would be
cause it divides man from God, but also because jectives of production. Do not conflicts between em- erally more creative and fruitful than hard labour. no production possible. Secondly, knowledge has
ployers, who constitute a minority, and employees,
of the little importance it attaches to the individual, who constitute the majority, show that the present This capitalist income is called a Dividend. The been accumulated and passed on from generation
even in the temporal realm. Communism degrades system has difficulties in responding to the wishes Dividend would bring unconditional economic to generation. There have been inventions and dis-
the human person. It does not take into considera- of people and that even capitalism attaches little im- security or absolute economic security said C. H. coveries of new sources of energy and improve-
tion the nature of man created by God. It tramples portance to the freedom of choice of the majority?” Douglas, the founder of the Social Credit school of ments in production processes. Thirdly, there is
on the individual’s freedom of choice. For Commun- thought. Wages and salaries, even though they can the input of human labour (even though this would
ism, man is nothing but a tool to achieve the goals The answer to this objection is precisely in the be sufficient for a decent living, can only offer a lim- decrease) and lastly, investments and financial cap-
of the party; a tool that must endorse the goals of fact that the system we know as capitalism is re- ited and contingent economic security, a security ital allow materials and manpower to be mobilized
the party or be crushed ruthlessly. stricted to the minority rather than allowing goods dependent on employment which can have an ele- (even though the latter consists of figures alone).
Communism is tyrannical to the highest degree. to be distributed to the majority. One cannot say ment of coercion and bondage. Of these four factors, the most important are the
that a country lives under a capitalist system when
Once in power, the Communist Party allows noth- capitalism concerns only 5 percent of the popula- Those who praise wages but have disdain for first two. Natural resources are not earned but God-
ing that might undermine or jeopardize its ideals. tion with the 95 percent surviving thanks to the per- Dividends are celebrating bondage and discrediting given; they are the real capital created for all people
It exercises absolute control over everything and mission or goodwill of the small minority. Such a freedom. Trade unions and other groups who ad- of all generations to be used for their normal needs
everyone. Only the state decides what is permitted system is only 5 percent capitalist and 95 percent vocate full-employment policies associate the right and are meant to be husbanded (for inert goods,
and any deviation will mean that the state will make slavery. It resembles Communism as the power to to live with a system of bondage. Social Crediters like iron ore) rather than foolishly wasted as is done
one’s life miserable. dominate the lives of others is increasingly concen- advocate for the distribution of a social Dividend to on a world-wide scale today. u

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