Page 43 - michael-journal-2019-may

The Social Dividend

u monetary system to the workings of the judicial sys- system. The government would name the members
tem. of the National Credit Office (NCO). The NCO would
72. How can a Social Credit monetary system be assure that the monetary system functioned accord-
modelled on the “the workings of the judicial sys- ing to the law.
tem”? Finance would precisely reflect the facts of pro-
The government appoints judges, but does not duction and consumption and subsequently guaran-
interfere in their rulings. Judges do not render verdicts tee that a periodic Dividend was distributed to all cit-
based on profit; their incomes are independent of their izens. Once its function was clearly defined, the NCO
rulings. They render judgements objectively, based on would proceed without government interference.
laws that they themselves have not written, and based The judicial system requires that justice is ren-
on facts they neither forged nor created. Judgments dered openly and publicly. Likewise, the NCO would
are made based on testimonies that establish facts. draft and publish periodic reports upon which its cal-
Judges do not testify in their own courts. culations were made. There would be no place for dic-
The same would apply to a Social Credit monetary tatorship with such a system.
From Where Will the Money Come?

73. From where will the money for the Social Divi- 76. When must money be added?
dend come? The amount of money in circulation should nor-
Let us answer by asking another question. Where mally increase each year. But for there to be more
did the money come from the very first time it was money in circulation, it must be added somewhere.
used in trading when it replaced the more difficult sys- 77. Money must be added somewhere, but where?
tem of bartering? It could not have come from taxa-
It must be noted that the volume of money is in-
tion. creased in order to recognize an increase in product-
Money consists of figures printed on metal, paper ive capacity.
or in bankbooks. These figures confer the right to
choose freely from products and services available for What causes products to be made? Consumer de-
sale in a country. mand. When do consumers give orders or direction
to producers? When they have money with which to
Once the right of each individual to a Dividend is choose and pay for goods and services.
recognized, all that will be needed is to issue these
Increasing the purchasing power of consumers,
figures to each individual. so that directions to producers might be increased,
74. Can the volume of money be increased when pro- requires that (new) money be placed directly into the
duction increases? consumers’ hands.
Men invented money to facilitate the sale of prod- Each time new money is created, citizens will re-
ucts; the more products there are, the greater the ceive a Dividend. This is their share of the common
amount of money needed. good.
Productive capacity increases when the size of the 78. Who can create this new money?
population increases. If the number of people in a re-
gion increased from 100 to 10 000 without an increase The creation of new money, by issuing Social Divi-
in the amount of money, exchanges would undoubt- dends to all members of society, can only be done by
society itself since it is a common good that must be
edly be paralyzed. An increase in a population war-
rants the need for more money. distributed.
Will banks be the institution that does this for society?
The increase in production due to progress also
calls for an increase in the supply of money. Who Banks were not established to give grants to con-
would argue that the amount of money should not sumers. A bank is an institution established to facili-
change when the productive capacity increased? tate financial operations by receiving, investing and
75. Will this not lead to there being too much money? manipulating money that is already in circulation and
it seeks to make a profit while carrying out these oper-
Some may say that money would pile up if a Divi- ations.
dend was issued month after month. This is not the
case. The Dividend will be issued regularly, but it will Only the government, as society’s trustee, or an
be spent at the retailers, and through the retailers the agency it appoints with a clearly defined purpose has
the social authority to increase the amount of money
money will be returned to the National Credit Office.
MICHAEL depicts this operation. 1 in circulation.
79. In what amount and how often will Dividends be
1 https://www.michaeljournal.org/articles/social-credit/item/how- issued?
to-finance-production

46 MICHAEL May/June/July 2019 www.michaeljournal.org