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The Social Dividend

An increase in the amount of cash credits in the garding its birth and longevity. Thus, the abundance
hands of consumers will be justified as long as max- or scarcity of money depends on the actions of banks.
imum productive capacity has not been reached. Their 84. Do banks create wealth?
amount and frequency must be decided to prevent No, banks create money, also called financial
sudden increases and inflation while at the same time credit, but they do not create the basis for money. The
allowing the productive capacity to be mobilized. How basis for money is the productive capacity of a nation,
the Dividend is distributed is a matter for technicians without which money would be without value.
to settle. Dividends could be distributed by a simple It is this financial credit that allows productive
accounting entry made to the account of each citizen. capacity to be set in motion and wealth to be created.
Presently, there are obstacles to the satisfaction of Money does not create wealth per se, but it allows us
basic human needs caused by a financial system that to do so.
was established by men. As the system was established 85. Does this mean that the creation of money by the
by men it can be modified. This is the goal of the mon- banking system is wrong?
etary proposals of Social Credit and its Social Dividend.
What needs to be held against this system is not
80. But again, where will the money come from? so much that the banker is authorized to create money
To those who ask: “Where will this money come since someone has to do it as money cannot create
from?” we would like to ask: “Where will the products itself. What is wrong is that bankers have absolute
come from?” control over financial credit; they have the power to
Entering an amount in a bank account is easy to impose their conditions as to who gets money and for
do. It is much easier than making the products that are how long. What is wrong is that the country’s entire
to be sold in the marketplace. It is easier to distribute economy depends on the bankers’ decisions. It is not
a Dividend than to make the goods that the Dividend so much the bankers’ profits but their power that is
will purchase. The money issued as Social Dividends disastrous.
does not come from taxation. It is new money that will This disorder must be corrected and Social Credit
be added to the bank account of each citizen. would correct it.
81. Did you say “new money”? Conclusion
Yes, new money. This is nothing out of the ordin- 86. How will you attain this New Economics and its
ary. Money is created day in and day out. The birth of Social Dividend?
money takes place in every bank. A New Economy must be established. We firmly
82. Is money born in a bank? believe that the logic of Social Credit and its propon-
Yes. When someone brings money he saved to ents’ “love of neighbour” will eventually prevail.
the bank, the cashier places it in the bank drawer and If affluence is absent from our homes, it is because
adds the amount to the customer’s bank account. It is production was wilfully destroyed and abundance
not new money. It is “pocket money” that was turned shackled. Many are kept unemployed and potential
into “bank account” money. goods that could be manufactured are not. During
But when someone comes to the bank and a loan both periods of war and peace production is torped-
is granted, the bank manager enters the amount as a oed.
credit to the borrower in the customer’s bank account. Those who thought they could guide the crowds
In this case, the borrower is getting brand new money told them to save their money. Save what? Save
since the banker did not take one penny out of his bread? But there is too much wheat! Save clothes,
vault nor did he take anything from other depositors’ shoes? The producers of these goods are unemployed
accounts to create the approved amount of credit. because their products remain unsold.
This is why we say that money is easy to make. They wanted us to save money. Our elites are
83. Isn’t money made by the government? guilty of ignorance or cowardice.
No, money is not made by the government as The problems of production and transportation
most people believe, nor is it made by an institution are solved when compared to the problems of distri-
that represents the population. bution. We keep reasoning as though earth was still
Money is made by the banks and created when covered with burls and thorns.
a loan is approved. The money is sent “to the grave” For the last 20 centuries the Word was made flesh.
when loans are paid back, minus the amount kept as The Church asks the Eternal Father to grant us our
interest fees. daily bread. The heavenly Father gives us an abun-
The banker creates temporary money with the use dance of goods and we insult Him by locking up this
of a pen. The same money will be destroyed by the op- abundance behind closed doors.
posite process, when the borrower pays back his loan. It is a social economy that we demand; an econ-
Only the banker has the privilege of creating tem- omy that guarantees that each and every member of
porary money to which he adds his conditions re- society will receive their share of earthly goods. v

www.michaeljournal.org MICHAEL May/June/July 2019 47