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called the Compensated Discount. This constitutes
Social Credit is based on three a price reduction to the consumer which is compen-
principles (like a tripod) sated to the retailer by the Monetary Agency. It is a
mechanism which will prevent price increases, and
1. Money issued without therefore, inflation.
interest by society Why do we Advocate for an Income for all
2. A dividend to every citi- and why call it a Dividend?
zen Usually, we think of someone who receives divi-
3. A discount on prices dends as a capitalist and shareholder in a company.
compensated to retailers The dividend paid to the shareholder represents a
share of profits. In truth, every citizen of a nation
and member of society should be recognized as a
One of the three principles of Economic De- co-capitalist and owner of an immensely productive
mocracy, which is the subject of this essay, is the real capital, which we call Real Credit.
Social Dividend payable to each citizen from the A country’s productive capacity is the basis for
cradle to the grave. It can be considered a form of Real Credit. We can consider money to be Financial
guaranteed income, furnished without conditions Credit, remembering that, rightly, money has a rela-
and regardless of employment status. This is not tionship to Real Credit, which is owned by society
an egalitarian system, per se, as the employed per- as a whole. Consider the several components of
son would receive their salary or wages in addi- Real Credit: the labour and competency of those
tion to the Social Dividend. This brings us back to engaged in work and other elements, described
a consideration of justice. According to Saint Tho- below, which are the property of all.
mas Aquinas, the guiding principle is suum cuique,
which, translated from Latin, is to give everyone First, there are natural resources, which are
what is due them. not produced by any man but are a gift created by
God which must be at the service of all. There are
In addition to the Dividend, a just economy also inventions, discoveries and innovations which
would be built on two other fundamental principles have been made, developed and passed down from
of Economic Democracy: one generation to the next. This cultural heritage is
1. New money belongs to society, not to pri- the largest factor in production today. No man can
vate companies (commercial banks), and must be claim, more than any other, ownership of this form
issued by an institution created by society such as of progress, which is the fruit of past generations.
a National Credit Office. In truth, money belongs It is today’s workers who mobilized these re-
to society; it derives its value from the productive sources and these folks are entitled to remuneration
capacity of the country; from the fact that there in the form of wages, salaries, etc. But consider our
are natural resources, a rich cultural heritage and earlier example of a capitalist who does not perso-
workers willing and able to develop these capaci- nally participate in the industry where he invested
ties. Louis Even wrote: his capital and yet earned dividends. We consider
“The Dividend is not a salary, but an injection that this person is entitled to a share of the profita-
of money into the population. One cannot imagine ble result of his invested capital.
for a minute that money belongs to a private group The largest component of modern production
or an individual [such as private banks and the ban- is a form of capital which we earlier identified as
king elite]. In all fairness, new money must be put the sum of discoveries, progressive inventions, etc.
into circulation by distributing an equal portion to passed down from earlier generations. As a result
each citizen. This is the best way to make money of this form of capital, society enjoys a great volu-
effective, since such broad distribution spreads it me of production with fewer labour inputs. Since all
across a country. Money must be brought into so- living beings are equal joint heirs of this immense
ciety at the pace of production and correspond to capital, which is always increasing, all are entitled
the need for distribution. But who will own the new to a share of its fruits (just as was the capitalist sha-
money? The citizens themselves, not the govern- reholder earlier described).
ment. The government is only the guardian of the
common good, it does not own the country. Neither We say that the employee is entitled to a Social
will money be the property of the accountants at Dividend and to his salary. The person who is not
the National Monetary Agency. Money is a tool for employed, and without a salary, is entitled to a Divi-
society’s use. dend. We call it a Social Dividend because it is the
fruit of a commonly owned social capital.
2. Another principle of Economic Democracy is u
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