Page 18 - Michael 2024 March

Economic Democracy, or Social Credit

is necessary for a healthy economy

Developed by Major Clifford Hugh Douglas

and explained by Louis Even

by Louis Even racy, and more popularly, Social Credit.
Readers of this publication, MICHAEL, may be Philosophically, Douglas was a student of Aris-
curious by the ideas expressed herein regarding totle, and as such considered the various functions
economics and finance. The ideas are logical al- of the economy in relation to their logical and nat-
though novel. Their application to national econ- ural ends. Means were subordinated to ends in his
omies would deliver hope to societies. Where did formulation. With an engineer’s ingenuity, he articu-
these theories originate? What is Social Credit , a lated elegant and efficient proposals. There is, he
1
term not found in economics textbooks? Is it a fanci- said, a “canon” that should not be violated; a natural
ful concept developed by the editors of MICHAEL? law, as it were. Douglas was concerned that indi-
No! MICHAEL earnestly spread vidual freedom and responsibility
these ideas but did not conceive be preserved, and individual natural
them. We believe a Social Credit rights retained. Institutions of every
monetary system would resolve nature, whether political, economic
most of the economic and social or social, must serve the individual
problems in the world today, but and not dominate or control him, he
our publication is not the author of believed; systems must not restrict
this system. The author and origin- freedom.
ator was a Scotsman, Clifford Hugh These principles are not con-
Douglas, born in 1879. sidered in the current economic sys-
Major Douglas was an engineer tem which operates as a monopoly.
commissioned with various pro- Douglas’ Three Proposals would put
jects during his career. He served financial credit at the service of the
as Chief Engineer and Manager for population. Ultimately, if gradually,
the British Westinghouse Company free association would ensure the
in India. He was the Deputy Chief supply of goods and services to re-
Electrical Engineer for the Buenos Clifford Hugh Douglas spond to a population’s needs. The
Aires and Pacific Railway, and in 1879-1952 individual would have restored to
England he was employed in the him or her the freedom to accept or
construction of the London Post Office Tube Rail- refuse each undertaking that was presented.
way. The money and credit monopolists immediately
During World War I, he was Assistant Super- recognized in Douglas’ proposals a threat to their
intendent at the Royal Aircraft Factory in Farnbor- privileged position. Determined to maintain their
ough, England. The British government had asked control, even though it was harmful to society, the
him to address “a certain amount of muddle” in the financial elite used their powerful influence over
factory’s accounts. governments, institutions and the channels of com-
Douglas never considered himself an econo- munication to boycott and malign Douglas’ teach-
mist, yet he proved himself to be a natural with his ings. First, it was a conspiracy of silence followed by
diagnosis of the major flaw he discovered at Farn- a misrepresentation of Douglas’ theories. After, they
borough, and realized it applied generally to today’s threw the public into confusion by denigrating the
economic system. Douglas proceeded to develop a term Social Credit. Finally, they pushed ambitious
solution that became known as Economic Democ- people to launch a political party.
But Douglas had a written legacy and developed
1 Social Credit can also be called Social Money, or a following in several countries, including Canada.
Economic Democracy to ensure there is no confusion with As a result, his teachings continue to be advanced.
China’s ‘social credit’ system. China’s system is the op- Governments have had to concede the veracity of
posite of Douglas’ and Louis Even’s formulation.

18 MICHAEL March/April 2024 www.michaeljournal.org