Page 15 - Michael 2024 May

“Man, through his work, enters into two

inheritances: the inheritance of
what is given to the whole of humanity
in the resources of nature, and the
inheritance of what others have already de-
veloped on the basis of those resources...”

Saint John Paul II, Laborem exercens

Real Credit. We can consider money to be Financial
Credit, remembering that, rightly, money has a rela-
tionship to Real Credit, which is owned by society as and inventions, etc. responsible for more than 90% of
a whole. Consider the several components of Real the country’s production today. In fact, when we speak
Credit: the labour and competency of those engaged of the poor, it is entirely correct to call this group de-
in work, and other elements, described below, which prived, because these are people who have been de-
are the property of all. nied their inheritance. The Social Credit (or Economic
First, there are natural resources, which are not pro- Democracy) dividend is therefore based on two ration-
duced by any man but are a gift created by God which ales: the inheritance of natural resources and the in-
must be at the service of all. There are also inventions, ventions of previous generations. This is precisely what
discoveries and innovations which have been made, Pope Saint John Paul II wrote in 1981 in his encyclical
developed and passed down from one generation to letter Laborem exercens, on human work (no. 13).
the next. This cultural heritage is the largest factor in “Working at any workbench, whether a relatively
production today. No man can claim, more than any primitive or an ultramodern one, a man can easily
other, ownership of this form of progress, which is the see that through his work, he enters into two inherit-
fruit of past generations. ances: the inheritance of what is given to the whole
It is today’s workers who mobilized these resour- of humanity in the resources of nature, and the in-
ces, and these folks are entitled to remuneration in the heritance of what others have already developed on
form of wages, salaries, etc. But consider our earlier the basis of those resources, primarily by developing
example of a capitalist who does not personally par- technology, that is to say, by producing a whole col-
ticipate in the industry where he invested his capital lection of increasingly perfect instruments for work. In
and yet earned dividends. We consider that this per- working, man also ‘enters into the labour of others’.”
son is entitled to a share of the profitable result of his Addressing the lack of purchasing power
invested capital.
Another reason to distribute a dividend to each cit-
The largest component of modern production is a izen is a function of mathematics. The current financial
form of capital which we earlier identified as the sum of system creates a gap; a chronic lack of purchasing power.
discoveries, progressive inventions, etc. passed down Today, goods are offered for sale at a given price.
from earlier generations. As a result of this form of cap- People who have money buy these goods by exchang-
ital, society enjoys a great volume of production with ing cash with a vendor. This method allows people who
fewer labour inputs. Since all living beings are equal
joint heirs of this immense capital, which is always in- have money to choose and purchase what they want.
creasing, all are entitled to a share of its fruits (just as Social Credit would not change this system of dis-
was the capitalist shareholder earlier described). bursing goods. This method is both flexible and prac-
We say that the employee is entitled to a social tical—provided, of course, that individuals have the
purchasing power to buy the goods which will satisfy
dividend and to his salary. The person who is not em- their needs.
ployed, and without a salary, is entitled to a dividend.
We call it a social dividend because it is the fruit of a Purchasing power in the hands of those who have
commonly owned social capital. needs is precisely where the present system is flawed,
and it is this defect that Social Credit would correct.
A double heritage Production runs smoothly when it is financed
Karl Marx proposed that the work of the proletar- properly. Some of the money used to finance produc-
iat was the source of all wealth. Adam Smith said that tion will pay for labour costs and constitutes purchas-
capital, by the person investing money in a business, ing power for those who receive it. But bear in mind
was the source. Both men developed economic theor- the following:
ies but ignored the legacy that Douglas called the cul- 1. Industry does not distribute purchasing power
tural heritage. This is the heritage of natural resources at the same rate that it generates prices. u

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