Page 44 - Reflexions of African Bishops and Priests

Economic democracy production by consumers” and “integral bookkeeping”,

which are the pivot of Douglas’s system.
(continued from page 37)
Real credit has a twofold aspect. The first one is
its upbringing, is abandoned?” the capacity to deliver goods and services. The second
Three basic ideas one is the existence of an effective demand for those

According to Douglas, the philosophy rests on goods and services. 2
three basic ideas : The consumers’ effective demand is production
1
(a) “That the financial credit pretends to be, sought after by consumers, made up of consumable
but is not, a reflection of real credit as defined in; goods and services that answer human needs in quan-
(b) Real credit is a correct estimate or, if it be tity and quality: food, clothes, and other basic needs.
preferred, belief as to the capacity of a community Douglas adds: “it would be necessary that an effective
demand – that is to say, a demand backed by ‘money’
to deliver goods and services as, when, and where 3
required; – should be forthcoming from the public.”
(c) That the cost of production is consump- The real credit of a modern producing community,
tion.” its capacity to produce wealth in its real sense, rests
not only on material factors but also intangible ones,
These three proposals are linked to the “control of
2 Douglas C.H.; Credit-Power and Democracy, Stanley Nott,
1 Douglas C.H., The New and the Old Economics, The London, (1920), 4 edition, 1934, p. 102
th
Scots Free Press, Edinburgh, 1936, p. 5 3 Douglas C.H.; ibid, p. 104

Who was Clifford Hugh Douglas?

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