Page 53 - Reflexions of African Bishops and Priests

Samuel KLEDA Gaston RUWEZI Bernard KASANDA Valentin MASENGO Stanislas LUKUMWENA
Archbishop of Douala Bishop of Sakania Bishop of Mbujimayi Bishop of Kabinda Bishop Emeritus of
Cameroon Kipushi, Democratic Democratic Republic Democratic Republic Kole, Democratic
Republic of Congo of Congo of Congo Republic of Congo

Even then, salaries do not suffice to buy the all the prod- Lesson 6: Money and prices — the dividend
ucts necessary: we must find a solution to the problem. The dividend causes the money of the country to
This solution is Social Credit that would give a dividend augment when necessary and places this money directly
to all, including the employees who will always receive in the hands of the consumers. In order for this operation
an insufficient salary. This is because the prices of goods to be beneficial, the purchasing power of the consumers
will always be superior to the salaries distributed. This is must be strengthened. Purchasing power depends on
according to the theory of the Scottish engineer, Clifford two factors: the quantity of money in the hands of the
Hugh Douglas, who stated that A cannot buy A plus B.
buyer and the price of the products for sale. If the price
In fact, A represents the salary, which is only a con- diminishes, the purchasing power augments; if the price
stitutive part of prices, which are made up of other costs rises, then the purchasing power diminishes.
of production (B) such as materials to build with, taxes, Purchasing power cannot be increased with wage
banking fees, the upkeep and destruction of machinery, increases, since these increases in salaries are included
benefits, etc. The sale price (A+B) will always be superi- into prices. The national dividend does not enter into
or to the salary (A). Even if we raise the salaries, prices prices because it is new money distributed by the gov-
will also reflect this growth so that the salaries will never ernment, independently of the workers’ salary.
reach the same level as prices. In order to buy produc-
tion, there must be supplementary revenue outside of However, when there is more money in society,
salaries, at least equal to B. This is what the dividend of there could be a tendency towards raising prices, caus-
Social Credit would do. Neither selling on credit (a con- ing inflation. The government cannot impose price fixing,
sequence of the lack of purchasing power), hiring in jobs because that would discourage production. Hence the
that distribute salaries without augmenting the products Social Credit proposal to fight inflation through its tech-
(public works, the production of armaments, etc.), or nique of the “adjusted price” or compensated discount.
the favorable commercial balance of countries can be a The just price is the real cost of the product, of the
solution to the chronic lack of purchasing power. riches that have been consummated in order to have
Purchasing power cannot be linked to salaries be- this product. The consumer will then pay the price of the
cause there will be less and less remunerated employ- riches consumed and, so that the seller will not lose, So-
ment through technology. Even so, the goods of the cial Credit would pay the difference between the marked
earth are destined for everyone. How will we get to this price (sale price) and the just price or the cost of the
point, if it is only the salary that distributes the money riches consumed in order to have the product. This dif-
necessary to attain the wealth of the country? ference is called the “compensated discount.”
Full employment is not necessary in a highly indus- There exists then, three fundamental principles in
trialized society such as today when machinery replaces Social Credit: money issued without debt by society, a
man with hardly any effort. In today’s society we create monthly dividend granted to all citizens and the com-
artificial needs and produce goods that last for only a pensated discount. We have remarked that in the So-
brief time, creating a mentality of materialism and con- cial Credit system, money remains an exact reflection
sumerism. The dividend would permit people to replace of reality; it is created when a new product is made and
salaried work with activities that are more freeing and disappears when that same product disappears or is
useful for men, especially for family life. consumed.
The dividend is the solution that guarantees pur- Social Credit is really economic democracy as the
chasing power. It comes from Social Credit and consti- consumers are assured an adequate amount of purchas-
tutes a fundamental right that each man is the co-heir ing power and plays a decisive role in the choices of the
of the natural resources and technology or invention of goods to produce, or rather decide what will be pro-
those who preceded him. duced by the usage of their monetary vote. u

www.michaeljournal.org April, 2011 session 53