Posts Tagged ‘Social Credit’

Rishi Sunak Goes Social Credit

July 6, 2020

Zelo Street put up another piece yesterday showing the glaring hypocrisy of the Tory party and their lapdog press. According to the Absurder, the Resolution Foundation had been in talks with chancellor Rishi Sunak to give everyone in Britain vouchers to spend in shops and businesses. Adults would receive vouchers worth £500, while children would get half the amount, £250. Sunak was being urged to accept the scheme as it would stimulate the economy, which has been badly hit by the lockdown. The Tory papers the Heil and the Scum also reported this, and thought it was a great idea.

This contrasts very strongly with their attitude last May, when Jeremy Corbyn also floated the idea of giving the British people free money in UBI – Universal Basic Income. The Scum claimed that if everyone was given £70 a week, then this would raise the welfare bill from £188 billion to £288 billion a year. The Heil reported that when the scheme was tried out in Finland, it made people happier but didn’t improve employment levels and would prove ‘unsustainable’.

But it isn’t just Finland that is experimenting with UBI. It was introduced in Spain a few weeks ago as Mike reported on his blog. Spain is a poorer country than Britain, but their willingness to try it contradicts the government’s excuse for not doing so, which is that Britain can’t afford it.

But now Rishi Sunak is considering it, and the Tory papers are praising him for it, whereas they vilified Corbyn. Zelo Street commented

‘Clearly, since May last year, a “free money” handout has stopped being a ghastly socialist aberration, and is now an excellent wheeze. Cos Rishi will be doing it.

The press will do anything to flog more papers. Including a little socialism.’

https://zelo-street.blogspot.com/2020/07/government-handouts-yeah-but-no-but.html

Of course, the reason the right-wing press are supporting Sunak whereas they condemned Corbyn, is because the two men have very different reasons for recommending it. In Corbyn’s case it was a desire to help empower ordinary people and stop the poverty the Tories have inflicted on them through low wages, job insecurity and the murderous system of benefit cuts and sanctions. The Tories, by contrast, heartily despise the poor. In the interest of maintaining healthy profits, they have always pursued low wages and punishing the poor, the sick, the disabled and the unemployed with minimal state welfare provision. This is now for many people below the amount needed to keep body and soul together. Where it is available at all, that is. That’s if people are able to get it after waiting five weeks for their first payment, and not getting sanctioned for the flimsiest excuse. This is all done to reduce the tax bill for the 1 per cent. Those able to work must be kept poor and desperate so that they will accept any job and won’t be able to demand higher wages. As for the long-term unemployed and the disabled, they are biologically inferior ‘useless eaters’, exactly as the Nazis viewed them, who should be allowed to starve to death.

Sunak’s motive for embracing UBI is so that the proles can spend it, thus keeping businesses afloat and maintaining or boosting profits. It’s socialism for the rich, as modern corporatism has been described. Just as welfare benefits are cut or completely removed for working people and the poor, so corporatism rewards business, and particularly big business, through a system of subsidies and tax breaks. It’s why one book attacking this system was titled Take the Rich Off Welfare.

Sunak’s version of UBI also harks back to a similar scheme founded in the 1920s by the British officer, Major C.H. Douglas. Aware of the widespread poverty of his day, Douglas argued that it was ‘poverty in the midst of plenty’. The goods were available to satisfy people’s needs, but they were unable to afford them. He therefore recommended that the government should issue vouchers to solve this problem and enable people to buy the goods they desperately needed.

The idea has never really taken off. It was included among the policies Oswald Mosley adopted for his New Party after it split from Labour in the late ’20s and early ’30s. There was also a Social Credit party in British Columbia in Canada, though I believe that’s an extreme right-wing, anti-immigrant party for Anglophone Whites which doesn’t actually support the Social Credit economic policy.

I’ve also seen something extremely similar to Social Credit used as the basis for an SF story. In Frederick Pohl 1950’s novella, ‘The Midas Plague’, the poor are bombarded with expensive goods and services which they must use and consume. They are punished if they don’t. As a result, in terms of material conditions the position of rich and poor is reversed: the poor live opulent lives, while the rich, who have to own their own possessions, live much more austerely. The whole point of this is to keep the economy booming and industry expanding.

We haven’t yet got to that point, and I don’t we ever will, if only because the wealthy ruling class, on whose behalf the Tories govern, are so against letting the poor get anything for free. Even when they need and deserve it. But unemployment is set to increase due to automation in the workplace. It’s been forecast that over the next 20 years about a 1/3 of jobs will be lost. 21st century Britain, and indeed much of the rest of the Developed World, could look like Judge Dredd’s MegaCity 1, where over 95 per cent of the population is unemployed and lives on welfare.

If that ever happens, then the government will need to implement something like Social Credit in order to give people both enough to live on and support business and industry.

Not that Sunak need go that far just yet. One of the reasons F.D. Roosevelt introduced state unemployment insurance for Americans as part of his New Deal was also to support industry. He, and liberal and socialist economists in Britain realized that if you give people money to support themselves during a recession, they will spend their way out of it. Both the poor, the unemployed and industry benefits. We could do the same now, by giving people a genuine living wage, raising unemployment and other benefits up to a level so that people can actually live on them and abolish the five-week waiting period and the sanctions system so that people don’t have to rely on food banks to save them from starvation.

But this would contradict the Tories’ favoured policies of keeping working people and the poor hungry and desperate.

Vox Political on the Basic Income Guarantee

May 21, 2016

Also on Thursday Mike put up another fascinating piece about the growing support for the Basic Income Guarantee. A non-party thinktank, Reform Scotland, has recommended replacing the current system of in-work benefits with a guaranteed basic income, in other words, a citizen wage. The report Mike quotes states that it would combat wage-slavery, by releasing employees from having to work for their living. Instead,

employers would find it difficult to exploit workers, and would be pushed to offer decent wages, good terms and employment conditions in order to attract workers. People would have greater freedom to pursue meaningful, suitable and appropriate employment rather than having to take any job to avoid poverty and destitution.

De-commodifying labor by decoupling work from income liberates people from the “tyranny of wage slavery” and leaves a space for innovation, creativitity and rebalances power relationships between wealthy, profit-motivated employers and employees.”

Mike in his comment on the piece states that if this was carried through, it could destroy 40 years of Tory employment policies. These are, after all, about getting the maximum amount of work from a cowed and impoverished workforce.

See Mike’s article at: http://voxpoliticalonline.com/2016/05/19/the-basic-income-guarantee-and-why-it-would-destroy-40-years-of-conservative-policy/

Something like it has already been done in a town in Canada. Even Sarah Palin when she was governor of Alaska did something very similar. She used the profits from the rights the oil industry had to pay to the Alaskan state to give a portion of them to Alaskan voters.

In fact, this is merely a modern form of a very, very old idea. The Utopian quasi-Socialist, Thomas Spence, in the early 19th century recommended breaking Britain up into a federation of autonomous parishes. These parishes would own the land around them, the rents from which would be used to give each man, woman and child a basic income. If you like, a citizen wage.

A similar idea was advocated in the 1920s by Major C.H. Douglas and his Social Credit Movement. This was before the Keynsian revolution supposedly made his ideas obsolete. Douglas noted that plenty of goods were available; it was just that the workers were unable to afford them. He therefore recommended that the government should issue a system of voucher so that people could purchase the items they needed.

A friend of mine with a background in economics also told me that there has been support for similar ideas for a citizen wage by the Social Democrats in Germany and elsewhere on the continent. Part of the argument here is that although relatively few people are employed in the manufacturing sector, nevertheless it is still extremely important to the economy. In order to stimulate consumption, and thus production, people should be given the means to purchase more consumer goods. And so the unemployed and working people should be given greater benefits, so they can buy the articles on which the economy depends.

You can imagine the screaming from the Tories and the Daily Heil from here, if this ever was proposed down here in England. There would be more bluster and ranting about the ‘squeezed’ middle classes, and punishing hard-working people in order to subsidize the lifestyle of welfare scroungers and chavs. Which doesn’t mean it should be done by any means. In fact, our economy and social welfare as an industrial and civilised nation may depend on it.

Meme on Capitalism and Low Wages

December 31, 2015

I found this meme over at 1000 Natural Shocks (over 18s only), explaining the real reason why capitalism will collapse.

Low Wage Capitalism Cartoon

This was actually one of the contradictions realised by the critics of orthodox economic theory, such as Major C.H. Douglas, the inventor of the Social Credit movement. He argued that Britain was suffering from ‘poverty amidst plenty’, where goods and services were available. It was just that ordinary people couldn’t afford them. He therefore recommended giving people vouchers as well as money so they could purchase food and other necessities.

Social Credit never took on, except in Western Canada where it’s another far-right, Nazi movement by any other name. The problem Douglas identified is real, and is getting worse. It was supposed to have been solved by Keynesianism and the welfare state, but as that was ostentatiously junked by Thatcher in favour of monetarism – though she did surreptitiously return to Keynesian economics later in her regime – the problem has got worse. It’s why a town in Canada and now Finland have tried to eradicate poverty by giving all their citizens a guaranteed income, and why similar schemes are being backed by parts of the German Social Democrats.