Posts Tagged ‘Social Credit’

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.

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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.