Social Credit policy

Press, 30 April 1981, Page 16

Social Credit policy

Sir, — Regarding R. A. Cook’s letter (April 17), Major Douglas's books are infrequently read because they are not an official text book, and also very few people are indepth philosophy readers. Howcver, crisis situations engender interest in alternative ideas, as shown by the enormous demand for Social Credit literature. Mr J. Sharp seems confused between purchasing power and money in circulation. We are suffering from cost-push inflation, with the consumer struggling to keep up with rising prices. A major cost is the interest rate attached to working funds and investment capital, resulting indirectly from the ethical paucity of Labour and National policies in openly encouraging usury, or non-productive financial speculation for its own sake. Our nation’s creative spirit is dying because the reward for work is less than the profits from money-lend-ing. There is too much money available at high interest rates and not enough at economic rates for the productive sector. — Yours, etc., P. NORMAN DAVEY. April 23, 1981.

Sir, — Would Allen Frampton (April 21) explain why Social Credit’s A plus B Theorem is not inflationary? A manufacturer pays out weekly wages of $lOOO (A) and weekly production costs of $lOOO (B). These two costs (A) plus (B), $2OOO, go into the price of the finished product. Social Credit argues that as only $lOOO (A) was paid out in consumer wages, there is a defiency in purchasing power of $lOOO, the money paid to (B) in costs. They would inject $lOOO extra purchasing power to make up the deficiency. They overlook the fact that the $lOOO paid out in costs is still in circulation and will at some stage end up in a consumer pocket, which would indicate there is no defiency of money in circulation at all. If Mr Frampton can explain away this apparent error he will do Social Credit a great service. — Yours, etc., J. SHARP. April 23, 1981.