Salient. Official Newspaper of the Victoria University Students' Association. Vol 41 No. 21. August 28 1978

The Social Credit Reaction to Modern Monopoly Capitalism

[ unclear: The] Social Credit Reaction to [ unclear: Modern] Monopoly Capitalism

[ unclear: om] the 'A + B Theorem' of the inter [ unclear: wa] ears to Beetham's 'declining monetary [ unclear: bas] in 1978, there is a common thread [ unclear: run ng] through all of Social Credit's [ unclear: thi ing;] somehow or another there is [ unclear: not ough] money around for the econ [ unclear: om o] grow in an unfettered manner. [ unclear: The] money supply must be increased.

[ unclear: hen] pressed, contemporary Social [ unclear: Cre ters] will admit to still believing in [ unclear: the A] + B Theorum", but its patent falsity [ unclear: has en] a source of great embarrassment over the years so it is no longer used as the mainstay of the Social Credit argument.

In its turn, the fact that most money comes into being as debt has served is 'proof' that there is a shortage of purchasing power, while the latest theory is that the monetary base of the economy is too small and still declining.

'We therefore,' writes Rands, 'have to emphasise that the main problem is bow to inject sufficient money into the economy to enable consumption to match production Without Inflation.' (The Problem of Money)

Social Credit will increase the monetary base of the economy and at the same time make sure that the supply of money is directly related to the 'availability of produced resources.' (Cause and Cure)

These glib assertions overlook the fact that there has been enough money in circulation in the past in New Zealand to maintain full employment for a large part of the last two decades, and furthermore, that the supply of money has actually increased faster than the production of goods and services.