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Henry Ford and Social Credit

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					                           Robots Don’t Buy Cars:
                       Henry Ford's Social Credit Insight
                                       Christopher M. Quigley
                                        B.Sc., M.M.I.I., M.A.




Our world lurches from financial crisis to financial crisis yet very few academics, reporters or
commentators point out the fatal flaw in current orthodox economic theory which is the central force
behind these crises. The flaw relates to the general LACK OF PURCHASING POWER in contemporary
society. As was explained by Major Clifford Douglas in his theory of Social Credit this weakness in
classical economic theory is not new and many scholars have explained the problem however,
increasingly, the solution is being conditioned out of people’s consciousness. The collapse of the
international banking system, as a result of the banking crisis has brought this Achilles heel of
Keynesian economics into sharp focus. The elite fear that the prospect of a “greater depression” will
force change that will eliminate their position of control and privilege. Hence the current “spin”
emanating from controlled media outlets.

What is the main objective of Social Credit? In essence it seeks to fairly compensate citizens with real
purchasing power and thus end the current "trans-national/robot out-sourcing" industrial policy of
American and European business leaders. It seeks to replace capital investment with human
investment. Why? Because robots though they do the work have no money. They do not buy cars,
raise families, and care for the well being of elderly parents. Robots do not use shampoo, eat food or
watch base ball. They do not babysit grand-children or change diapers. They do not munch a candy
bar or scoff a pizza. Therefore if robots end up doing all the work who has the money to consume the
products they produce? Americans and Europeans must stop looking on their nations simply as
mechanical economies and start to see them in simple human terms. Irish citizens must wake up and
smell the conceptual corruption in contemporary European Union economic policy.

Why is purchasing power so important? It is fundamental because without money no exchange can
take place. In order to understand what I am talking about let us look at the historical example set by
Henry Ford in 1920. He completely redefined "classical" economics through the policies undertaken by
the Ford Motor Company.

 Under "normal" economic theory it was assumed that a corporation could only maximise profits by
ideally becoming a monopoly which meant increasing price and limiting supply. Ford did the exact
opposite. He had a more holistic view of the role of the corporation in society. He understood the
synergetic relationship between money and goods. He DOUBLED the wages of his workers,
DECREASED the price of the Model T and in the process remade the Ford Motor Corporation and
remade America. (This policy was not inflationary because he knew he could at least double
production through increased efficiencies when he doubled wages. This is the essence of the
enlightened policy of Social Credit for communities rather than of monopoly credit for social elites
alone).
The Ford Company boomed. How did this happen? It was axiomatic. He understood the importance of
money and purchasing power in society. With "high" wages Ford's workers were able to make a good
living and have excess funds to save or spend. Accordingly their financial anxiety ceased and staff
turnover dropped by a multiple of five in one year. This dramatically decreased management expense
and increased productivity. Workers finally had peace of mind. With the increased disposable income
in the Detroit area the general economy boomed. All classes of economic sectors expanded. As a
result more workers, new business owners, company managers, insurance brokers, real estate
brokers, bankers, salesmen, craftsmen, delivery men, builders, farmers and retailers all could afford
Ford cars. Demand for the model T exploded through the increased buying power WHICH HE HAD
CREATED THROUGH MONEY DISTRIBUTION.

Like Major Clifford Douglas Ford understood economics and he understood the issue of PURCHASING
POWER. FOR HIM PURCHASING POWER WAS NOT CREDIT BUT CASH. HE REASLIZED THAT WITHOUT
THE MONEY TO PURCHASE HIS CARS POTENTIAL DEMAND WAS IRRELEVANT. THEREFORE HE
INITIALLY REDISTRIBUTED DIVIDENDS FROM THE OWNERS TO THE WORKERS. THIS INCREASED
GENERAL BUSINESS ACTIVITY AND TURNOVER EXPONENTIALLY. THESE INCREASED SALE BOOSTED
PROFITS TO SUCH A DEGREE THAT THE SAME OWNERS EVENTUALLY RECEIVED INCREASED
SUSTAINABLE DIVIDENDS. EVERYBODY WON. THIS BRILLIANT POLICY MADE THE COMPANY. It built up
the economy of Detroit and it helped define America as a country where a factory worker was
respected and well paid, not exploited, as had been the case throughout the English industrial
revolution. The "American Dream" was Ford’s vision made manifest. It was a dream brought to
fruition not through political fantasy but through the hard laws of economics, accounting, finance,
production, distribution and marketing. As Ford said:

       “Power and machinery, money and goods, are useful only as they set us
       free to live. They are but means to an end. For instance, I do not
       consider the machines which bear my name simply as machines. If that was
       all there was to it I would do something else. I take them as concrete
       evidence of the working out of a theory of business, which I hope is
       something more than a theory of business—a theory that looks toward
       making this world a better place in which to live. The fact that the
       commercial success of the Ford Motor Company has been most unusual is
       important only because it serves to demonstrate, in a way which no one
       can fail to understand, that the theory to date is right. Considered
       solely in this light I can criticize the prevailing system of industry
       and the organization of money and society from the standpoint of one who
       has not been beaten by them. As things are now organized, I could, were
       I thinking only selfishly, ask for no change. If I merely want money the
       present system is all right; it gives money in plenty to me. But I am
       thinking of service. The present system does not permit of the best
       service because it encourages every kind of waste—it keeps many men
       from getting the full return from service. And it is going nowhere. It
       is all a matter of better planning and adjustment.”

                                           Henry Ford
                                        "My Life and Work"
Compare for one moment the circumstances in Detroit in the 1920s and mainstream America, Ireland
and Europe today. The exact opposite is occurring. Meaningful wage levels are being destroyed. Real
buying power is contracting due to systematic out-sourcing of real jobs and the misguided use of
capital investment to destroy human potential. No jobs or low jobs means there is no money
circulating to consume what is produced. The system contracts and cannot hold. The cycle, once
started, feeds in on itself resulting in deeper and deeper deflation. Society slowly but surely hollows
out from the inside. All the while, as is so apparent in Ireland, folk do not fully understand the total
implications of what is happening due to "dumbed down" educational policies. To replace falling
wage (money) levels the banking elites have tried to substitute credit. This credit switch from
previously hard earned cash is an unstable arrangement because debt is very expensive and is non-
liquidating other than through savings, bankruptcy, lotto wins or death. This is no way to run nations
as it is totally unsustainable and unstable. It creates constant anxiety and eventual destitution and
depression among citizens. It is particularly ineffective now that most banks are actually insolvent and
are no longer in the position even to provide credit in the form of business loans, credit card facilities,
car loans, overdrafts or home equity draw-downs.

Thus in essence the “solution” to "the problem" in Ireland and Europe as a whole for that matter, is
enlightened redistribution of purchasing power. Currently too much power over such redistribution is
controlled by banks and associate entities. This money centralization is stagnating the system and the
fact that this arrangement failed to regulate itself, and caused a credit collapse, has accentuated the
speed of failure by multiples. It is time to change. Society must move on. The intellectual framework
to effect this change as demonstrated by Ford, and Douglas has been known for over 80 years. Its
successful implementation today would bring a renaissance to general commercial and societal
development. There is no more important function for academia today than to disseminate this vital
economic truth. To the elites, who must know the truth, this monopoly credit based boom-bust
phenomenon is obviously allowed to continue because they have control. Their ownership motivates
them to disregard consequences provided they are protected through privilege.

However, I believe that the truth is too odious to ignore anymore. The end result of the current
regressive financial policies is the on-going development of a modality which I call: “Techno-
Feudalism”. This “Techno-Feudalism” is bringing with it vast disparities in wealth, ownership and
opportunity. It is leading to the eventual obliteration of the middle classes in developed nations. It is
allowing global corporations engineer the slow Fabian demise of effective democratic institutions as
increasingly corporate boardrooms rather than governments are defining people’s destinies.
Untamed it will break traditional social cohesion and lead to mass unrest, depression and despair. Is
this not exactly what we are witnessing in Portugal, Spain, Ireland and Greece as we speak? But the
future does not have to be so bleak. The monetary solution of increasing actual purchasing power for
average Americans and Europeans is so obvious it is “madness” not to sort it out. The truth must be
allowed to break free.

“The organism has a right in natural law to draw sustenance from its environment. We cannot with
impunity abstract humanity from the natural world. ….

Unfortunately, the present financial system creates an ever greater deficiency of effective and
unattached purchasing power giving the illusion, through a distorted financial lens, of actual or
physical scarcity in the midst of actual and potential abundance…..

                                  Wallace Klinck, Social Credit Author
In the 1930s the engineer and self-taught economist Major Clifford Douglas claimed that society was
intellectually hypnotized and that only a drastic de-hypnotization and re-education could save it.
Douglas believed in people. He felt that individuals had far more goodness and potential than society
was allowing them for. He reckoned that if common folk were given enough freedom and leadership
they could move society and civilization into a new age. An age of extended liberty, discovery, art and
culture. The alternative he felt would be booms, busts, over-consumption, under-consumption,
excesses, depressions and wars. Eighty years later this is exactly what the world has experienced and
is continuing to experience. However, the period between each stage is narrowing and the level of
debt, instability and inequality are exploding beyond comprehension. To Social Credit followers of
Douglas this situation is not happening by accident; it is happening inevitably because the conceptual
flaws of the monopoly of credit and the fabricated scarcity of money was allowed to be perpetuated
by a privileged banking class.

The enlightened monetary and economic policies of Henry Ford and Clifford Douglas are heartfelt
attempts to bring about conceptual revolution to historical economic orthodoxy. It is incumbent on all
interested parties who desire to solve this problem of problems to become educated and aware of the
available solutions and to actively participate. Not to do so will allow the current “greater depression”
to expand and gain a greater grip on economic activity. History shows that such a development will
eventually lead to escalating strife as sure as night follows day. For those of us who wish to reject
regression in favour of progression we must strive to free contemporary economic policy from its
death waltz with outmoded Keynesian monetarism. We must help economic orthodoxy move on,
sanity demands it. The knowledge is there in Social Credit policy let us utilise it.

Note: Fabianism:Fabianism is the slow persistent application of socialist policy which achieves its
objective so gradually that most people do not realise the radical change in motion. The word is
named after the Roman general Quintus Fabius Maximus Verrucosus Cunctator (ca. 280 BC – 203 BC)
a Roman politician and general, who wore down Hannibal by many years of attrition rather that
through immediate direct open combat.




References:
"An Introduction To Social Credit"
Dr. Bryan W. Monahan
(Available on SCRIBD.COM)

"Social Credit"
Major Clifford Hugh Douglas
Mondo Politico.Com

"My Life and Work"
Henry Ford
In Collaboration with
Samuel Crowther
(C) 8th. November 2012 Christopher M. Quigley

				
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