TOOLKIT FOR A NEW ECONOMY
Social Credit monetary reform is based on the conviction that: whatever is socially and environmentally desirable, and physically attainable, is financially possible.

A range of tools has been identified and developed as Social Credit Party policy that will be used to create and manage a monetary reform economy. These tools will create wealth for all New Zealanders, redistribute that wealth where necessary, direct investment funds toward the real economy of goods and services, discourage speculation and most importantly, significantly reduce the burden of compounding interest.

MONETARY TOOLS

 

Core to our monetary policy is a new Reserve Bank Monetary Authority (RBMA) that can provide and manage money as a public utility, for the economic, social and environmental benefit of New Zealand and its people.  The RBMA will have the status similar to the judiciary and be answerable to parliament. The RBMA will employ the tool of money creation, (just the same as banks do now).  That new money may be lent into the economy interest-free or spent debt-free. It will be the responsibility of the RBMA to determine the proportion of each, according to the needs of the country each year.

 

 

 

Recognising that the current tax system is unwieldy and inherently unjust but that some form of revenue gathering may be desirable, a progressively introduced Financial Transactions Tax and a Foreign Transactions Surcharge are tools that will simplify revenue gathering and deter rampant speculation.

 

As computerisation, robotics, and artificial intelligence take over more of our work there are likely to be fewer jobs. We regard income as a human right, not tied to paid work but derived from ownership, inheritance and residency. Growing naturally from our monetary reform concepts are Kiwi Income and Kiwi Dividend, forming a basic income for every citizen or resident of New Zealand, including children.

FISCAL TOOLS

1
1

KEY ACTIONS

1
2
3
4
5

Interest free loans (overdraft/revolving credit facility) available from the sovereign Reserve Bank Monetary Authority (RBMA) at an administration cost only.​

The issue of new money from the RBMA, to be spent into circulation by the New Zealand Government at an administration cost only.

A Financial Transactions Tax (FTT), to replace GST, will be levied on all withdrawals from bank accounts.

A Foreign Transactions Surcharge (FTS).

The “Repayment Term” factor instead of the “Interest Rate” factor to be used in managing demand inflation.

USING THE TOOLKIT

Monetary Tools – These tools are seen as a replacement source of lending or means of increasing the nation's money supply, not as an addition to the current system. Despite the use of interest free/low interest rate Reserve Bank loans by the 1935 Labour Government, and the Reserve Bank overdraft facility enjoyed by New Zealand's producer boards up until the early 1980s, the above monetary tools (1, 2 & 5) have not been utilised in a modern New Zealand economic environment. With that in mind, a staged or progressive approach will be used to complete our monetary reform programme to allow adjustments for the effects of unforeseen events or behaviours.

Fiscal Tools - Despite being advocated since the 1970s in some form or another, the above fiscal tools (3 & 4) have never been implemented on a nationwide scale. The FTT tax has been used on occasions within a country i.e. on a state level. Again, a staged or progressive approach will be used to complete the fiscal programme to allow adjustments for the effects of unforeseen events or behaviours.

Interest free loans (overdraft/revolving credit facility) available from the sovereign Reserve Bank Monetary Authority (RBMA) at an administration cost only.​

1

For:

• Investment in public and local authority infrastructure – public transport, sewage systems, public amenities, sustainable power alternatives, major environmental projects, etc;

• Providing a short term overdraft facility for the government to manage its cash flow requirements;

• Facilitating reciprocal trade arrangements made with other nations;

• Lending to trading banks to on-lend to their commercial, business, farming and corporate clients;

• Lending to first home buyers to increase home ownership; and

• Removing speculative demand from overseas investors chasing returns from high interest rates. A low interest rate policy will create a more realistic and stable trading value for the NZ dollar.

2

The issue of new money from the RBMA, to be spent into circulation by the New Zealand Government at an administration cost only:


• To fund all or some Government expenditure, i.e. the full provision of health and education;

• To help fund Kiwi Income (a stable regular basic income); and

• To help fund Kiwi Dividend (an amount that fluctuates with the performance of the economy).

3

A Financial Transactions Tax (FTT), to replace GST, to be levied on all withdrawals from bank accounts:


• To control speculative demand;

• To reduce the tax paid by low and middle income earners;

• To remove tax compliance costs for business and individuals;

• To widen the tax base and include the finance sector.

4

A Foreign Transactions Surcharge (FTS):


• To control speculative demand on our currency;

• To use as one tool to balance the current account in the short term;

• To progressively fund the repayment of our overseas debt over the long term;

• To reduce domestic taxes. 

5

The “Repayment Term” factor instead of the “Interest Rate” factor to be used in managing demand inflation.


• Loan demand will be managed by increasing or decreasing the loan term;

• Home loan terms will be adjusted according to family incomes.

Authorised by Anne Leitch, Secretary, 42 Reyburn House Lane, Whangarei

secretary@socialcredit.nz

Copyright Social Credit Party 2019