Distributism

Distributism, the ownership of the means of production should be spread as widely as possible among the populace, rather than being centralized

URL = http://en.wikipedia.org/wiki/Distributism

See also: P2P and Distributism, by John Medaille.

Definition

"An economic system proposed by G. K. Chesterton and Hilaire Belloc that called for widely distributed small holdings of land and other productive assets. This system aimed at securing and protecting individual rights by enabling ordinary citizens to acquire a moderate ownership stake of income-generating property. Distributism was mainly concerned with breaking up current accumulations of wealth. It paid little attention to the ability of the modern corporation and the money- and credit-creating powers of central banks to accelerate growth and spread out ownership of newly added and transferred capital on credit repayable with future savings." (http://www.cesj.org/definitions/glossary.html)

Description

From the Wikipedia:

"Distributism, also known as distributionism and distributivism, is a third-way economic philosophy formulated by such Roman Catholic thinkers as G. K. Chesterton and Hilaire Belloc to apply the principles of Catholic Social Teaching articulated by the Roman Catholic Church, especially in Pope Leo XIII's encyclical Rerum Novarum and more expansively explained by Pope Pius XI's encyclical Quadragesimo Anno. According to distributism, the ownership of the means of production should be spread as widely as possible among the general populace, rather than being centralized under the control of the state (indirect socialism) or a few large businesses or wealthy private individuals (capitalism). A summary of distributism is found in Chesterton's statement: "Too much capitalism does not mean too many capitalists, but too few capitalists."

Essentially, distributism distinguishes itself by its distribution of property (not to be confused with redistribution of capital that would be carried out by most socialist ideologies). Distributism holds that, while socialism allows no individuals to own productive property (it all being under state, community, or workers' control), and capitalism allows only a few to own it, distributism itself seeks to ensure that most people will become owners of productive property. As Hilaire Belloc stated, the distributive state (that is, the state which has implemented distributism) contains "an agglomeration of families of varying wealth, but by far the greater number of owners of the means of production." This broader distribution does not extend to all property, but only to productive property; that is, that property which produces wealth, namely, the things needed for man to survive. It includes land, tools, etc.

Distributism has often been described as a third way of economic order opposing both socialism and capitalism. However, some have seen it more as an aspiration, which has been successfully realised in the short term by commitment to the principles of subsidiarity and solidarity (these being built into financially independent local co-operatives and family owned, small businesses)." (http://en.wikipedia.org/wiki/Distributism)

Distributive Movements

The Anglo-saxon Catholic tradition

"Distributism, also known as distributionism and distributivism, is a third-way economic philosophy formulated by such Catholic thinkers as G. K. Chesterton and Hilaire Belloc to apply the principles of social justice theoretically articulated by the Roman Catholic Church, especially in Pope Leo XIII's encyclical Rerum Novarum. According to distributism, the ownership of the means of production should be spread as widely as possible among the populace, rather than being centralized under the control of a few state bureaucrats (some forms of socialism) or a minority of resource-commanding individuals (capitalism). A summary of distributism is found in Chesterton's statement: "Too much capitalism does not mean too many capitalists, but too few capitalists" ("The Uses of Diversity", 1921)." (http://en.wikipedia.org/wiki/Distributism)

The French socialist distributist tradition of Jacques Duboin

Distributism is a set of reform ideas, to achieve a more egalitarian 'distributive economy', set forth by French socialist Jacques Duboin and the still existing journal La Grande Releve.

The following extracts only cover monetary reform and basic income propopals.

Social Money and the Distributive Economy

http://perso.wanadoo.fr/grande.releve/an_tc_justice.htm

Comments from P2P News 99: Thinking about monetary reform is not new. Already in the 1930's, spurred by the Great Depression and the social crisis of the time, many people were looking to monetary reform, a tradition which got `lost' in the successful golden era of Keynesianism. A few months ago I mentioned the proposals of Gesell. Another thinker of the same period was Jacques Duboin, who wrote Rareté et abundance in 1945. This idea fit in very well in the themes of our issues 97 and 98, dedicated to thinking about scarcity (of nature AND of purchasing power in much of the South) and abundance (of productive capacity). Jacques Duboin came up with a set of proposals for a `distributive economy' and his work is continued by the journal La Grande Releve. The second item is a recent investigation by the journal of how the ideas of the distributive economy are related to complentary currencies.

1. The distributive economy and the basic income

"The task is thus to abolish this pattern of accumulation, inherent in the conception of capitalist money. If man can do nothing to change the laws of nature, he must, on the contrary, be able to change the rules of his own game.This is the aim of our proposition of a distributive economy, or economy of the needs, in which money cannot accumulate. Distributive money is strictly consumerist in nature : it is only a purchasing power, it is used just once to hand out goods and services from the producers to the consumers, it does not circulate, it cannot be invested to bear interest and is no longer anonymous.

This is the only way in which any investment can be decided taking into account other requirements than financial return on capital. The management of goods and services will be established for the benefit of the whole community, while having regard to ecological imperatives, only if instead of being submitted only to the blind forces of the market, it is established at the end of debates, in which all human, social, ecological, moral, ethical aspects, can be taken into consideration.Actually, the aim of our propositions is to invent democracy in economy. We have been thinking a lot over this problem, particularly because it opens prospects that are bright. We think that any person, who is born in today's world, is entitled to the right of living in the best way that is possible, with the only limit that it does not prevent the other people and their descendants from having the same rights. It's why in distributive economy, every one, from his birth to his death, is attributed an income.

However, we think also that any right must go together with a duty, here,the economic duty to keep things working.Thus, a Social Income is associated with a Social Service to share the goods, as well as the tasks, between all.This implies the creation, at various levels (local, regional, national, european, etc.), of say, Social and Economical Councils (SEC), democratically constituted and acting according to the principle of subsidiarity. Economic democracy is at last attained by granting to these Councils the power of creating money. This power is taken away from the credit banks that now use it in an arbitrary way. The money created, in the modern computerised fashion, is also used to finance the needed investments for organisations and companies, who are of course accountable for them. In a word, in the distributive economy, all that is humanly and physically possible will be made financially possible. Thus, the SECs will have charge of the management of both aspects of the distributive economy. To manage the social income, they have to estimate the amounts of purchasing power to be distributed periodically (each month, for example). In a broad sense, this problem consists in evaluating the production of output in a given time. The factors to take into account are consumer demand, limiting conditions, public service requirements and planned investments. The sum total of all social income, for a given period of time, is the difference between the value of estimated production output and that of the approved investments. The second charge of the SEC is evidently linked to this. Sharing the tasks involves that the social service is effected by each and everyone throughout his active life, taking into account his aptitudes, and subject to community needs."

Special Issue of La Grande Releve, the journal of the movement, dedicated to the life and ideas of the founder. See at http://perso.wanadoo.fr/grande.releve/r_contenus/760.htm

2. The Distributive Economy and Complementary Currencies

URL = http://perso.wanadoo.fr/grande.releve/an_tc_money.htm

"It's time to realize that mankind is now in possession of the mastery of production of goods and services. If the big problems of the past were those of production to avoid scarcity, they are now those of distribution of a potentially abundant production. The revolutionary transformation of our means of production have to be used to change our economic and social relations. Profit can no longer be the nerve of economy ! This implies that the capitalistic money (created by banks in relation to anticipated profits) has to be replaced by a new kind of money, the role of which will be simply to adjust the total income of consumers to the amount of goods and services that have been ecologically produced for them. It is a consumption money, canceled when it has been used by a consumer. It cannot be hoarded or lent at interest. It is from local experiments, under democratic control, that this kind of money, let us call it «  social money », has to prove oneself and then be extended on larger areas. In this paper some attempts of implementation of social money in various places of Europe and Latin America are analyzed.

Since Michael Linton initiated in British Columbia the concept of "complementary community currencies" in 1984, thousands of such currencies have been implemented around the world and are the subject of a number of theoretical works or experiments. Japan seems to become a world leader in promoting complementary community currencies to solve the socioeconomic problems it faces since the early 1990's (such as aging, unemployment and economic slump) based on an unsustainable system. In a series of projects, called Eco Money Projects, more than 40 different types of complementary currencies are currently experimented in Japan in order to determine :

- which is the best technologie (from high-tech smart cards to low-tech paper notes) ;

- which is the right scale (from mountain villages of 800 people to area of 10 million people) ;

- how many functions can be compatible on a single smart card (1 to 27, from elderly and/or child care, local unemployment, small business loyalty schemes, ...)

According to the results, a very large scale project could be initiated.It is beyond to the scope of this paper to review all the experiments involving complementary or social currencies in progress in the world. A comprehensive review can be found on the web. In the galaxy of complementary currencies one must discriminate between on the one hand, "moneys with social aim" the goal of which is to solve a series of social problems and, more generally, to give a good living standard to people, and on the other hand, "complementary currencies" aimed at keeping running local economy. Complementary currencies have not for aim to replace but only to complement the legal national currency.

In the following we will give some examples of these two kinds of currencies. The only role of the new currency is to allow the transfer of the production to the consumers. This so-called "distributive money" is strictly consumerist in nature : it is only used for payment, it does not circulate since it is cancelled as soon as it has been used by the consumer, it cannot be invested to bear interest and is no longer anonymous. However, term payments are still possible.The amounts to be distributed periodically (each month, for example) are figured in the same computerised fashion as the transactions now made routinely by stock exchange and financial markets. In a broad sense, the problem consists in evaluating the production to output in a given time. The factors to take into account are consumer demand, ecological and environmental protection, public service requirements and planned investments. The sum total of all "social income" distributed is the difference between the value of estimated production output and that of the approved investments, for a given period of time. Considering that all citizens of a region are equal heirs to the fruits of labour and research having led to our present means of production, Jacques Duboin proposed the same social income for all, in other words economic equality. But feedback from a majority of people shows that they are not prepared for such a radical move. The goal of economic equality must then be envisioned only in the long term.

A transition is thus necessary: To accelerate the advance toward distributive economics, we propose to share the buying power in the form of a citizenship income, calculated on the basis of what we call a "civic contract".They are aimed at stimulating individual initiative, innovation and creativity while taking into account the increasing complexity of the economic structure Their objective is to develop autonomy and responsibility in the citizen, to give him the opportunity of directing his own life, to let him make a choice of his activities while reckoning their value even if not measurable in traditional economic fashion."

Discussion

Is Distributism Catholic?

David W. Cooney on May 22, 2011:

"From time to time, readers of The Distributist Review comment on how many articles we have specifically relating to Catholic teaching. There seems to be a view that the case for Distributism should be made on the basis of the economic argument alone, without specific reference to any specific religious view, lest we drive away non-Catholics. This raises a legitimate question for everyone considering Distributism. Is Distributism Catholic? The answer to the question is both yes and no. In the interest of full disclosure, I am Catholic, as are the majority of the writers for The Distributist Review. This will come as no surprise to those who have read more than a few of our articles, but some of our articles have been written by non-Catholics. However, I am digressing from the point which is to address why the answer to the question, “Is Distributism Catholic?” is both yes and no.

• The Reason Distributism is not Specifically Catholic

Distributism is based on philosophical ideas. Contrary to the understanding of many, philosophy is not the same as theology or religion. It is a separate field even if the topics overlap. Many of the principles put forth by Distributism can be also found in the teachings of other religions and cultures from around the world. Many of the philosophical teachings that are the basis of Distributism pre-date Christianity. Aristotle advocated many of the same positions as Distributists. Therefore, these philosophical views cannot be said to be specifically Catholic. Additionally, just as there isn’t one strict form of government compatible with Catholicism, there is not just one economic system that is compatible with Catholicism. It is possible to have a capitalist system that is compatible with Catholicism, but many elements currently accepted as part of Capitalism throughout the world—like usury—would have to be removed from it to do so.

• The Reason Distributism is Catholic

Distributism as a distinct economic view came into being as a result of papal teaching. Popes addressing issues of economic and social justice wrote encyclicals which inspired groups of Catholics to form a movement that attempted to present those issues, and solutions to them, to the wider public. This movement took the name of Distributism or Distributivism (although its founders voiced their desire for a better name). Although this movement included non-Catholics from the beginning, the positions advocated by Distributists are consistent with Catholic teachings on economic and social justice. In other words, Distributism consists of philosophical positions on economic and social structures that are compatible with the Catholic Faith. One can no more separate Distributism from Catholic teaching than one can separate the original United States Constitution from the writings of John Locke.

• What Does This Mean for Non-Catholics Considering Distributism?

The real question for non-Catholics considering Distributism is whether they can accept the philosophical positions that are the basis of Distributism. One need not be a Catholic to be a Distributist any more than one needs to be Catholic to believe those who can should help those in need. The point is that acceptance of Distributism by non-Catholics is not based on the fact it is consistent with Catholicism; it is based on the fact that Distributism is a philosophically sound and practical economic and social view. Catholics who accept Distributism do so on both grounds.

You might be asking why, if this is the case, there are so many specifically Catholic articles on The Distributist Review. Our society promotes the error that faith should be confined within the walls of the home and place of worship, that it has no bearing on economics and politics and should essentially be hidden from public life. Catholicism teaches, as do other faiths, that faith applies to all aspects of life. Capitalism as practiced in the world today readily accepts many practices that are not compatible with the Catholic Faith. Therefore, we remind our fellow Catholics of this point. We present the clear and consistent teaching of the Church and ask our fellow Catholics to reconcile their own views to that teaching. Even if they continue to reject certain aspects of Distributism as an economic system, they cannot continue to accept or ignore the aspects of Capitalism that are incompatible with the Faith. We encourage non-Catholics to do the same in regard to their faiths and have welcomed such comments posted by our readers.

We believe it would be wrong, it would be dishonest, to hide the fact that Distributism has ties to Catholic teaching. What would be the purpose of doing so, to hide the fact from non-Catholics? No. We will be open about these ties, and we expect any non-Catholics that accept Distributist ideas as compatible with their faiths to be open about the fact. It is not something that needs to be hidden." (http://distributistreview.com/mag/2011/05/is-distributism-catholic/)

More Information

The Wikipedia entry on Distributism is at http://en.wikipedia.org/wiki/Distributism

We received the following bibliographic advice from Dave Taylor:

"The English Distributist version of this was developed primarily by "The Chesterbelloc", i.e. the historian Hilaire Belloc (notably in The Servile State and The Restoration of Property) and the extraordinarily humorous and insightful G K Chesterton (most obviously in An Outline of Sanity, but in passing comments in the hundred books and many thousands of articles he wrote over thirtyfive years). All these, if not online, are still in print. (In England, via Family Publications, Oxford). To get what they are saying in context, you need to be aware of its period (1906-36): that of the renaming of Ire-Land as Eire (peace) and the development there of a well-distributed, intelligent and friendly (if after centuries of subjugation, still crude and impoverished) agricultural society. The Chesterton Institute in Oxford has been running a Sane Economy project (at http://www.secondspring.co.uk/)...There has also been a lot of activity in the (largely American) Yahoo Distributism group (http://groups.yahoogroups.com/groups/distributism).

The Australian Race Mathews' Jobs of our Own: Building a Stakeholder Society: Altenatives to the Market and the State (1999, Comerford and Miller, London) outlines the pre-history of Distributism and successful applications in Canada (the Antigonish movement) and Spain (the still thriving Mondragon co-operative)." "