<p>Starting with reading Robert Heinlein's Beyond This Horizon many years ago, I've run across the "social credit" schemes. Most recently, it appears to hve shown up again in the ideas on <a href="http://positivemoney.org/" rel="nofollow noreferrer">http://positivemoney.org/</a>.</p>

<p>Now, while I've read a lot of economics, I am by no means an economist; on the other hand, I'm reasonably mathematically sophisticated. Looking at these schemes, they appear mathematically plausible, although how we could get there from here much less so.</p>

<p>But I've done a little searching and haven't found much criticism of these schemes from mainstream economists; in fact, I haven't found much discussion at all.</p>

<p>How would mainstream economics address these ideas?</p>

CC BY-SA 3.0
2016-12-17T07:34:15.420Z
We've been through some of this in various forms many times already. The main problem is that "Positive Money" is based on a nonsensical view of fractional reserve banking, so you could start with our questions on that. "Compensated price" seems to be based on the idea that a dead engineer is a better price-setter than the market, and I don't know where to start with that - do you really *need* it taking apart?
410 gone
CC BY-SA 3.0
2016-12-17T16:59:29.327Z
I'd be happy with links to the other questions. But yeah, I wouldn't have bothered to type the question if I didn't hope for an actual answer.
Charlie Martin
<macroeconomics><monetary-policy>
"Social Credit" and "Positive Money" schemes: what are the economic critiques?
Charlie Martin
# "Social Credit" and "Positive Money" schemes: what are the economic critiques?

(Asked by: username_0 on 2016-12-16)

Starting with reading Robert Heinlein's Beyond This Horizon many years ago, I've run across the "social credit" schemes. Most recently, it appears to hve shown up again in the ideas on <http://positivemoney.org/>.

Now, while I've read a lot of economics, I am by no means an economist; on the other hand, I'm reasonably mathematically sophisticated. Looking at these schemes, they appear mathematically plausible, although how we could get there from here much less so.

But I've done a little searching and haven't found much criticism of these schemes from mainstream economists; in fact, I haven't found much discussion at all.

How would mainstream economics address these ideas?

**Tags:** macroeconomics, monetary-policy

> **Comments:**
> **username_1**: We've been through some of this in various forms many times already. The main problem is that "Positive Money" is based on a nonsensical view of fractional reserve banking, so you could start with our questions on that. "Compensated price" seems to be based on the idea that a dead engineer is a better price-setter than the market, and I don't know where to start with that - do you really *need* it taking apart?  
> **username_0**: I'd be happy with links to the other questions. But yeah, I wouldn't have bothered to type the question if I didn't hope for an actual answer.  

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