This work approaches the phenomenon of guild socialism from a new perspective, focusing on the Douglas Social Credit movement. It explores the key ideas, gives an overview of the main theories and traces their subsequent history. Thoroughly researched, it provides original material relevant to the field of political economy. This early approach to non-equilibrium economics reveals the extent of the incompatibility between capitalist growth economics and social and environmental sustainability.

Based upon the work of C. H. Douglas, this paper explores the role of debt in the economy. In the 1920s Douglas observed the workings of financial mechanisms within the real economy, noting that they could be modified to achieve a socially and ecologically sustainable economics of sufficiency. Douglas' exploration of the role of debt in the economy accords well with Veblen's institutional analysis, while his writing reverberates with Veblenian terminology. As an economist, Douglas is both intuitive and eclectic, and, (...) as Mehta observes, ‘no writer in economics has made his thought so opaque to the reader.’ Nevertheless, Douglas' rejection by orthodoxy was due in no small measure to the impracticality of tailoring his theoretical observations within the constraints of neo-classical general free market equilibrium theory. Although they gave rise to a widespread popular movement, Douglas' proposals for debt-free finance of production could not be accommodated within economic orthodoxy. (shrink)