The problems with money and a proposal for a solution

Money makes the world turn round. It promises to buy anything that money can buy. It allows people to sell their skills and services for money, and to use that money to buy products and services from others. Without money, people would make products mainly for their own needs and wants. Money allows freedom of trade and prosperity for all, which leads to advancements in society unachievable otherwise.

Despite the many advances made by humans, the state of the human race is in a state of despair. There is mass poverty and wealth is in too few hands. The few rich players are draining everyone else dry. One of the problems of money is that there are no limits set to its accumulation eventually leading to one person accumulating all the wealth of everyone else. Without such limits, the system is unsustainable.

Limits of money and wealth accumulation should be set and when those limits are reached, it should overflow down to the bottom who have been drained the most. The motivation of moving money in the system by accumulating money could be maintained by other recognition such as distinguished awards of merit.

People have always needed banks to save money and nations have always needed banks to issue money. Nations charter banks to issue money into their society by allowing them to lending it out at an interest. They are mandated to issue just the right amount of money into the system to keep it working and growing smoothly. Bankers have gained control of the money supply and have turned money into a commodity and have let markets speculate on its value. By turning money into a commodity, international supply and demand determine how much of it is issued and available in each nation.

This results in a supply of money dictated by the wants of international speculators, instead of the needs of citizens. And it results in nations controlling the economy of other nations, and the quality of life of their citizens. The past record of banks show that they have managed the world's money supply by cycles of over and under supply. Over supply of money causes the inefficiencies and uncertainties of inflation, at great loss to the ones who have saved for such difficult times, the elderly and pensioned. Under supply of money causes depression and stagnation and a great suffering of the struggling masses.

A proposal for a new international money system.

Computers and other advances in technology make it possible for the first time in human history to do away with centralized banks and to have a system of decentralized banks where each person is their own bank. Each person is chartered to issue enough money into the system to accommodate him and ensure that the economy flows smoothly with his participation.

The money supply of a society in this proposal is determined only by the number of it's population, and their state of well being. The amount of money issued in the system should be such as to ensure that every person have at his disposal enough money to pay for basic living, educational and health services his entire life. Once a person works, he can earn and accumulate money to improve his standard of living and to be a more productive player in the economy of his society by contributing more to ensure that money flows smoothly thru the system.

Money is only issued into the system by people buying products and services. The flow of money from people that do not have any incomes is limited and guaranteed to pay for basic living, educational and health costs. These are the basic needs to ensure active participants in the system. When a person starts to work and income starts to flow in, he is permitted to issue more money into the system in order to improve his standard of living.

Saved money is limited to an amount that allows a person to pay for expensive products and services to improve his quality of life. Savings above the limit must be re-issued into the system as investment- by buying shares in other businesses, or by setting up a private business. Money is not allowed to be loaned at an interest. When a person dies, his account is destroyed. Inheritance is limited to material wealth.

Everyone is given an electronic device that acts like a decentralized bank. It couples the the biometrics of the people with their start up electronic money, ensuring that they issue legal money that can not be forged. Limiting accumulated money and having any limit over flows evenly distributed and redirected back to the ones who have lost it ensures a sustainable and vibrant economic growth for all.

Any comments from economists are welcome

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andrewvecsey
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