Are you bothered by the prospect of aging
Contents of issue 234
Seminar for liberal order
Questions of freedom
Issue 234, June 1995
ISSN 0015-928 X
Page 3 - 18
Why should money age?
How money affects the economy cycle (1)
The money is always there. We all deal with it. What do we actually use when we buy or sell goods, grant or take credit for investments and donate something or receive gifts to finance culture? We think we know the money because we deal with it all the time - but do we really know it?
Does money serve our economic will or does it influence our economic will? the money is neutral, is taught. I mean to say that it is by its properties has no influence at all on the processes in an economy based on the division of labor, in which people agree on their economic interests through free agreements; That would mean that the economist need not distinguish between monetary and economic considerations. But this confuses ideal and reality. Our money today is not neutral, because it changes our natural economic interests quite considerably. And that influences our will and changes our actions.
In order to understand this and to be able to judge proposals for changing the monetary system, one only has to learn to observe your own handling of money and to learn anew from historical phenomena - such as the galloping inflation of 1923 - which one knows almost as well as one's own handling of money, because they have been well described in many ways.
Our money is a creation of national - in future European law and at the same time an economic phenomenon. It has both legally and economically developed historically and is still a long way from reaching the end of its development. But that can only be written by those who can imagine a different monetary system than the one we have today. We have the "eternal penny", but we need "aging money". Why did Silvio Gesell and Rudolf Steiner think that money should "age"?
Attention! There is a great controversy about this, which is not to be traced here. There is only one way out of this maze of opinions if you observe social phenomena yourself and think about them yourself. Anyone who treads this path will increasingly recognize which observations of social reality have led both Gesell and Steiner to their strikingly plastic formulations. These lines are intended to provide suggestions for such observations. A textbook would be required for a systematic introduction. How interesting and worthwhile it is to deal with money will become clear here as well.
A magic triangle
Advice on observation and thought exercises
A quick look at the generally accepted functions of money, viz Medium of exchange, value meter and Store of value to be gives a clear sense of the historical conditionality of our monetary system today.
In the course of this century great steps in development were made, in particular the complete one solution of national money of gold completed. Gold no longer serves as a medium of exchange or a measure of value; as far as it is used to store economic values, this is usually done in the form of bullion gold. Gold coins are no longer used as a medium of exchange for goods, but only as Treasure funds used for safekeeping. Their value fluctuates, like that of bullion gold, i.e. with the gold price, which is determined by supply and demand - as with any other Would also.
The solution of money from gold is a great intellectual achievement of modern mankind. You used to have the Dematerialization of money cannot be imagined. Today it will be entirely his Functions understood out. However, these functions are not yet adequately perceived in their interdependence.
We learn a great deal about money when we first look at each of its functions in isolation in all perfection and wonder what happens in the economy if one of these functions of money fails. These are good observation and thought exercises that do that Seminar for Liberal Order e. V. regularly offered in an elementary seminar on monetary matters (see the conference program “Elementary Seminar”).
As a further step in social science work, the question of how the functions of money influence one another in terms of their effectiveness can be based on these preliminary exercises: which ones support one another and which ones disturb one another?
Standard of value
Medium of exchange, custody of value
The money in the cycle of the economy
Money as a perfect medium of exchange
The money as a perfect measure of value
The money as a perfect store of value
What we must fear
- when money fails as a medium of exchange
- when money fails as a measure of value
- when the money fails to store the value
What conflicts are there between money as
- Medium of exchange and standard of value?
- Medium of exchange and safekeeping?
- Standard of value and storage of value?
Master the magic triangle
- with inflationary equilibrium
- by aging of money
One then discovers one magical Triangle: in theirs perfection thought to represent the three functions of money in each other's way and thereby produce the well-known crises in the economic cycle. Suddenly it also becomes clear why we do not experience a stable monetary value over a long period of time, but always fluctuating Inflation rates. The three functions of money only get along if we deliberately limit one or the other of them in their perfection. This will be shown in the following as an example.
The flow of money carries the flow of goods (2)
The goods flow from the producer to the consumer via trade. The money flows towards the flow of goods: from Consumers on the trade to the Producers. The money forms a closed one Circularon, because it flows back to consumers as income from an activity in trade or production, as income from interest or land rents or as income from state-organized redistribution. For our consideration, this cycle as a whole is not in the foreground. We just want to look at that Points of encounters of money and goods. At these points in the money cycle, we can observe phenomena that actually everyone is familiar with, and if we take a closer look, we can gain significant economic insights.
Depending on which of these two currents is currently stronger, there is a Money overhang or a Goods overhang. One then speaks of the seller's market or the buyer's market and means the more powerful market partner in each case.
The seller's market
If all goods - no matter how bad the quality - are torn out of the hands of the sellers, then they determine which customer receives goods and which on his as worthless than the goods respectable money remains in place. The seller no longer has to sell, but only has to distribute, even distribute like a shortage management authority. Part of the flow of money looking for goods remains unsuccessfully in people's pockets or accounts.
The market seeks compensation through price increases - through Inflation. If these compensatory price increases are prevented by the state through a so-called price freeze, then one speaks of "backed-up inflation". The money wants to flow, but cannot because the flow of goods is too weak. The state-regulated prices do not cover all costs. That is why the producers appear and merchants make the goods more valuable than the money, if they are still being manufactured.As far as they can with the risk of government penalties, the merchants and producers withhold their goods - for good friends, for good relations, the In order to access scarce goods yourself as a consumer or processor, you need goods for goods for the black market and finally for very common barter transactions, as in the economic Stone Age.Until a few years ago, this was the general everyday experience of men and women in Eastern Europe Everyone who had to queue for goods.
The buyer's market
In the buyer's market, the customer is king. Here the seller has to work behind his counter queuing for money. The flow of goods accumulates in the shop windows and on the sales counters of the "Polish markets". The huge range of goods simulates prosperity - even where, as after the upheaval in Eastern Europe, production collapses and unemployment rages: the shop windows and counters are packed. The flow of money is too weak to absorb everything that has been produced, there is no lack of demand from consumers, but they do not hold up enough Demand. If they have any money at all, give it up only hesitantly out. The money doesn't really want to flow; the money holder can wait. The Would but must be discontinued quickly because they ages and their storage is usually associated with losses and always with costs.
If the flow of money is too weak, it has to Production throttled become. The individual producer can help himself by increasing quality and lowering prices, as long as he is able to fight for leeway through rationalization or lower wages. The competition between producers and dealers is therefore tougher and more ruthless. More and more of them are leaving the market entirely; That means, however, that they and their previous employees no longer earn any income, so they cannot buy anything or only a little that can be afforded with unemployment or social assistance.
When the market seeks to balance the weak demand and the pressing supply with a tendency to lower prices, everyone becomes income earners even more hesitant when it comes to spending money. If they can wait any longer, they wait with their consumption, because tomorrow or the day after tomorrow they want to enjoy lower prices. Demand that has only been postponed for a while causes stocks to swell and leads to production restrictions and further declining incomes, further declining demand and further declining prices with even greater delays in spending by those who still have money.
They fear that due to the general weakness of the economy they will soon lose their income in whole or in part and therefore form a "cautionary fund", i.e. they save an additional part of their income additional savings do not go into long-term, job-creating investments because they are not available to the capital market in the long term, but rather are only given out in the form of an emergency fund for a short period of time. Investors will remain inactive even with abundant capital supplies as long as they do not expect demand for goods to rise.
The money-owning customer is not only king when prices are falling. With stable prices there is still a buyer's market, because the goods are under supply pressure - but not the money. King customer enjoys his role, regardless of whether he has a lot or little money in his pocket. Everyone is a consumer and everyone appreciates being king as a customer, being able to choose from an oversupply and being served with servility by the seller. Who thinks that the consequences of this "superiority of our money over the goods" (Steiner) a constant backlog of the flow of goods, the underutilization of production capacities, the stubborn unemployment and constant profit and wage pressure.
We are all spoiled customers who only occasionally have very slight scruples when we perceive the submissiveness with which many salespeople treat us. Centuries of dealing with money, which is almost always superior, has both sides, the buyers and the sellers, that Sense of true reciprocity in exchange of money and goods clouded. Only when we consciously direct our gaze to historically also observable strong imbalances, full of pronounced inflations and deflations, and compare them precisely, do we become aware of the small injustice of stable money, which quietly affects every single sales negotiation. It is only possible for those who take even small injustices very seriously to measure their far-reaching economic effects when they realize that they have to add up and are not offset by anything.
Where is the zone of equilibrium?
The buyer's market is as much a phenomenon of economic imbalance as the seller's market. However, there must be a zone of economic equilibrium - a transition area - between the two. We have already worked out that there is a buyer's market not only when prices are falling, but also when prices are stable. The Transition area betweenWe therefore have to operate between buyers and sellers in the area of inflation rates search. We don't find it at very slight rates of price increase, but only when holding money as well loss-making is like holding goods.
To do this, inflation rates must be at least three, if not five, and even more percent in economic systems with major restructuring problems and correspondingly high risks. Whether in our fully developed western market economy three percent inflation is sufficient or four or five percent inflation is required to achieve the Overcome buyer's market, is probably only possible to find out through a long-term attempt by the Bundesbank. We also have to do this first Gain experience, how broad the transition area of true reciprocity - expressed in constant, consciously experienced - inflation rates - really is between the buyer's and seller's market. A seller's market probably only arises when inflation rates exceed 10%.
From the perpetual penny to aging money
It also works without inflation if the "aging of money" (Steiner) is brought about using a different technique Value meter start, this can also be done with the function of the Store of value to do. Our previous money contains the promise to be a perfect store of value: for all eternity, every single coin should retain the value that was once impressed on the coin or once printed on the banknote. The Bundesbank is still redeeming invalid banknotes from the entire post-war period, which from a legal point of view have long ceased to be money, at face value in today's money. She even explains this publicly, yes in paid advertisements! She does this without any time reservation. This is an official promise of the eternity of the issued money tokens, on which savers who do not entrust their money to the banks, will be able to rely for a long time to come. This promise that it will not age makes our money today vastly superior to any commodity.
In the Middle Ages a monetary system was widespread in Central Europe Bracteates know. They consisted of thin silver sheet that was only embossed on one side. The most important thing from an economic point of view was that these coins were frequently minted. On this occasion was a Impact phrase, a fee, charged. These coins were not suitable for permanent storage of value, but they served well as a means of exchange and payment because they were not superior to the goods, but were also subject to an aging process. To store economic values one had to lend one's money. Everyone always tried to get by with as little cash as possible, because it was not known beforehand when the minter would announce a chargeable change of coinage. It was inevitable that some minters did the Revocation of coins abused as a convenient source of control. Instead of fighting the abuse, the citizens demanded that perpetual penny and then got it too. With the abuse, the economic blessing of the bracteates, about which our economics hardly knows anything to this day, was abolished.
You can also let the individual banknotes age, i. H. subject to a slight loss of value and thus give the flow of money the same gradient as the flow of goods. Various techniques are conceivable for this, but all of them require changes in the law, i.e. democratic majorities and thus new insights in broad sections of the population. The central bank can take the path of stabilizing inflation rates without having to wait for laws to be changed. The Bundesbank must, however, first reap the benefits of one aging money learn to appreciate.She still thinks that it is possible to achieve monetary stability with the "perpetual penny", that is, without aging money. But it is an illusion to see the eternity of the individual money symbol as a prerequisite for a stable currency; in truth, the eternity of the money symbol is the real obstacle Currency stability, because money tokens, which seem to be perfect stores of value, do not form a steady flow of money, they have one fluctuating speed of rotation and therefore permanently disrupt the monetary stability-oriented monetary policy of the Bundesbank. Just one stable The speed of circulation of the monetary signs enables the central bank to achieve monetary stability with the help of monetary policy. It is therefore necessary to age the tokens moderately in a skilful manner.
Different techniques of aging money
One form of aging would be money tokens that lose 0.1% of their value from week to week; there would already be one on them table printed, which shows that the note is worth 100 DM on the day of issue, e.g. on 1.1.1995, on December 31, 1995, i.e. after 52 weeks, but only has a value of 94.80 DM A buyer's premium of DM 5.20 would have to be paid when paying. Accordingly, the table would show interim values that increase by DM 0.10 per week.
For the business of daily life one would prefer "young money" as "purchase money" in order to avoid the inconvenience of the additional payments. Savings can be entrusted to the bank as "loan money" even in older money, because it can easily calculate the loss that has already occurred and only makes a credit; and money that has become really old still finds grateful buyers as "gift money".
But other techniques are also conceivable that could be more convenient for everyone: The Bundesbank is already allowed to declare issued banknotes invalid and to issue newly designed banknotes for them. If the legislature would allow it to levy exchange fees (surcharges) on these occasions, which are measured in such a way that the private cash-keeping of consumers, dealers, producers and banks is burdened with an average of 5% annually, everyone would avoid unnecessary cash keeping, i.e. he would soon spend all income again or make it available to the capital market in the long term. This may include the Bundesbank determining the date of the exchange and the bill to be called by drawing lots. The draw could be weekly z. B. after the Wednesday lottery - take place and would usually lead to the result that none of the tickets in circulation is called. The exchange fee could also change in amount, because the average burden on the cash balance is only 5%. Then all tickets retain their full value until the day of the drawing. One this easy way Aging money forms a steady stream of money.
A buyer's market cannot arise even if the monetary value is stable if the Money sign in On average, age as much as the goods age on average. 5% annual fees on the money tokens, i.e. on the cash, are much more bearable for everyone than the calculation difficulties caused by 5% steady inflation. Anyone who carries an average of DM 1,000 cash with them over the course of the year - most of us normal consumers probably get by with significantly less - should expect annual fees of DM 50. Who would not like to pay this as a price for the permanent stability of monetary value?
The flow behavior of money and goods
The rate of inflation or the rate of aging of money decides whether the flow of money only partially or completely absorbs the flow of goods. We saw that im Sellers market everyone goods offered at all are immediately absorbed by the flow of money, only in Buyer's market The goods accumulate and production stalls because the flow of money is held back. Succeeds the To stabilize the flow of money, then the flow of goods can develop to the limit of full employment. The economic equilibrium between the flow of money and the flow of goods shows itself in their constant flow with the same flow quantities. They flow towards each other with equal force. No one has to stand in line on either side of the counter - neither for goods nor for money. Buyers and sellers then face each other with equal power, or better said: powerlessly. There is neither a buyer nor a seller, but a really balanced market of reciprocity (brotherhood between buyer and seller) with employment for all who can and want to provide a service that is useful for others. The high standard in the term Social market economy is only fulfilled if the superiority of money over the commodity is renounced and thereby the Exchange justice between money and goods is permanently established.
Current and countercurrent must correspond exactly to one another in terms of volume and speed. The central bank has to calculate the money supply according to the production potential, i. H. measured according to the possible production volume of the national economy, so that all production factors can produce at full capacity without stagnating sales. That’s what she’s trying to do. The Quantity equilibrium on its own, however, is not sufficient because it relies on the Flow behavior of money and goods arrives.
Sacrifice out of insight
We have observed that in the seller's market goods and in the buyer's market money tend to be withheld, i.e. not flow evenly enough. If we want the economy to remain fully employed, we have to patiently and without prejudice to seek the transition zone between the buyer's and seller's market. And when we have found them, we have to point the central bank on the right course. She'll wait and see if we can as consumers agree to forego the superiority of the money it has spent over the goods, so that we can as an entrepreneur and employee be able to take advantage of the opportunities for permanent full employment. Only the dissemination of better insight can establish the willingness in our fellow citizens to sacrifice the seductive superiority of money. Only this sacrifice will pave the way to full employment. Because only one from the central bank systematically steady flow of money carries a steady flow of goods.
Money capital and physical capital
About the connection between saving and investing
Ever since John Maynard Keynes published his famous book General Theory of Employment, Interest and Money in 1936, we have known that there are great disruptions in the economic process when savings are not invested By saving, therefore, the economic cycle from the production of goods via income generation to the demand for goods is interrupted, unless the savings are immediately reinvested in physical capital, i.e. in houses and machines The volume of savings and the demand for capital goods must therefore correspond to one another; then, in accordance with an increase in savings, capital goods are produced instead of consumer goods; the economic cycle is preserved :
If that S.par volume fully converted into real capital in a timely manner,
so to I.investment is
if soS. = I.then saving does not affect full employment.
As a rule, the savers do not invest themselves. The prerequisite for the investment is therefore that they lend the money saved to entrepreneurs willing to invest. This is usually too risky for them; they prefer to give their savings, their money capital, to a bank. This is also one Loan process, because the bank is obliged to repay the capital received to the saver on the agreed date. The prerequisite for investing the savings in real capital is therefore a further loan process, namely a loan from the bank to an entrepreneur. This will not be lacking, because the banks can only cover their costs, including their interest payments to savers, if they can earn interest by lending to entrepreneurs. You live on that Interest margin between the deposit rates that savers get from them and the lending rates they get from investors. Usually, the longer the terms of the loans granted by savers and banks, the higher the interest paid on both sides.
The tendency towards liquidity and the interest rate structure
Nevertheless, savers like to indulge their "tendency to liquidity" (Keynes), ie they hesitate to lend their savings long-term. They prefer short-term investments that allow them to dispose of their assets at any time or soon Liquidity through proportionate high interest rates on long-term loans overcome. After a period of good income and prosperity development, however, a steadily increasing volume of savings will have a significant impact on the level of long-term interest rates if the central bank does not previously drive up short-term interest rates out of concern about "overheating" the economy and thus the long-term capital investment for saver and Makes banks relatively unattractive.
When asked what prompts savers to lend their savings as long as they can really do without them, then two things come into view:
1. The prospect of higher Profit through higher interest rates.
2. The concern before Losses by expected inflation rates.
In modern economics, the changes in the so-called Interest structure, i.e. the gap between short-term and long-term interest rates. Usually long-term rates are higher than short-term rates. But there are also times when short-term interest rates approach the long-term or even rise significantly above the level of long-term interest rates. If the Bundesbank has such a " inverse "interest rate structure sustained for a longer period of time, the long-term reinvestment of the savings does not take place; they are held in time accounts. Savers and banks can and do indulge in liquidity to a large extent.
When the capital is no longer available for long-term investments, in the so to speak Investment strike occurs, then the demand for capital goods collapses significantly; there are layoffs in the capital goods industry; the reduced incomes of employees are reflected in falling consumer demand; the private demand falls overall and as a result the total supply and the number of jobs continues to shrink. Such a cumulative process is difficult to stop economically.
Keynes recommended when declining more private Demand for consumer and capital goods the Government demand to keep the economic cycle going. However, the state can no longer make use of this remedy since it has borne itself right up to its neck. Keynes' therapy is therefore useless today; his diagnosis of the causes of the economic crises remains correct.
The motives of savers
The central banks should refrain from creating inverse interest rate structures and devise ways and means to induce savers to do theirs To overcome the tendency to liquidity, i.e. to invest their savings as long as they can possibly do without. A Policy of steady inflation rates is a very suitable means of doing this because short-term interest rates are being eaten up by inflation rates; only long-term interest rates offer the chance of fully compensating for inflation rates. The formation of savings will not suffer from the fact that the inflation rates completely or partially eat up the interest, because the Saving motives of the masses do not limit yourself to generating interest income. The formation of savings is absolutely indispensable for each individual and for each family in order to cover life risks and to save on major purchases.
The motive for saving to achieve high interest income is only relevant for very large assets, but their further growth distribution policy is quite undesirable. It is also superfluous if, in a fully employed economy, it is possible for broad sections of the population to save as much as they would like to save. In order to cover the capital requirements of the economy we are then no longer dependent on the fact that increase the great fortunes by compound interest effects. In a fully employed economy, sufficient capital is formed by the broad masses; and a plentiful supply of capital will push the interest rate down as a whole, so that many investments can be financed which appear unprofitable when the interest rate is high. As is well known, this applies in particular to very interest-sensitive residential construction.
Overcoming the tendency to liquidity
According to Keynes 'analysis, business cycles are based precisely on the fact that, after years of good business activity, interest rates fall as a result of an abundant supply of capital and can then no longer overcome the savers' tendency to liquidity on their own. In this situation you can Inflation expectations especially important because they also help to overcome the tendency towards liquidity and thereby keep long-term lending and investment going. This is true even when short-term interest rates are much lower than inflation rates so that savers are already suffering real losses on their cash. For this reason alone, they will channel every expendable mark into long-term forms of investment in order to at least compensate for losses, that is, to maintain the value of their savings.
Today there is no longer any argument in economics about the fact that Inflation expectations are driving interest rates higher. A general distinction is made between Nominal and real interest rates and knows that inflation will not result in injustices if all parties involved correctly anticipate its level and therefore take it into account when concluding their contracts. Harmful and unjust are only unpredictable fluctuating Inflation rates. It is still too little seen that the stable inflation expectations, which are unproblematic from the point of view of justice, also limit the dangerous tendency towards liquidity. They ensure that all savings are borrowed and invested as long as possible. This advantage should get around and be used for economic policy.
That too aging money overcomes the tendency of savers to be liquid. It does not prevent them from saving, only from keeping cash. They have to lend their savings and endure negative interest rates if their money is only available to the banks for a short period of time. With long-term loans, however, they have the prospect of getting their savings back undiminished by negative interest rates and, above all, without any loss of inflation. The investing companies will have to bear the interest margin of the banks in the form of low lending rates. Compared to the policy of steady inflation rates, aging money has the advantage that the Bundesbank can keep the monetary value stable. This makes long-term calculations much easier for savers and investors.
Buy - lend - give
In addition to the effects of steady inflation rates or aging money signs described above, namely overcoming the superiority of money over goods and overcoming the tendency towards liquidity, there are other effects. Both instruments keep the economic cycle and thus uninterrupted permanent employment and an increase in prosperity going; Therefore, through continuously increasing savings, they gradually lead to a decrease in interest rates until the short-term "investments" have negative and the long-term "investments" no longer have any appreciable interest. When capital ceases to be scarce, not only does interest become almost insignificant as a problem of income distribution, but the power of capital over labor is also broken. The free economy will no longer be capitalist. The interest only applies to the allocation of the capital, i. H. serve the steering in its most sensible use. This does not require a specific interest rate level, just a normal interest rate structure. Before capitalism can be overcome, the land question must be resolved. The capital market is a bottomless pit if you can invest capital in the ground. As long as the landowners keep the land rents private, investors will buy land, or more precisely: they will exchange capital for land when interest rates fall on the capital market or land rents rise due to increasing land scarcity.The lower the interest on capital, the higher the land prices, because they are primarily based on the capitalization of land rents. The escape route from the capital market can be denied to savers by a route control of the land rents. Land prices will then drop to zero because only land users, but no longer pure investors, will have an interest in land ownership when the land rent has to be paid - regardless of whether it was earned on the individual property or not. No plot of land will go unused, and it will no longer be a capital good.
This tax reform must come because without it the land will become economically unsaleable when the interest on capital falls; The earnings values, i.e. the capital values of all properties, approach infinity when the interest on capital approaches zero. The floor is then the only thing pension-bearing Good and is then only inherited. By overcoming capitalism, society would fall back into feudalism. The increasing immobility of the land market would be completely incompatible with the flexibility requirements of a modern world economy based on the division of labor. The gentle death of the pensioner, which Keynes thought possible because he envisaged the possibility of gradually falling interest on capital, must therefore go through one step by step Land tax reform also be initiated in good time for the land pensioner. With the disappearance of capital and land rents, the private income and wealth distribution much more evenly become.
Gift money and the future of work
When capital can no longer "pile up" in the ground (Steiner), the capital market will no longer be a bottomless pit Separation of the capital market from the land market With ever increasing savings, interest rates will fall faster than we can imagine based on our previous economic experience. The emerging Abundance of capital will bring the capital market barrel to overflow and flow on as donation money. Because those who have saved enough to cover their personal life risks and those of their family will either reduce their income by working less or give away the part of the income that has not been consumed. Not only the consumption of the individual is limited by himself at some point through fixed habits, also his saving, if it no longer brings compound interest. This will really only be the case when the economy's capital needs are met; as long as it is not covered, positive interest sucks all income surpluses into the capital sphere.
So there can only be a large amount of "gift money" once the capital requirements of the economy have been met, which can be seen from the drop in long-term interest rates to the range of zero percent for secure long-term capital investments.
Limiting consumption is a prerequisite for saving; Limiting savings is a prerequisite for giving.
The liberal Funding the culture through personal Donations from many citizens will only develop when the capitalist interest economy is overcome by steady inflation rates or some form of aging of money. As the volume of donations increases, more and more people will find employment in institutions for cultural life and care for others. The economy then no longer needs to grow in order to guarantee full employment, because outside of the economy new occupational fields will develop as strongly as an increasing flow of donations allows. It is high time to initiate these processes!
The economic and technical progress in productivity will continue to release more and more people from economic activity for cultural and social activities. Today the exempted land in the Unemployment, because the state, which has reached the limits of its financial possibilities, can no longer accept them in the fields of justifiably unlimited needs - in schools and universities, in the liberal arts and social services - by providing additional jobs. These areas will only be able to grow independently of the state subsidy drip. The flows of income generation and use by private individuals must be fundamentally changed if the constantly increasing prosperity of our modern economy is not to lead into intolerable social dead ends. Buying and lending belong to the economic cycle and giving. All three forms of income and money use belong together for the circular analysis.
There is still a long way to go from the dead ends of our monetary and land order to a positive economic future. The Eternal penny prevents the trouble-free development of the goods economy on the consumer and investment markets. Only an aging money is economically neutral and ends the ominous compound interest spiral by transferring the economic growth forces to cultural financing. - Many thinking habits have to be sacrificed. But the knowledge that economics has gained in the course of this century after, but independently of Silvio Gesell's and Rudolf Steiner's pointers, makes it much easier to understand what they wanted to point out. It is worth studying both at the same time. But the best teacher is the repeated, unprejudiced observation of economic phenomena and calm reflection.
(1) This is a revised and expanded version of the article "Why should money age?", Which appeared in June 1994 in the magazine "info 3".
(2) The attentive reader of this journal will not miss the fact that this chapter appeared three years ago in issue 216 as an independent article with the same title. The text has been revised again and incorporated into the larger context of this article. - The author.
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