Freiwirtschaft

Freiwirtschaft (German for free economy) is an economic idea founded by Silvio Gesell in 1916. He called it Natürliche Wirtschaftsordnung (natural economic order). His Idea has not been put into practice by any state since then.

Related Topics:
German - Idea - Silvio Gesell - 1916

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Main differences to current economic systems:

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• Freigeld (free money)
• All money is issued for a limited period by constant value (neither inflation, nor deflation).
• Long-time saving requires investment in bonds or stocks.
• Freiland (free land)
• All land is owned by public institutions and can only be rented, not purchased (see also Henry George).

The (proposed) results include:

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• More private spending for consumption and investment
• Consumers invest surplus money in expanding companies
• Full employment: Work for everyone who can work
• Rate of economic growth can be set by the society
• Interest rates drop to almost zero percent in the long run
• Freiland prevents high real estate prices
• Tremendous social disparities will cease
• Less working hours per week for everyone in the long run

There seems to be an attempt to realize Freiwirtschaft in a small area in Canada, based on artificial money called Gogo that loses its value after one year.

Related Topics:
Canada - Gogo

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Freiwirtschaft: Flaws of the money system ►