Happier and healthier
Without the pressure to make money at any cost, we will live healthier, fuller and more balanced lives – for less money! Not only will the playing field of our economy be level, it will be in excellent condition and support innovation and prosperity. Everything will cost less, debt will diminish, and taxes can be lower. This is a profound change.
More choice and lower prices
Remove the pile up of interest and speculation on the cost of everything you buy, and prices go down significantly. It costs less to live well. The price of everything more closely represents its own full cost; there are no hidden costs for money siphoned off by the financial sector. You are in a better position to make decisions about what you value and how much it’s worth to you.
Our new common wealth money is issued as equity. We will no longer need to continuously expand the supply of borrowers and debt. Debt will be from someone’s savings loaned to someone else as an investment.
Debt will decrease. With lower prices and lower taxes and higher incomes, we can pay off as much of our debt as suits us. Debt can be a tool for investing in the future, instead of a lifetime treadmill.
Will there be enough credit?
Some people fear there will not be enough credit available when we change to a common wealth money system. However, in a stable and sustainable economy, there will always be savers who want to invest, providing credit for others. Coupled with individual savings, the recycling of loan repayments in a commonwealth money system will be sufficient to fund business lending and a non-inflationary level of mortgage and consumer lending.
As the government ceases to be the biggest borrower in the nation, this too frees enormous sums for others on Main Street to borrow.
Most bank lending in today’s system goes to property speculation and Wall Street gaming; it is neither the largest nor most significant source of credit for Main Street businesses. So, requiring banks to lend only existing money will not cramp businesses’ ability to get credit. Evidence shows what businesses really needs is not credit, but more customers spending on their products. This will happen in a commonwealth money system (if the product is worthy and the price is right).
PositiveMoney.org gathered economic research on this issue and published a short and convincing paper, Would There be Enough Credit in a Sovereign Money System, by Frank VanLerven, Graham Hodgson, and Ben Dyson. (They are using the name sovereign to mean what I have called commonwealth money). They make a convincing case that a commonwealth money system will provide an adequate (but not inflationary) level of credit.3
Government will cost less
Government will require fewer taxes to support the maintenance of our common wealth at the current level. Government will have no debt and will not be paying interest. And we will save money because we will stop blowing it away on black hole military adventures at the behest of the money powers.
The seigniorage on our money will go to our government instead of to the private banks. We can invest in our people and in our infrastructure. We can have a healthier population, safe and inspiring schools, a swift and equitable justice system, 21st century transportation and communication networks, renewable energy, clean air and waters, a healthy pollinator population and a toxin-free food supply. …
We can live long and prosper. Let’s do it!