Excerpt from the book »
Gradido – Natural Economy of Life«
A story from the future
The visit
“Oh Pia, it’s nice that you’ve come to see your
grandmother.”
“Hallo Granny, look what I’ve bought! That’s
Joy, my new bio-robot from the Far East. They’re on special offer at the moment
at Alibi and only
cost 2,999
gradidos. Joy, come here! Joy to Pia!!! – Good!”
<!-- Joy is very good friend -->
“All right. – It’s still switched to English. –
Joy, speak German!!”
<!-- Joy sprechen Deutsch
-->
“Whoops, they’re still working on the
translation. – Where is Grandpa?”
“At senior citizens sport.”
“Oh, what’s he doing today?”
“Parachute jumping! He’s still fit as a fiddle.
No wonder with our healthy diet of spring water, organic fruit and vegetables,
wild plants and hardly any meat…”
“Do you know what we had in History today? The waste age! That was in your youth, wasn’t it?
Was everything really toxic waste? Your clothes, houses, computers, TV sets,
vehicles, fuel and tarmac? Our teacher said people even had to take toxic waste
when they were ill! Is that true, Granny?“
“Well, Pia, we called it medicine. But you’re
right. When we had medicine left over, we weren’t allowed to just throw it
away; we had to dispose of it as toxic waste, for the sake of the environment.”
“My bio-robot is 100% recyclable. Most of its
parts can be composted and the others will be recycled. It is driven by free
energy and is absolutely eco-friendly. Joy, show what you can do! Clean the
kitchen, Joy,!”
<!—Clean kitchen menu: dust, hoover or wash
up? -->
“Hoover.“
<!—Compost collected dust: yes/no? -->
“Yes.“
“Well, Pia, it’s just fantastic what technology
can do nowadays!“
“All that came through the Natural Economy of
Life. We owe it to this brilliant economic model that poverty was eradicated
and prosperity for all was created worldwide. And completely in harmony with
nature. NEL is my favourite subject at school.“
The natural law of growth
and decay
“Well, Pia, you must explain something to me. I
find everything wonderful – our active basic income that provides for everyone,
our health service, our generous national budget and the subsidies for the
environment. But one thing still puzzles me: how does the Natural Economy of
Life work? Where does the money come from when we don’t have any taxes or
levies?”
“Yes, Granny, that’s still strange for you,
isn’t it? After all, you went to school in the waste age, didn’t you? The
economy of that time ignored the most elementary natural laws like the cycle of
growth and decay. But decay is inevitable, as every child knows nowadays.
Because they ignored it, it surprised them in the form of inflation, monetary
crashes, wars and so on. Although you were still faring well in Europe, people
on other continents were starving. And you nearly destroyed the whole earth!“
“That’s right, Pia. You’ll reproach us with
that as long as we live. Fortunately the Natural Economy of Life spread like
wildfire over the internet and because of that there was a quantum leap in the
development of humanity. But how does it work exactly?”
“I’ll be pleased to explain that to you,
Granny. I have to make a presentation about it at school next week. The Natural
Economy of Life is based on the natural law of growth and decay. As you know,
we now have »living money« called gradidos. Our money is created through life
itself. And it decays, like all of nature’s products.”
“Money is created and decays?”
“Exactly! Society creates 3,000 gradidos for
each person per month. One gradido is equivalent to the former euro. The first
1,000 gradidos are intended for the active basic income that every person can
earn through unconditional participation. The second 1,000 gradidos go to the
government and the third 1,000 are for the Equalisation and Environment Fund,
the EEF.”
“The EEF does a lot of good for people and
nature.”
“Yes, the Equalisation and Environment Fund
serves to make good the damage to the environment that unfortunately still
exists today. So an extra pool of money of the same amount as the national
budget is available for the environment. Protection and decontamination of the
environment are the most lucrative branches of the economy.”
“So that’s the reason for the good development!
– Pia, you said our »living money« comes from life and society creates money
every month. How am I to understand that?”
“Depending of the form of government, the money
is created in the municipalities or a central bank. Every person has one
creation account and the amount is the same for everyone. Creation of money
starts at birth and ends with death so that the living money is created by
human life. All people and all nations have the same conditions.”
“So money is virtually created from nothing?
What is the money covered by?”
“By the most precious thing we have – human
life itself. Economically speaking, every person serves the community as a
worker and a customer. The community is all of us. Everyone can contribute to
the community through unconditional participation in a way consistent with
their inclinations and abilities, meaning in accordance with their nature.
Everybody can do what they love doing and they earn 20 gradidos an hour for it,
up to a maximum of 1,000 gradidos a month. Gradido means »thanks« and with the
1,000 gradidos we say to each person: “A thousand thanks for being with us!”
“But if money is created every month, it will
get more and more. Why don’t we have any inflation?”
“Inflation is enforced decay. Our decay operates
according to a schedule and roughly 5% of the balance is debited from each
account every month, making about 50% a year.”
“So after a year half of each gradido has gone
from my account, right?”
“That’s correct.”
“In return I get an active basic income of
1,000 gradidos a month? After all, I do a lot of work for the community, for
example in the Citizens Advice Bureau, looking after children, giving music
lessons…”
“Yes, exactly, Granny.”
“So everyone always has the same amount of
money at their disposal?”
“No, they don’t. Someone who works in addition
or does business earns extra tax-free income. Some people do without
unconditional participation because they earn more money in business. As you
know, there are millionaires but there isn’t any poverty anymore.”
Let’s see if it adds up!
“I’m not a mathematician or an economist, Pia.
Can you explain to me in a simple and plausible way how the whole thing works
on a big scale?”
“Gladly, but we will have to do a few
calculations. Today, like under the old system, we have some 80 million
inhabitants in Germany, a government budget of about a trillion gradidos or
euros respectively, including the health service, and a total amount of four or
five trillion gradidos or euros on all accounts. Are you following me, Granny?”
“Yes I still am, so far.“
“The money supply is constant because of the
interplay of money creation and decay. It evens out at the value where the
creation of 3,000 gradidos per citizen and 5% decay are in balance. That makes
60,000 gradidos per citizen since 5% of 60,000 is 3,000.”
“I see. Decay belongs to money creation and
that’s why the money supply stays constant and the value of money stable.
Everybody has their basic income, every country has a national income and the
environment is decontaminated. Is that right, Pia?”
“Exactly. The total money supply is more or
less the same as it used to be. In Germany, for example, it is 80 million
citizens times 60,000 gradidos, totalling 4.8 trillion gradidos. That’s why our
prices are so similar to what they were before.”
“And the state budget?”
“We have 12 months times 1,000 gradidos times
80 million citizens. That makes a state budget of 960 billion gradidos a year,
or a little less than one trillion. That has stayed the same as well. And in
addition we have the Equalisation and Environment Fund of the same amount.”
“Ah, that’s why there’s enough money for all
expenses, including the necessary decontamination of the environment and all
without taxes, insurances or other deductions. Fantastic!”
Unemployment? Provision
for old age? No problem!
“A lot of old problems have thus been solved:
unemployment, illegal work, pension problems… are all things of the past.
Everyone, from little children to the elderly, is provided for with the active
basic income. Anyone who works as well earns extra tax-free money. A lot of
people independently pursue their inclinations, for example art, crafts,
research and education or simply have time for each other. Everything is
possible without any problems. The working climate is excellent as nobody is
compelled to work. Employers and customers who place orders court their
employees and suppliers. Work is meaningful and enjoyable, or it doesn’t
happen. Illegal work doesn’t exist anymore by definition because there are no
taxes.”
“And the unpleasant jobs?”
“The hard, inhuman jobs have long since been
done by machines. – Oh, by the way, what about my little friend? – Everything
all right, Joy???”
<!— Kitchen hoovered. Dust put in compost
bin-->
“Super, Joy, you’re wonderful!”
<!-- Joy is very good friend -->
“Yes, that you are, Joy. – You see, more and
more work is being done by machines, Granny. The conditions of the other jobs
are so good that it’s always possible to find people who like doing them. More
dangerous jobs are very popular with adventurers as they are the best paid. By
the way, they are less dangerous than they used to be because all the safety
precautions are taken.”
The system regulates
itself.
“But there were still bottlenecks sometimes for
a short time. Food was in short supply during the changeover to organic farming
but that problem was soon solved.”
“That’s right, Granny. Food got more expensive
and the basic income was tight. A lot of
people looked for additional work. The EEF promoted organic farming and
offered courses in permaculture. Numerous families built a country house and
sold organic foods. So prices fell to a healthy level again.”
“Exactly. Today food costs a bit more than in
the waste age but, in return, it is organic and its quality is excellent.
Everybody can afford this good and healthy food.”
“The system regulates itself, as you see,
Granny: if goods become scarce, prices rise. As a consequence, people want to
work more. The best job offers are in connection with scarce goods, which now
have to be produced in bigger quantities. Then prices fall until the balance is
restored.”
“It’s plausible and amazingly simple.”
Both lenders and borrowers
win with loans.
“But tell me, Pia, your bio-robot was awfully
expensive, nearly 3,000 gradidos. How can you afford something like that?”
“ Joy is an investment. I bought it with a
loan.”
“You have got into debt, Pia???”
“No, I got a loan from my classmates to finance
the investment. We learnt how that works in NEL and, after all, I’m very
business-minded!”
“Just listen to my 13-year-old granddaughter!”
“Shall I explain my calculation to you,
Granny?”
“I see you’re absolutely dying to, so go
ahead.”
“You know I get a basic income of 1,000
gradidos a month and in return I have taken on some interesting tasks at
school. Among other things, I have organised a NEL study group and inform my
schoolmates. I give my parents 600 gradidos for rent and board, I need 200 for
current expenses and I have 200 left over.”
“And you could save them for the future.”
“Basically you’re right, Granny. Only you don’t
save for the future, you invest in it.”
“Well, what’s the difference?”
“If I tried to save money for the future, it
would soon be gone because of the decay. We can invest by giving or taking
loans. I decided to take a loan and buy the bio-robot. I take it to the
neighbours and help in their household for 20 gradidos an hour. In that way I
can soon repay the loan and after that the money will be my profit.”
“My little Pia has become a clever
businesswoman!”
“At the same time I’m investing in people since
Joy can do nearly everything on its own. I only have to train it. Then I can
talk to my neighbours or entertain their guests. Good neighbours become friends
who help each other privately and professionally. I call that neighbourly help
in the best sense!”
“I’m more and more amazed, Pia! – But what
about your classmates who lent you the money?”
“Both of them happened to have some money to
spare and offered to lend it to me. The two of them are really professional: by
giving frequent loans they preserve the value of their money and are already
accumulating a small fortune. I’m sure they’ll become bankers later.”
“Do they charge interest?”
“No! A lot of people want to preserve the value
of their money and that’s why they grant interest-free loans.”
“So the girls also benefit without charging
interest.“
“Yes, Granny. The Natural Economy of Life is a
plus-sum game with win-win situations everywhere.”
“Are all your schoolmates so good at doing
business?”
“Some of them have other interests like sport,
art, music, science, research, development, crafts... Every pupil is involved
in at least one project. They all win, as even if the project doesn’t bring in
any extra money, they are all provided for through their active basic income.
It’s just the same with adults as well.”
“I remember, Pia, we also financed our house
with an interest-free loan. A bank arranged it for us for a fee. Because we
were working and had tax-free earnings as well as our basic income, we were
able to repay the money in just a few years. In the waste age would have had to
pay it back our whole life long.”
Open source for all
“I can hear a flymo.”
“That must be Grandpa coming back from his parachute
jumping. Since these public flymobiles started parachuting has become a
national sport.”
“There he is. – Hallo, Grandpa!”
“Hallo, my sweetie! That was a wonderful day
outdoors in nature.”
“Just imagine, Sven, your granddaughter has
become a businesswoman. She has bought a bio-robot that has already hoovered
our kitchen.”
“That’s wonderful, Pia. Then I insist on
becoming your first regular customer.”
“You’re too late, Grandpa! The Meiers next door
are already my customers.”
“My word, you really are a good businesswoman!”
“Pia and Sven, I’m afraid I have to leave you
now because there’s going to be a LAN party in the Senior Citizens Centre.”
“Granny, do you still play with your old
computers that emit EMFs?”
“My dear Pia, we do in fact still have the old
nostalgic computers but we have linked them up to G-Com, which works without
any EMFs just like your bio-mobile phone and Grandpa’s bio-computer.”
“I’m proud of you, Granny. Have a good time and
see you again soon! – It’s amazing, Grandpa, that your old computers already
have G-Com.”
“G-Com – communication over the gravity wave –
has been known for a long time but the development of unconventional
technologies used to be slow and laborious. As you know, I myself am an
inventor and for a long time suffered from the patent law, which really
obstructs innovations. It was quite different with software, where open-source
software was often the best choice.”
“Exactly. With the introduction of the Natural
Economy of Life patent law was amended and the general open-source principle
was decided on. We learnt that in NEL.”
“Yes, Pia, all knowledge belongs to everyone.
Only in that way was humankind able to survive. The general open-source
principle wasn’t possible until the active basic income was introduced and
everyone could have a good life at last. Unconventional thinkers, researchers,
artists and craftsmen were also able to pursue their inner destiny. A quantum
leap in the development of humankind followed. Just think of the flymos –
flymobiles propelled by free energy and autopilot. They don’t need any roads,
parking spaces or petrol.”
“And they’re perfect for parachute jumping,
aren’t they, Grandpa?
“Yes, that they are, Pia!”
“Since the amendment of patent law there can be
no patent on life anymore.”
“That’s right, Pia. The spook of patented seeds
and dangerous genetic technology is a thing of the past, thank goodness. It was
only just in time as corn feed had been almost completely destroyed by genetic
modification.”
“Tell me, Grandpa, you used to work for the
Equalisation and Environment Fund and helped to organise a lot of things. Can
you help me with my presentation for school next week?”
“I’d be only too pleased to, my love.”
Equalisation between poor
and rich countries
“Besides decontaminating and preserving the
environment the EEF has other tasks, doesn’t it? Specifically, they are
equalising previously poor and rich countries and asset exchange.”
“Yes, it does, Pia. I was in the team that saw
through the equalisation of poor and rich countries. It wasn’t enough for all
countries to create their money themselves. First of all, food supplies had to
be assured for the population. We collected some facts and came to an
astonishing conclusion.”
“What kind of facts were they?”
“We examined people’s meat consumption and its
consequences. At that time 20% of the world population ate 80% of the total
meat production. The huge meat consumption in the industrialised nations was
the cause of considerable environmental damage. For a piece of meat 30 times
more natural resources were used than for vegetable food with the same
nutritional value. The largest number of diseases caused by diet were to be
found in the countries with the highest meat consumption.”
“Ah, I can already guess the result.”
“Our thinking was that people in the
industrialised nations would be healthier if they reduced their enormous meat
consumption. Environmental damage decreases and enough food can be grown for
everybody. It’s a great win-win situation for everyone.”
“For the meat industry as well?”
“Yes, indeed. We financed the changeover of the
food production businesses and farming. We created an advertising campaign with
the slogan »culinary – vegetarian – solidly united« with cookery books, gourmet
guides and much more. By the way, there were no problems with ethnic or
religious groups as vegetable food is allowed in all cultures.”
“But how were the poor countries able to catch
up economically?”
“It happened almost automatically; the
industrialised nations had a surplus of goods and were looking for new markets.
Because money is created every month the poor countries had enough money to buy
goods, technology and know-how and thus to gently align their development. Now
they produce what they need themselves. The economy cooled down, sparing the
environment.”
“But some companies had to close down,
Grandpa.”
“That happened in the waste age as well. But
now one thing is quite different: when companies close, nobody suffers from
poverty. Employees and employers have hardly any risk as everybody has their
basic income.”
“And incomes have equalised worldwide.”
“Exactly. After taxes were abolished labour
costs in the industrialised nations decreased. Wages in the other countries
caught up and so there are no low-wage countries anymore.”
“So there’s prosperity for all.”
Land and property
“Grandpa, you also drafted laws, for example
the environmental requirements for property.”
“That’s right, Pia. Land is not sold anymore
but leased over a long period because of the decay of money. This generates
continual income for the owner. But ownership of land is linked to stringent
environmental requirements. A person who lives on or farms their own or leased
land easily meets these requirements. But large estates that are not ecologically
farmed can quickly become a burden and are not worthwhile investments. So it
happens that many owners of large estates give their land back to the community
which then takes care of renaturalising it.”
