Advantage 36 – Demographic change? No problem!

Excerpt from the book »Gradido – Natural Economy of Life«

»The inter-generational contract has been terminated demographically.«

– Kurt Biedenkopf, CDU [Christian Democratic Union]

Prime Minister of Saxony, 1996

People like to depict the so-called demographic change as a bogey. What does demographic change actually mean? On the one hand, the birth rate is falling in the wealthy countries and the younger generation is smaller. On the other hand, life expectation is increasing and people are getting older and older statistically. 

In the old system this means that the so-called »inter-generational contract« no longer works because fewer and fewer young people have to provide financial support for more and more old people. Here the emphasis lies on the word »financial«, for there is enough food for everybody. The politicians are trying to defuse this problem by raising the retirement age. This is a questionable approach when you think that we have unemployment On the other hand, we cannot make the politicians reproaches as the problem results from the system and therefore cannot be solved in the old system.

In the Natural Economy of Life old people contribute to creation of money like all other people. In addition, they also have the right to unconditional participation and hence an active basic income. 

Advantage 37 – Old people are welcome

Excerpt from the book »Gradido – Natural Economy of Life«

»Old people are not all the same, probably even less than any other age group: for their long lives have made them into individuals. One of our current problems is that society refuses to understand that and treats all old people  'equally'.«

– Lily Pincus:

The Challenge of a Long Life

Unfortunately elderly people are often perceived as a burden. They no longer perform as well as young people and when they reach retirement age, society has to provide for them. If they become frail and ill, they are all too often shunted off to old people’s homes, which, in turn, cost a lot of money.

And, once again, things are quite different in the Natural Economy of Life. As old people contribute to creation of money and thus help to finance both the national income and the Equalisation and Environment Fund, they are welcome alone from a financial standpoint. In addition, they are lucrative customers for the business sector and thus welcome there as well, which constitutes the financial aspect.

The community can also greatly benefit from old people’s experience and wisdom, particularly from a human point of view. What a blessing it is for a family when the grandparents are still alive. Children adore their grandparents: they are more serene and indulgent, more generous and always ready to help – be it only with good words. This does not make them better than their biological parents, whose strictness is important for the children’s upbringing, but they are a great enrichment for everyone. A visit to their grandparents is like a holiday for many children.

What applies for the family applies even more for the larger community: old people enrich life in many respects. If they receive an active basic income, thus enjoying the right to unconditional participation, they also have social commitments, which give them the certainty of being needed. In this way they contribute actively to the common good. That keeps them young and fresh, they stay healthy longer and can therefore serve the community longer so that everybody concerned benefits.

Advantage 38 – Sure provision for old age

Excerpt from the book »Gradido – Natural Economy of Life«

»This sentence is true – and let me spell it out to you:  your pension is safe.«

– Norbert Blüm, CDU [Christian Democratic Union]

German Minister for Employment and Social Welfare, 1994

It has been clear for a long time that the statutory provision for old age is no longer sufficient. The state pension scheme may possibly collapse completely – even though people have paid contributions to it their whole life long. The »inter-generational contract« ceased to function a long time ago. This problem is a result of the system and cannot be solved in the old system.

In the Natural Economy of Life pension provision is assured through the basic income alone. Creation of money takes place in the here and now. We do not need an inter-generational contract, for old people contribute just as much to the good of all as everybody else.

It is also to be expected that people will be more healthy than today on account of the more favourable living conditions. Many people will still be fit and spry at an advanced age and enjoy taking on tasks. The strength of the active basic income is also shown here: while today a lot of people fall ill shortly after retirement because they no longer feel needed, unconditional participation guarantees everybody the right to contribute to the community in accordance with their inclinations and abilities. There cannot be a better health provision for elderly people than this.

So people will remain active in accordance with their inclinations and abilities up to an advanced age. Their basic income is only the foundation that assures their existence. Like everyone else they can also use their diverse skills to earn extra money – naturally tax-free!

If the money is not enough, some people may have granted interest-free loans in their young years which will provide additional income. 

Advantage 39 – No overpopulation problem

Excerpt from the book »Gradido – Natural Economy of Life«

»Nativity varies and it is a well known fact that people tend to produce more offspring during war and poverty. Some, more well off, European countries are suffering from declining populations, bringing a threat to pension schemes, for example.«

– Einar Du Rietz

journalist and communications consultant

Here we come to a curious phenomenon: rich countries complain about the so-called demographic change or fall in the birth rate and poor countries about overpopulation. Apart from the fact that an outside observer might get the idea that we humans complain about everything, one perhaps not so obvious advantage of the Natural Economy of Life can be seen here.

If the birth rate in rich countries is falling while poor countries are inundated with new-borns, a monetary and economic system that results in worldwide prosperity should lead to a fall in the birth rate as well. This fall in the birth rate would be completely voluntary. No measures are necessary such as are currently in force in China, where (with some exceptions) a family is only permitted to have one child.

Isn’t it wonderful when problems are solved by themselves and completely voluntarily? Alone this one advantage that the overpopulation problem is solved by itself in an agreeable and voluntary manner should be sufficient reason for introducing the Natural Economy of Life.