Advantage 9 – Stable prices

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

»Every problem you master helps you on in future – and gives you fresh strength.«

– Steffi Graf

German tennis player

With a stable per-capita money supply it can be assumed that prices will level off at a stable level. As the gradido money supply is equivalent to the current money supply in Central Europe, the price level will balance out on a comparable level. The prices in the various product groups may shift in relation to other product groups as there are new parameters that influence prices.

Because money is perishable people may want to spend it sooner, which would make prices rise. On the other hand, interest, taxes and other levies, which today account for more than half of the end consumer prices, no longer exist and this makes prices fall. Overall, the two opposite trends might offset each other.

Eco-friendly and biological products are subsidised by the Equalisation and Environment Fund (EEF). They will thus be significantly lower in price than comparable products which are harmful to the environment. It will be cheaper to live in harmony with nature.

Hand-made goods will probably not be cheaper but they will be affordable for normal people. As their earnings are not taxed, working people have more money left which they cannot hoard because of its perishability. The best way to have a sustainable quality of life will be to buy quality goods, such as hand-made furniture, shoes and clothes and naturally also art objects and culture.

To sum up, it is to be expected that the price level will be roughly the same as now. However, people’s quality of life will be significantly higher.

Advantage 44 – No interest hidden in prices

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

»All the costs accumulated in the production and pricing phases go into the end price. These have to be borne by the households directly or indirectly in their expenditure, since they are the last in the chain and can no longer pass on the costs.«

– Helmut Creutz

German economic analyst and publisher

At the present time interest, taxes and other levies have to be included in product pricing. This either increases prices or leads to merciless cut-throat competition that only big discount shops can survive. This is evident on all levels at the present time. 

In the Natural Economy of Life loans are normally interest-free. Hence, no hidden interest has to be included in product pricing. Prices are fair again and competition between discounters and small suppliers subsides.