I knew the story already and the idea of interest-free money by Silvio Gesell behind it (“The Natural Economic Order”), but doing some research for a community project today stumbled upon it again: The famous Woergl experiment of the 1930s:
Yes, it’s all about making the hoarding of money impossible by a negative interest rate, a tax on holding money – which will lead to money being spent and invested more quickly resulting in growth, employment and income. And yes, this is not just textbook economics by yet another clueless academic, this is a real life example proving that Gesell was right with his monetary theories. Even Keynes had to admit that.
The blog is well worth reading anyway. Reforming the monetary system is key if we ever want to get over its in-built failures (interest and money as debt, created out of thin air) that will again and again lead to breakdowns and crises – and have done so already eight times in the past 300 years alone. Today’s blog entry also has a very nice quote:
‘The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.’
(That’s what they forgot during the French Revolution. Setting up institutions for issuing sovereign money and of course, a truly free press, both pillars desperately needed for a real democracy. But then, who was behind the French Revolution …?
The issue is ongoing, the fight still hasn’t ended, hasn’t even begun properly since so many people are still totally clueless about all this …)