Talk:Freiwirtschaft

From Wikipedia, the free encyclopedia

On a brief skimming of the article and attached link, it strikes me as a riduculus idea. Trying to eliminate storing of money (not just as cash, but also in banks) strikes me as a scheme with little benefit and large cost to society. Jrincayc 13:21, 22 Oct 2003 (UTC)

Please study the idea more before criticizing. --Erauch 16:34, 4 Sep 2004 (UTC)

---

Isn't the usual idea to have a charge for holding money, like 5% a year? Rather than having it expire.

Also, how is this different from inflation? Under inflation, money also loses value the longer you hold onto it. --Erauch 16:34, 4 Sep 2004 (UTC)

Yes, the idea is to lower the value of cash by 0.5% per month for example. It will not expire! The difference from inflation is, that if inflation is low people tend to keep money rather than to invest because interest rates decrease together with inflation rates. The result is a market which is not liquid, falling growth of economy and raising unemployment. The charge for holding money is regulated by the central bank instead. This may prevent the perodically change of economy growth.--Mandavi 23:28, 12 Apr 2005 (UTC)

But still, the effect is the same as inflation. --Erauch 23:10, Apr 13, 2005 (UTC)

The idea is only to decrease the value of cash, not when you deposit your money in a bank. The decrease of value only shall people motivate to make their money usable for economy (let them bring it to a bank), to keep the market liquid.--Mandavi 11:17, 23 Apr 2005 (UTC)

If true that would make it irrelevant. Who holds on to substantial quantities of cash nowadays? I believe the Freiwirtschaft idea applies to money in banks too. --Erauch 03:34, Apr 24, 2005 (UTC)

Well, the bank in that case has to make the money available for economy in order to have a liquid market. In fact, everyone who keeps money away from investment (because interest/profit is too low) has to pay the "fee". The problem nowadays with fluctuations of economy growth is based on the problem of keeping the money away from the market because interst is low. (Fed#Interest_rates) If worked with value decrease, an organisation can set the "interest" in form of the decease speed and may get a steady (and higher) growth rate. --Mandavi 22:55, 24 Apr 2005 (UTC)

Difference between inflation and Umlaufsicherung: An inflation will also reduce the value of any sort of credit you give out, therefore totally negating any advantage lending money out and investing it has over keeping it in a safe. Umlaufsicherung with Schwundgeld measures however, will leave credits untouched - When you keep your money in a safe, you are economically punished, but not if you lend it out as a credit. Hence, you have an incentive to lend it out without interest.

Note: In our current system, interest rates are required as a type of Umlaufsicherung. Because without interest, you would have no incentive of giving a credit to anyone since you can only lose in the long run. Schwundgeld tries to replace this interest, as it is damaging for the economy and economically unfair, allowing one to attain an income out of mere property. Freiwirtschaft and Freigeld use this Umlaufsicherung through Schwundgeld to make sure the money still flows, without the need for damaging interest rates. Dabljuh 18:29, 19 October 2005 (UTC)

[edit] Banks

How does money in banks work under this system? If I deposit, say, a $100 bill in the bank, does it lose value there, too, the same way it would if I just held on to the bill? Nik42 23:00, 14 October 2007 (UTC)