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The Natural Economic Order

Silvio Gesell

120 Pages
1936

The Natural Economic Order

A Plan to Secure an Uninterrupted Exchange of the Products of Labor, Free from Bureaucratic Interference, Usury and Exploitation

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The Natural Economic Order - Summary

The Natural Economic Order by Silvio Gesell presents a revolutionary economic theory aimed at creating a fair and efficient economic system. Published in 1936, this book proposes a plan to ensure the uninterrupted exchange of labor products, free from bureaucratic interference, usury, and exploitation. Gesell's ideas challenge traditional economic models by advocating for free money and land reform. His vision is to eliminate economic inequalities and create a system where wealth is distributed more equitably.

Key Ideas

1

Free Money

Gesell introduces the concept of 'free money,' which is designed to prevent hoarding and encourage spending. By implementing a system where money loses value over time, he aims to stimulate economic activity and ensure a continuous flow of goods and services. This idea challenges the traditional notion of money as a store of value and promotes a more dynamic and equitable economy.

2

Land Reform

Another central idea in 'The Natural Economic Order' is the reform of land ownership. Gesell argues that land should not be treated as private property but as a common good. By implementing land reforms, he believes that the exploitation of land and natural resources can be minimized, leading to a more sustainable and fair distribution of wealth. This idea is crucial for addressing economic inequalities and promoting environmental sustainability.

3

Elimination of Usury

Gesell strongly opposes the practice of usury, which he sees as a major source of economic injustice. He advocates for the elimination of interest on loans, arguing that it leads to the concentration of wealth and exploitation of borrowers. By removing usury, Gesell envisions a more equitable financial system where credit is accessible to all, and economic opportunities are not limited by the burden of debt.

FAQ's

The main objective of 'The Natural Economic Order' is to create a fair and efficient economic system by ensuring the uninterrupted exchange of labor products, free from bureaucratic interference, usury, and exploitation. Silvio Gesell aims to eliminate economic inequalities and promote a more equitable distribution of wealth.

The Natural Economic Order addresses economic inequality through the concepts of free money and land reform. By implementing a system where money loses value over time, it encourages spending and economic activity. Additionally, by treating land as a common good rather than private property, it aims to minimize exploitation and promote a fair distribution of wealth.

Silvio Gesell opposes the practice of usury because he believes it is a major source of economic injustice. He argues that interest on loans leads to the concentration of wealth and the exploitation of borrowers. By eliminating usury, Gesell envisions a more equitable financial system where credit is accessible to all, and economic opportunities are not limited by debt.

๐Ÿ’ก Full 15min Summary

Silvio Gesell's "The Natural Economic Order" advocates for an economic system based on self-interest and free competition, which he believes will lead to human advancement and individual sovereignty, surpassing both communism and flawed capitalism.
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Silvio Gesell's work, "The Natural Economic Order," presents an economic system that aligns with human nature, rather than one that arises spontaneously. Gesell believes that an economic system in which humanity flourishes will also be technically superior. He bases this natural economic order on self-interest, not religious principles, as the primary goal of economic life should be to meet physical needs. This system allows those who are successful to voluntarily support others.

Gesell's natural economic order shares similarities with the Manchester liberal free market system. However, he points out that Manchester economists incorrectly assumed that the existing conditions promoted free competition. The truth is, privileges related to land ownership and money skew competition. Gesell suggests that reforms such as free access to land and free money can create the right conditions for free competition, thereby realizing the ideals of the Manchester system.

In this natural order, the most capable individuals are favored through competition that is not hindered by privilege. This, Gesell believes, will lead to the advancement of the human race. He also suggests that land rent should be distributed to mothers to support child-rearing, thereby ending financial dependence for women. This would restore natural selection among individuals. In contrast, state control of the economy would hinder evolutionary progress.

Gesell asserts that the instinct for self-preservation is a better motivator for effort and productivity than altruistic ideals. He believes that communism fails to motivate people. The natural order, on the other hand, promises greater prosperity by fully unleashing self-interest. It represents progress beyond both early communism and recent flawed capitalism, moving towards individual sovereignty.

Gesell believes that the events of the First World War and its aftermath validate his theories. He argues that current ideologies lack robust economic programs and that reforms based on the natural order are urgently needed to prevent disaster. Nationalization, he contends, leads to official interference that is incompatible with individual freedom. The choices, according to Gesell, are to complete the transition to the natural order or revert to communism.

In his 1920 preface, Gesell reemphasizes that real-world events have proven his theories correct. The natural order allows for full individual development and eliminates the need for state intervention. He argues that communism is a reflection of primitive economics and reactionary control, while the natural order promises ongoing social progress through freedom.

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