united for freedom 

Basic Economics

Friends, family and neighbours rarely use money in their exchanges. Goods and services are traded back and forth on an ad hoc informal basis. Neighbours help each other with services and provide products from their gardens and crafts. Obligations are remembered and repaid but the accounting is rudimentary and no serious attempt is made to balance the books though some informal attempt is made to remember who owes who what. But this is the problem with an informal barter economy. Friends, family and neighbours can take advantage of the informality and run up uncollectable debt. The church is infamous for relying on 20 percent of the congregation to do 80 percent of the work though this tendency for the few to sholder most of the responsibility is seen in most organizations. To turn an informal economy into a formal one requires a method of tracking exchanges.

It is possible in today's economy to steal several millions of dollars. This may be stolen from a multibillionaire or from millions of impoverished individuals. Fraud may appear benign in the amount of harm done when the theft is from banks or the very rich. But theft creates costs that are passed onto society and this produces inflation at least for the ones bearing the costs. The more exploitation there is in the economy the more costs are externalized and the less prices reflect true costs. The only way we can realistically prevent the externalization of costs is by eliminating inflationary money.

When people create a cost they need to pay the full cost of the choices they made. This makes basic sense. But when the money we use  creates invisible costs that cannot be contained then we have uncontrollable inflation. This is why Exchanges use inflation free, debt free money. 




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