Comparing two market economy theories, I think Gesell had the best economic theory because he thought about all people, not just those who own a business.

While John Maynard Keynes provided in his General Theory of Employment, Interest and Money a theory in which both the state and the private sector had important roles, where the state would actuate production by deficit spending, but which stated that there "must be significant slack in the labor market before fiscal expansion is justified", Gesell provided a theory with his Natural Economic Order which was imho more social. The idea of the Freiwirtschaft should ensure a natural decrease of the worth of money if not flowing, making it unable to be hoarded. Unlike Keynes, he provided a solution that a full employment (that everyone who can work would have a job) can be reached, and that the rate of economic growth would be set by the entire society. Unlike Keynes, he stated that MONEY were just a medium of exchange and should not have any own value with superiority above work or things, and he was strictly against incomes through interests alone.


Wikipedia wrote:

According to Silvio Gesell, all human-produced goods are subject to expensive storage, whereas money is not: Grain loses its weight, metal products rust, housing deteroriates. Therefore money has a supreme advantage over all other goods. John Maynard Keynes found another effect, which he deemed more important: liquidity preference. Being "liquid" with money is a great advantage to anybody, much more so than having comparable amounts (past utility) of any product. The result is that people will not even provide zero-risk, inflation corrected credits unless a certain interest rate is offered. Freigeld simply reduces this 'primordial' interest rate, which is estimated to be somewhere around 3% to 5%, by an absolute, in order to lower the average interest rate to a value around 0.

That's why I think that Gesell's theory of Freiwirtschaft is more thought through, and much more social than the theory of Keynes, and that's why I do prefer the first (Freigeld) above the latter (Keynesianism). And that's why I could imagine a world where all land is Free Land, where all money is Free Money.

What is your opinion about these theories? Do you know of better economic theories? If yes, please explain why they are better than these two.

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Founder of BOINC team Objectivists. Oh the humanity! Rational people crunching data!
I did NOT authorize this belly writing!

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Is that your opinion about these 2 theories, or about my attemt to start a discussion about this topic?

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