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limitations_of_the_market_system

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limitations_of_the_market_system [2019/03/12 20:07] – [Poverty] freeworlderlimitations_of_the_market_system [2019/03/12 20:08] – [Debt] freeworlder
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 Even in the parts of the world where trade appears to create prosperity, it is backed almost entirely by debt. Since we know most money is [[https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy|created in the economy by commercial banks]] (not government), it follows that most money is actually a product of interesting-bearing debt, without which current economies would cease to function. (And notwithstanding the fact that interest on those 'new money' debts still needs to be produced somehow) Even in the parts of the world where trade appears to create prosperity, it is backed almost entirely by debt. Since we know most money is [[https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy|created in the economy by commercial banks]] (not government), it follows that most money is actually a product of interesting-bearing debt, without which current economies would cease to function. (And notwithstanding the fact that interest on those 'new money' debts still needs to be produced somehow)
  
-If we consider trade as being the best way to operate our society, then the question needs to be asked: why would we have debt? If a trading society and its members thrive on the continual movement of goods and services only, then it follows that debt should be unnecessary. Debt can also be interpreted as an 'error' within a trading society.+If we consider trade as being the best way to operate our society, then the question needs to be asked: why would we have debt? If a trading society and its members thrive on the continual movement of goods and services only, then it follows that debt should be unnecessary. Debt can logically be interpreted as an 'error' of a trading society.
 ===== Environmental damage ===== ===== Environmental damage =====
 Since profit and the creation of wealth is the primary driver of economies and behaviour, it follows that other 'externalities' like the environment take a secondary place when there is no direct incentive to protect it. Since profit and the creation of wealth is the primary driver of economies and behaviour, it follows that other 'externalities' like the environment take a secondary place when there is no direct incentive to protect it.
limitations_of_the_market_system.txt · Last modified: 2021/08/04 06:11 by 127.0.0.1