A better monetary system

The increasing gap between rich and poor is just one of the many sins of our failing democracy. The primary cause of failure is the ridiculous money system which enables and encourages the making of money out of money.

The first step to put things right would be so unpopular I won’t mention it but instead will explain how money would be managed in a true democracy.

1. The government being the only entity allowed to create money, will have control of it.

2. This means all banks and lending will be government-owned and operated.

3. It will be illegal for a person to lend another money for interest.

4. The culture will be that loans are made to help the borrower, not to enrich the lender.

5. Interest will be charged at a rate sufficient to cover all overheads, plus some extra when well qualified agents want to discourage unwise investments.

6. People will be encouraged to save by being paid a small rate of interest on their bank deposits.

7. The culture of greed and selfishness will be replaced by one of a just, caring society.

8. Money will generally retain its value as inflation will be close to zero.

9. Entrepreneurs and good businessmen/ women will still get rich but these benefit all of us.

10. Most economists will rubbish these ideas because the present chaos suits their employers. E Jennings, New Plymouth