Think of money ….

as water

CITIZENS

ENTERPRISES

GOVERNMENT

LOCAL AUTHORITIES

The economy, then, is like a series of bathtubs. Every month, citizens paytheir bills. The moneygoes to enterprises, government and localauthorities. As the month progresses, citizens continue to payout and have less and less in their accounts.

CITIZENS

ENTERPRISES

GOVERNMENT

LOCAL AUTHORITIES

Time to refill!As wages , benefits, pensions etc., citizensget money from enterprises, the government and localauthorities.

When you present it like this, it looks as ifthe amount of moneyin the economyis constant. As long as it keeps circulating. However…..

CITIZENS

ENTERPRISES

GOVERNMENT

LOCAL AUTHORITIES

Every time a citizen buysa house with a bank loan, more money is added to the economy.

As the Bank provides the loan without borrowingmoney itself, moremoney enters the system.

Of course, the bank loanhardly fills the bathtubwith water that can be drained off. People often buy things with that money so you couldthink of houses and cars as bath toys sort of!

The amount of money tied up in property is huge. Manyhave borrowed more money than they can pay off in their lifetimes.

BANK

CITIZENS

ENTERPRISES

GOVERNMENT

LOCAL AUTHORITIES

So the system looks more like this, with citizens payinginterest and mortgage to the banks everymonth.

Note that the money”evaporates” when the bank debt is repaid

BANK

ENTERPRISES

GOVERNMENT

LOCAL AUTHORITIES

CITIZENS’(example Sweden)

Monthly350 Billion

SEK

Available1700 Billion

SEK

Assets4000 Billion

SEK

Citzens own the enterprises and the banks and it is the governmentthat represents them so the model should look more like this

So how can we tackle….

Unemployment?

CITIZENS

ENTERPRISES

GOVERNMENT

LOCAL AUTHORITIES

If citizens spent a littlemore money eachmonth and if there wereincentives to employmore people, more jobswould be demanded.

From the model you seethat citizens need spendonly, say, 10% more to stimulate employment. When the jobless get jobs they will start to spend so it is only a temporary measure.

Time

VAT S

Current

High unemployment, lowerVAT

HIGH EMPLOYMENTRAISE VAT

VAT SURCHARGE EMPLOYMENT STIMULATION MECHANISM

EMPLOY-MENT

100%

WAIT!

You say ….

There are so many reasonswhy that won’twork

The rich wouldn’t allow you

You know nothing about political economy

Companies would just import more

There are 7 billion reasons why we needan economy that works for us, our planet

and future generations.Join us. Join the dialogue.