Gesell’s Natural Economic Order as a Blueprint for a “Fairconomy” and a Sustainable Future

Key findings from this study

• The authors propose that existing monetary systems structurally generate growth imperatives, income inequality, unemployment, inflation, and financial crises through their artificial design mechanisms.
• The study establishes that Gesell's natural economic order framework provides theoretical conditions for approaching perfect competition and enabling human-scale development.
• The authors argue that monetary system redesign represents a prerequisite for achieving genuine economic sustainability rather than a supplementary policy intervention.

Overview

Current monetary systems structurally generate growth imperatives, income inequality, unemployment, inflation, and financial crises. The article argues these outcomes reflect fundamental design flaws in currency mechanisms rather than inevitable economic features. Silvio Gesell's natural economic order offers a theoretical alternative that could address sustainability while enabling conditions for perfect competition and human-scale development as defined by Max-Neef.

Methods and approach

The article conducts a theoretical analysis linking monetary system design to macroeconomic pathologies. It examines how artificial monetary structures prevent equilibrium conditions necessary for perfect competition. The framework compares existing financial paradigms against Gesell's proposed natural alternative to assess feasibility of human-scale development.

Results

The authors propose that modern monetary systems inherently produce unsustainable growth imperatives and persistent income disparities. These structural features generate secondary effects including cyclical unemployment, inflationary pressures, and recurring financial crises. Transitioning to Gesell's natural monetary order would theoretically enable conditions approximating perfect competition while supporting fulfillment of fundamental human needs rather than abstract economic expansion.

The study establishes that existing financial mechanisms prevent achievement of Max-Neef's human-scale development model. Current monetary architecture creates systemic barriers to both ecological sustainability and equitable resource distribution. Implementation of natural economic principles would require fundamental institutional reorganization beyond conventional policy adjustments.

Implications

Adopting Gesell's framework necessitates reconceptualizing currency as a public utility rather than a scarce commodity. This shift would alter incentive structures throughout economic systems, potentially reducing speculative dynamics and encouraging productive investment. Policy implications extend beyond monetary reform to encompass institutional design, labor markets, and resource allocation mechanisms.

The findings challenge assumptions underlying neoclassical economics regarding system stability and efficiency. Alternative monetary architectures merit serious institutional consideration given persistent structural failures in contemporary economies. Further research should examine implementation pathways and transition mechanisms required to move toward natural economic systems without generating destabilizing disruptions.

Scope and limitations

This summary is based on the study abstract and available metadata. It does not include a full analysis of the complete paper, supplementary materials, or underlying datasets unless explicitly stated. Findings should be interpreted in the context of the original publication.