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Figure 16 Hurrah! 2.5% Growth Again! Why politicians, industrialists and union leaders still call for measures to boost economic growth is easily explained: During phases of decreasing growth rates, the discrepancy between income from capital and labour or the redistribution of wealth from labour to capital becomes more severe. This means increasing social and ecological problems and economic and political tensions. Continual economic growth, however, results in the depletion of natural resources. That means, in the present monetary system, we have a choice between ecological or economic collapse. In addition, the concentration of money in the hands of fewer people and large multinational corporations creates a constant pressure for large scale investments, e.g., atomic power plants, huge dams for hydroelectric power, and arms. From a purely economic angle, the U.S.A. and Europe are displaying politically contradictory behaviour. Installing bigger and better weapons against Russia on the one hand, and sending butter, wheat and technological know-how to Russia on the other, made perfect economic sense: Military production is the only area where the "saturation" point can be postponed indefinitely as long as "the enemy" is equally able to develop faster and better weapons. Profits in the military sector are far greater than any profits made in the civilian sectors of our economy. As long as every investment has to compete with the moneymaking power of money on the money market, most ecological investments, aimed at creating sustainable systems (i.e., stopping quantitative growth at an optimal level), will be difficult to implement on a larger scale. Today, people who have to borrow money for ecological investments usually lose - economically. If interest could be abolished they might at least break even, although the difference from other 36

Margit Kennedy (!) - Interest and Inflation Free Money  

Copyright 1995 by Margrit Kennedy) (Published by Seva International; ISBN 0-9643025-0-0; 1 2 LIST OF FIGURES:..................................

Margit Kennedy (!) - Interest and Inflation Free Money  

Copyright 1995 by Margrit Kennedy) (Published by Seva International; ISBN 0-9643025-0-0; 1 2 LIST OF FIGURES:..................................

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