Editing Silvio Gesell (section)

==Economic philosophy==
In his book ''[[The Natural Economic Order]] through Free Land and Free Money'' ({{langx|de|Die natürliche Wirtschaftsordnung durch Freiland und Freigeld}}), which was self-published, Gesell stated his theories.
Gesell based his economical ideas on the [[self-interest]] of people, as a healthy and natural inducement which allows them to provide for their necessities and become economically active.
He called for free, fair business competition, with equal chances for all.
This included the removal of all [[legal]] and inherited [[Privilege (legal ethics)|privilege]]s.
Gesell believed that an economic system must do justice to individual proclivities.
Such circumstances should establish an economical order for itself, otherwise it is set up for failure.
For that reason, Gesell referred to his economical model as "natural".
With such a statement, he consciously held himself in contradiction to [[Karl Marx]], who demanded a change in [[social relation]]s.
{{Blockquote |text="Once again is the marxistic goal to be achieved by force, on the road of law. The nature of people is directed against this goal, arguing it." |author=Silvio Gesell |source=second [[memorandum]] for german [[trade unions]] for implementation of their activities against [[capitalism]], 1922}}

Under Freiwirtschaft, the most talented people would have the greatest income, without distortion by [[interest]] and [[rent-seeking]].
The economic status of the less-talented would improve because they would not be forced to pay interest and rent charges.
According to Gesell, this would reduce inequality between the [[poor]] and the rich.
Furthermore, greater [[per capita income]]s would mean that the poor would have a greater chance of escaping poverty, in part because poor people would have greater disposable income and spending power.

Silvio Gesell advocated a [[International order|world order]] and considered himself a [[world citizen]].
According to his belief system, inspired by [[Henry George]], the [[Earth]] should belong to all people equally, with no difference in [[Race (human categorization)|race]], [[sex]], status, [[asset]]s, [[religion]], [[Ageing|age]], or [[From each according to his ability, to each according to his needs|ability to provide]].
However, his land reform proposal was different from [[Georgism]].
He believed that [[land value tax]]es could not solve the problem of land rent,<ref name="NEO-part-1-intro"/> as he believed that the taxes could be passed onto the tenants.<ref name="NEO-part-1-chap-11"/>
He believed that the private ownership of land should be abolished and replaced by free-land reform, a sort of public lease of land.<ref name="NEO-part-2-chap-3">{{Cite web |last=Gesell |first=Silvio |title=Die natürliche Wirtschaftsordnung durch Freiland und Freigeld |trans-title=The Natural Economic Order/Part II/Chapter 3: Free-Land In Practice |date=1916 |location=Bern, Switzerland |translator-last=Pye |translator-first=Philip |via=The Anarchist Library |url=https://theanarchistlibrary.org/library/silvio-gesell-the-natural-economic-order#toc25 |archive-url=https://web.archive.org/web/20250317140424/https://theanarchistlibrary.org/library/silvio-gesell-the-natural-economic-order#toc25 |archive-date=17 March 2025 |access-date=30 April 2025 |df=dmy-all |isbn=9781610330442}}</ref>
He proposed that public ownership of land should be accomplished by making the government [[Eminent domain|purchase all land from current landowners]] through a massive amount of government [[land bonds]], which would be paid over in 20 years by [[leasing]] the land through a system of competitive bidding for leases.<ref name="baynham-2023"/>
This would achieve many of the intended effects of Georgism, but two of the main differences are that it would compensate previous landowners through bond payments and it would not be necessary to repeatedly [[Real estate appraisal|re-appraise]] the value of land.<ref name="sidman-lecture-7"/>
Landowners would no longer own their land, but they would be compensated through the bond payments and could obtain private [[Possession (law)|possession]] of their land if they pay the leases.<ref name="sidman-lecture-7"/>

According to Silvio Gesell, establishing [[welfare state]]s without abolishing [[private ownership]] of land would be ineffective, because the proceeds of the worker's labor would be determined by the proceeds of labor that they obtain on the lands of the [[landowner]]s, rather than free-land.<ref name="NEO-part-1-chap-13">{{Cite web |last=Gesell |first=Silvio |title=Die natürliche Wirtschaftsordnung durch Freiland und Freigeld |trans-title=The Natural Economic Order/Part I/Chapter 13: The Entire Wage-Scale Up To The Highest Salaries Is Based On The Labour-Proceeds Of Cultivators Of Freeland |date=1916 |location=Bern, Switzerland |translator-last=Pye |translator-first=Philip |via=The Anarchist Library |url=https://theanarchistlibrary.org/library/silvio-gesell-the-natural-economic-order#toc17 |archive-url=https://web.archive.org/web/20250317140424/https://theanarchistlibrary.org/library/silvio-gesell-the-natural-economic-order#toc17 |archive-date=17 March 2025 |access-date=30 April 2025 |df=dmy-all |isbn=9781610330442}}</ref>
Private ownership of land converts all the advantages of using one's land into [[cash]] and thus belongs to the landowner.<ref name="NEO-part-2-chap-4">{{Cite web |last=Gesell |first=Silvio |title=Die natürliche Wirtschaftsordnung durch Freiland und Freigeld |trans-title=The Natural Economic Order/Part II/Chapter 4: Effects Of Nationalisation Of The Land |date=1916 |location=Bern, Switzerland |translator-last=Pye |translator-first=Philip |via=The Anarchist Library |url=https://theanarchistlibrary.org/library/silvio-gesell-the-natural-economic-order#toc26 |archive-url=https://web.archive.org/web/20250317140424/https://theanarchistlibrary.org/library/silvio-gesell-the-natural-economic-order#toc26 |archive-date=17 March 2025 |access-date=30 April 2025 |df=dmy-all |isbn=9781610330442}}</ref>
In order to not cancel the effects of welfare [[policies]], Silvio Gesell believed that Free-Land reform was necessary.

Some regard Gesell's idea of Freigeld as a [[negative interest rate]] policy, but they have different effects.
Under the Freigeld reforms of Gesell, hoarding money becomes impossible because the face-value of money depreciates regularly.
This forces the circulation of money.<ref>{{cite news|last1=Bershidsky|first1=Leonid|title='Neglected Prophet' of Economics Got It Right| url=https://www.bloomberg.com/view/articles/2015-07-03/-neglected-prophet-of-economics-got-it-right|newspaper=Bloomberg|date=3 July 2015 |access-date=1 June 2017}}</ref>
By contrast, it is possible to hoard money on negative interests, since the face-value of money is constant and people can use their money as a means of [[saving]].
For example, Japan's negative interest rates drove up the sales of [[safe]]s and strongboxes.<ref>{{cite news|last1=Shen|first1=Lucinda|title=Japan's Negative Interest Rates Are Driving up Sales of Safes|url=http://fortune.com/2016/02/23/japans-negative-interest-rate-driving-up-safe-sales/|access-date=1 June 2017|work=Fortune|date=2016-02-23}}</ref>

Gesell denied [[Value (economics)|value theory in economics]].
He thought that value theory is useless and prevents economics from becoming science, and that a currency administration guided by value theory was doomed to sterility and inactivity.<ref name="NEO-part-3-chap-3">{{Cite web |last=Gesell |first=Silvio |title=Die natürliche Wirtschaftsordnung durch Freiland und Freigeld |trans-title=The Natural Economic Order/Part III/Chapter 3:So-Called "Value" |date=1916 |location=Bern, Switzerland |translator-last=Pye |translator-first=Philip |via=The Anarchist Library |url=https://theanarchistlibrary.org/library/silvio-gesell-the-natural-economic-order#toc33 |archive-url=https://web.archive.org/web/20250317140424/https://theanarchistlibrary.org/library/silvio-gesell-the-natural-economic-order#toc33 |archive-date=17 March 2025 |access-date=30 April 2025 |df=dmy-all |isbn=9781610330442}}</ref>