Silvio Gesell

Johann Silvio Gesell (German: [ɡəˈzɛl]; 17 March 1862 – 11 March 1930) was a German-Argentine economist, entrepreneur, and social reformer. He was the founder of Freiwirtschaft (German for "free economy"), an economic model for market socialism. In 1900, he founded the magazine Money and Land Reform (German: Die Geld- und Bodenreform), but it soon closed for financial reasons. During his time in Oranienburg, Gesell started the magazine Der Physiokrat together with George Heinrich Blumenthal. In 1914, it closed due to censorship. In 1916, he published his most famous work, The Natural Economic Order. Gesell is mainly known for his monetary theory. In particular, he noted the asymmetry between the durability and hoardability of money and the finite shelf life of goods and services which depreciate due to entropy and the passage of time. He believed that people who are able to save or hoard money have an unfair economic advantage over people who are dependent on producing and selling decayable goods and services for their livelihoods. Gesell theorized that the unfair premium enjoyed by hoarders expressed itself in interest rates and spawned recessions, an argument that later influenced John Maynard Keynes's theory of liquidity preference. To resolve this problem, Gesell proposed a new form of money that depreciates over time (German: Freigeld). Gesell also supported free land (German: Freiland) and free trade (German: Freihandel). However, he disagreed with Henry George's contention that land value taxes could solve the problem of land rent, as Gesell believed that such taxes could be passed onto the tenants. Instead, Gesell proposed nationalizing all land from current landowners, with the purchases financed by land bonds that would be paid over 20 years from revenues raised by leasing the purchased land through competitive bidding. This would achieve many of the intended effects of Georgism, but with...