Biological Economy and Biological Currency with Universal Income and Extinction of the Tax Authority, and with the Reduction/Elimination of Public Debt.
Biological Economy proposes the distribution among all citizens of a portion of the profits derived from the use of machines and robots, in order to generate a Universal Income and finance public spending. This system employs a “biological currency” that depreciates over time and with each transaction, for example, by one twelfth each year and with every exchange. This mechanism allows for the reissuance of the currency without generating inflation. Each new issuance of biological currency is divided among all citizens and the Public Administration: the former receive a Universal Income, while the latter funds public spending without resorting to taxpayers. Citizens with low income offset the tax pressure on the currency, while high incomes benefit only up to a certain threshold, thus respecting the principle of fiscal progressivity enshrined in the Constitutions of many countries. Since no income declaration is required, one can legitimately speak of the Extinction of the Tax Authority.
Currently, machines and robots generate income, but reduce employment for citizens, distributing also misery. In Biological Economy, however, even if jobs are lost due to automation, citizens still receive an income, resulting in the distribution of leisure time as well. Biological Economy promises a future where machines perform all kinds of work and humans need not fear competition. Furthermore, a country with significant public debt can easily proceed to its reduction by converting issued securities into similarly biological securities that depreciate over time and with each transaction. Considering a reduced usury rate to avoid penalizing lenders excessively, it is conceivable to erase all debt over a twenty-year period.
Dialogue with ChatGPT on the Extreme Case of a Single Owner of All the Money in the World and All Means of Production and Services in a Biological Economy Context
User: Regarding Biological Economy, consider this extreme case: all the money belongs to one person who owns all the machines and robots in the world that do all the work. What happens in this scenario?
Assistant: In this extreme scenario, several consequences would occur:
- Concentration of Wealth and Power:
- With all the wealth concentrated in the hands of one person, that individual would have immense power and control over the economy and resources. This could lead to significant inequality and potential social unrest.
- Economic Imbalance:
- The rest of the population would have no access to money, leading to widespread poverty and lack of purchasing power. The economy would likely collapse as demand for goods and services plummets.
- Redistribution Through Biological Currency:
- In the Biological Economy, even if one person initially accumulates all the wealth, the devaluation mechanism of the biological currency ensures redistribution. The currency depreciates over time and with each transaction, meaning the wealth would eventually be spread back to all citizens and the Public Administration.
- Sustainability of the System:
- The continuous devaluation of the currency prevents long-term accumulation of wealth by a single individual. This ensures a more equitable distribution of resources over time.
- Role of Public Administration:
- The Public Administration would use its share of the redistributed wealth to fund public expenses, maintaining social services and infrastructure without relying on taxpayers.
User: Right, and consider that even by possessing all the money in the world, it wouldn’t be forever because, upon expiry, the currency would wear out and be redistributed to all citizens and the Public Administration. Therefore, it’s impossible to accumulate all the wealth indefinitely. From another perspective, the only human working and paying for everything would be the only rich person.
Assistant: Exactly. In this scenario, even if one person initially accumulates all the wealth, the Biological Economy’s structure ensures that wealth cannot remain concentrated indefinitely. The periodic devaluation and redistribution of the biological currency ensure that wealth is continually cycled back into the broader economy, maintaining balance and preventing permanent accumulation by a single individual.
In a system where machines and robots perform all the work, the only “work” left for humans would be managing and innovating the system. However, with Universal Basic Income (UBI), even those not directly involved in productive work would have guaranteed income. Thus, the only human “working” (i.e., managing all machines and robots) and accumulating all the wealth would see this wealth periodically redistributed due to currency depreciation. This ensures that they cannot hold onto all the wealth forever, promoting a more balanced and equitable economic system.
User: Additionally, those receiving the Universal Basic Income would then spend it, benefiting the sole owner of all means of production and services. In total, it would result in the only rich person in the world working for everyone else.
Assistant: Indeed, this addition highlights an interesting dynamic: while the sole owner of all means of production and services would initially accumulate wealth, the recipients of the Universal Basic Income would inevitably spend their income on goods and services provided by this owner. Consequently, the wealth would cycle back to the owner. However, due to the devaluation mechanism of the biological currency, this wealth would not remain with the owner indefinitely.
Over time, the owner’s wealth would depreciate and be redistributed among all citizens and the Public Administration, ensuring a continuous flow of resources. This creates a unique situation where the richest person, by virtue of owning all productive assets, essentially ends up working for the benefit of everyone else, as their wealth is perpetually shared with the broader society.
