Nature as a model

Künzelsau, 03 August 2020 - The corona crisis is putting our tax system to the test. While rescue parachutes devour billions, revenues are in free fall. Tax increases will be unavoidable, but will find little acceptance. This is the challenge that could ultimately cause the current tax models to fail and be replaced by a financial system that makes taxes superfluous in the future.

An extraordinary tax estimate is planned for September, on the basis of which Finance Minister Olaf Scholz will present his draft for the 2021 budget. The serious lockdown-related slump in tax revenues gives rise to fear that sooner or later tax increases will be introduced. The middle class in particular is already being crushed by the tax burden. Location incentives also play a decisive role in the global economic crisis. The CDU finance and economics expert Friedrich Merz, for example, is calling for all state benefits to be put to the test. SPD leader Saskia Esken brings the wealth tax into play. Various other solutions could make the tax system even more unfair and complicated.

Entrepreneurs complain about the fairness of taxation in this country, as do families and millions of pensioners. Young people know that today's debts will land on their shoulders as tomorrow's tax burden. The fact that global corporations such as Google, Apple and Facebook pay hardly any taxes in Europe is something that no taxpayer can understand - and the list of justified complaints could go on endlessly.

It is therefore time to seriously question whether our tax system is without alternative. In twenty years of research work, the Gradido Academy for Economic Bionics has developed a novel economic and financial system based on natural laws. The essential law of nature in this context is the cycle of coming into being and passing away, because only where something passes away can something new be created again. The economic biologists assume that practically all the world's monetary problems could be solved if the economy followed this seemingly simple principle of evolution.

The 'Gradido model' is based on the common currency of the same name and offers a generous national budget without any tax revenue. The core principle of this evolutionary and unique model is the 'triple good'.

Stable money supply maintains equilibrium

In the Gradido system, money is created on the basis of population development. The boundless multiplication of book money is thus a thing of the past. In contrast to the current system, money is created on a credit basis without incurring debts. Instead, 50 percent of the money created expires within each year. This planned cycle of becoming and passing away keeps the money supply stable and the entire financial system in balance.

Three columns provide stability

The money is distributed according to a three-pillar principle: a total of 3,000 'Gradido' (GDD) are estimated each month for each person in the world. One third goes to each citizen as an 'active basic income', the second third is received by the state for its services to the community and the third part goes to a compensation and environmental fund to enable the remediation of the economic and ecological contaminated sites.

Academy founder Bernd Hückstädt explains: "The prevailing tax model stems from the obsolete financial system, which is completely overstretched, especially in these times of crisis. Without a transformation, it will destroy the world. Our alternative according to the Gradido model is based on the 'triple good', the good of the individual, the community and the whole. The 'Gradido' (GDD) is created in such a way that the basic needs of every person are secured through the 'Active Basic Income'. Every country will have a debt-free national budget, and we will also have the largest environmental pot in the history of mankind. All in all, there would be more money available for state services and the health system than there is at present. The triple bottom line is guaranteed - no debt and no taxes."

'Unconditional participation' for a fulfilled life

The 'Active Basic Income' is to be understood as an optimised further development of the 'Unconditional Basic Income', because it serves not only to secure the existence of the individual, but also to develop his or her potential. In return, those who want to take advantage of it bring their talents and inclinations into the community - including children and older people, according to their possibilities. Many activities in the social sector - such as the care of people in need of care and also child care - could be provided and accounted for within the framework of the 'Active Basic Income'. This would relieve the "state pot" and improve the provision of relevant areas of social life.

Blockchain for the emergency

Gradido strives for the peaceful transformation of the monetary system - a smooth transition from the old debt money system to the natural economy of life. However, should our financial system collapse, Gradido could be used as emergency money.

Currently, the academy is developing a globally scalable platform for the Gradido currency. The technical implementation is carried out decentrally as a crypto token in state-of-the-art Distributed Ledger Technology (DLT). If required, Gradido could be introduced as a dual currency and thus both electronically and as cash. In order to be available promptly in case of an emergency and to be able to maintain economic life, we are working hard to be able to introduce the 'Gradido' as a bonus system parallel to existing currencies in the near future.

Details of the 'Gradido model' under https://gradido.net/de/coin