geograph-3682277-by-Chris-DownerThe purpose of money is to facilitate economic relationships. But banks have turned it into an asset that they trade to make themselves and their investors rich. They can do this because they create new money whenever they make an interest-bearing loan, and that loan is an asset that can be traded.

Because GDP measures only the quantity of money activity, and not its quality or usefulness, it encourages banks to lend as much as possible. Most of this new money goes into assets such as property and financial instruments, rather than being invested in productive wealth-creation. This leads to asset inflation, which makes the owners of assets richer at the expense of everyone else.

Effective relationships – including economic relationships – are built on equality, but the law gives big privileges to corporations, and the bigger and more powerful the corporations become, the bigger are the privileges they enjoy. Those privileges are driven by the need to maximise GDP, which large corporations can do most effectively because they are only concerned with returning money-value for their shareholders.

Public service providers cannot compete effectively in these circumstances. The benefits of collaborative working and collective ownership are lost when they are not measured and prioritised.

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