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Gift money

 

There are three meaningful things you can do with money: you can use it to buy goods or services (purchase money), you can lend it to someone else (loan money) or you can donate it, for example to a charity (gift money).


Everyone understands why an economy cannot do without purchase money and loan money: Purchase money is needed to facilitate the exchange of goods between participants in the economic process. And without loan money, entrepreneurs would find it difficult to make investments. But money also needs to be donated – the more the better.

 

The necessity of gift money


Gift money is the money that’s ‘used up’ to finance education, science, the arts, religion, etc. It does not deliver immediate or guaranteed results, but in the long run, it does help people to develop their abilities. In this way, new ideas, inventions, etc., arise and these are the seeds for the future for any society.

 

Gift money is like the seed a farmer sows on his land; the future cannot be without it! Without seeds, the farmer won’t harvest. Without gift money, education, science and the arts will languish, and that is fatal for any society.


Cultural life

 

Money spent on education is one example of gift money. But the money spent in areas such as the arts, science, health care or religious life can also be called gift money. These areas together make up 'cultural life’: the area in which individual skills, abilities, knowledge and individual development play center stage.

 

Cultural life has a remarkable quality: if it flourishes, it has the tendency to spread, like ripples in a pond, allowing everything and everyone to share in it. Artists want to show their work to the whole world. Scientists want to see their discoveries applied wherever possible. Teachers want every last child in their class to take the next step.

 

Gift money is needed to make all this – and more – possible. It makes development possible. Intrinsically, gift money has no strings attached. Scientists, artists, doctors and teachers should have the freedom to work in their field of expertise on the basis of their experience and competence. It is then that cultural life will truly blossom.

 

Gift money as a means of financing cultural life


In the current situation, cultural life is financed primarily through tax money. But the state, which redistributes the money collected through taxes, abuses its position of power by attaching numerous and sometimes far-reaching conditions to making these funds available. Often, this is also accompanied by bureaucracy, meddling, waste and incompetence.

 

It is essential that cultural life should be financed with money that’s totally free of any strings: thus, gift money.

 

Sufficient gift money

 

There is more than enough potential gift money. According to economists such as Ben Bernanke and Paul Krugman, the financial crisis was essentially due to a global saving glut: there was much more saving money than entrepreneurs could invest in a meaningful way. So, banks started lending this money out for consumption purposes (‘subprime’ mortgages and the financing of national debts). All too often, the borrowers could not (and cannot) pay it back, and so arose the credit crisis.

 

The money in question was, in fact, superfluous to the loan money cycle. It had also been superfluous as purchase money, otherwise it could not have ended up as loan money. So, the only way to spend that money in a meaningful manner, was to donate it as gift money. The financial crisis has not solved the problem of superfluous money. Quite the contrary: after 2012, the IMF expects the saving glut to rise to levels unseen for a long time.

 

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