The Morality of Making Money

The money supply in Australia increases by at least 10 billion dollars each month. What does this actually mean? As money can be considered a measure of wealth it means Australia could be considered to have become wealthier by 10 billion dollars. This is new money that does not yet represent assets but promises of assets to come in the future. The Reserve Bank creates some money to loan to the banks who then create some more by loaning out more money than they have on deposits so 10 billion dollars+ is “made” each month. 
Who gets access to this money? By and large it is the people who already have money. That is, we give it to people who already have wealth and we give it for a small fee and we expect them to use the money wisely and to pay it back. We do not give it to people who have no wealth whether or not they are willing to pay the small fee.
This is fundamentally unfair. Surely in a just society we should give new money to people who have little wealth and we should give it for no fee.
We don’t because we are told that the poor will just spend the money on consumption and will not invest the money in ways to increase the total wealth of the country.
What if we could ensure that all the new money we create was given to those who had less wealth and if we could ensure it was invested in ways to increase the wealth of the country and in a way that would stop inflation of the general currency and leave the financial system intact? Wouldn’t this be a more moral way of “making” money?
We can do this and we can start doing it tomorrow. We can start in a small way and experiment to ensure it works as expected but it is worth a try particularly if we use the money to address climate change.
Let us run the experiment in Canberra which has about 1/50th of the population of Australia. If we assume we are going to create 10 billion each month then this would be $200M for Canberra but instead of creating $200M let us create $50M per month as a trial and let us distribute some of the money say $40M to the people in Canberra who consume on a per head basis the least amount of mains electricity. Let us call this money Energy Rewards. Let us now require that money to be INVESTED in ways to reduce greenhouse gas emissions either through reducing energy consumption or investing in ways to generate greenhouse gas free energy.
Let us create some other money and let us call it Water Rewards. Let us require that Water Rewards be invested in ways to reduce water consumption. This will solve the water problem and remove the need for restrictions.
Of course if you can’t be bothered investing your Rewards you can sell them for a discount to someone who can.
To see more about this idea go to
and there are many other items on that are on the same theme.

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