The Future of the Economy

Professor Richard Werner notes that the current debt-based monetary system is not inherently bound to fail like many people would suggest. In fact, the ability for this system to allocate capital and increase people's willingness to go out and spend is actually a force for good. If an economy was to grow its output by 3% per year and the debt and money supply was only to grow by 2% per year, this would be perfectly fine. The solution is smaller banks with more of a focus on lending to businesses that plan to produce wealth.