Today, many countries of the world are subject to austerity policies. These policies generate a big damage to the people: devaluation of the currencies, inflation, decrease of the salaries, unemployment, less health, education and less pensions. Instead of austerity policies, the world requires a monetary policy that guarantee to all citizens of the world the financial resources to satisfy their basic needs.
It is important to say that currently the scarce factor of production are natural resources such as water and oil because man cannot create natural resources, but money really is not a scarce resource, simply because man can create the amount of money to attend the needs of the people; However, understanding this idea in all its implications requires a new and non-traditional way of thinking about the role of money in the economy.
Until now, the economy has considered that the scarce factor of production has been capital and has assumed the abundance of hands to produce, the labor factor, as well as the abundance of natural resources, land factor. But the world reality has shown that natural resources and especially water and oil are and will be scarce resources in the 21st century. This constitutes a total change in the paradigm of the economy, a thesis that is convincingly proven in the book Running Out: How Global Shortages Change the Economic Paradigm (1)