Three basic rules that might make the private issuing money system work

The first rule is a complete separation between ownership and management. The second rule is that private firms only issue money to pay their workers’ wages, instead of owners’ profits, the revenue received will be used to reinvestment or paid back to the owners as profits. The third rule is the government taxes a firm on its revenue at a higher rate, if the ratio of the total wages to revenue is higher. These three rules can decrease the likelihood of dangerous levels of deflation or inflation. Because the system increases the amount of money at the level of the nominal GDP. And the government has the control of the supply of money, that by increasing the whole tax levels the government can reduce the amount of money issued by the private firms, as the cost of paying wages increases. Moreover, such system will increase the level of competitions. Firstly, it lowers the entry barriers, especially in the service sector where labour cost is the main cost of production. Secondly, workers want to work in a firm that generates more revenues, which means they are likely to get higher wages. Thirdly, the labour productivity might improve as workers’ wages have a direct link with their production. Fourthly, firms will always be careful to control their sizes within an efficient scale.