Why Are Social Benefits Shrinking? Here’s How Money Creation is Tied to It All
90%
of money is created by banks out of thin air
90%
of which is used for speculation
90%
of the population does not know these facts...
Ever Wonder Why Social Benefits Seem to Be Getting… Less Beneficial?
From pensions to healthcare to education, it feels like we’re constantly being told there’s just “not enough money” to keep things running smoothly. Meanwhile, the prices go up, benefits go down, and we’re left scratching our heads. Here’s a hint: it’s not that the money isn’t there—it’s how it’s being created.
The Money Problem: Why Debt-Based Money Creation Drains Social Benefits
The way we create money today means that it doesn’t flow back into society the way it should. Instead, it’s created as debt, and that debt has a domino effect on government budgets, public spending, and, yes, our social benefits.
How Did We Get Here?
- Debt-Creation Money: Almost all money today is created as debt by banks issuing loans. This debt needs to be repaid—with interest! So, money flows toward banks, not back into public services.
- Squeezed Budgets: Governments rely on taxes to fund social benefits, but as debt grows, so do interest payments. The more spent on interest, the less there is for public services.
- Benefits Keep Shrinking: To balance budgets, governments start trimming social programs instead of addressing the underlying issue—debt-driven money creation.
How Debt-Driven Money Creation Hits Social Benefits Hard
Here’s what happens when money creation is tied to debt rather than public service:
- Less Money for Social Services: When interest payments pile up, governments are forced to cut spending. Unfortunately, that often means cuts to healthcare, education, pensions, and other social programs.
- Higher Prices, Lower Support: As debt grows, inflation creeps in, raising the cost of living. But when budgets shrink, benefits don’t keep up, so we’re left with less support for higher costs.
- More Inequality: Debt-based money creation tends to benefit banks and financial institutions, while the general public ends up footing the bill. This makes it harder for public services to keep up with demand, widening the gap between what people need and what’s available.
A Better Way: How Sovereign Money Can Restore Social Benefits
Imagine if money was created without debt attached—money that could go directly into the economy to support public services. That’s the idea behind Sovereign Money. Here’s why it could make all the difference:
How Sovereign Money Helps:
- Debt-Free Funding for Public Services: Sovereign Money would allow governments to fund social benefits directly without being weighed down by debt and interest.
- A Sustainable Budget: With a debt-free money system, governments can plan budgets around real needs, not debt repayments.
- Better, Fairer Benefits: Sovereign Money could level the playing field, ensuring social benefits grow with demand instead of shrinking under pressure.
In our view, this is the ultimate driver of the problem.
The question is, what will collapse first, society, the earth or the financial system?
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FAQs
Why can’t governments just print more money for social benefits? Right now, most money is created by private banks as debt, not by governments. That means governments rely on tax revenues and must pay back debt, limiting how much they can invest in public services.
How would Sovereign Money help social benefits? With Sovereign Money, a public authority would create money debt-free. This money could go directly into the economy, supporting social benefits without adding to debt.
Isn’t debt normal for governments? Debt is common, but it doesn’t have to be. A debt-free money system would reduce the need for governments to constantly borrow and could lead to a more stable economy with better public services.
Image: jerichow
