Social Inequality and Money Creation: Is Our Financial System Making Things Worse?
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...
Why Does the Wealth Gap Keep Growing?
We all hear about how “hard work pays off,” but let’s be real: it often feels like some people start way ahead while the rest of us try to catch up. One big reason? The way our money is created. Our debt-based money system might actually be fueling social inequality, making it harder for most of us to get ahead while the rich stay… well, rich.
How Money Creation Fuels Social Inequality
Here’s a surprising fact: most money in our economy isn’t printed by the government. Instead, it’s created by private banks every time they issue a loan. When banks create money this way, it comes with a catch: debt and interest. So, while the banks profit from these loans, everyday people get stuck paying back more than they borrowed. And who benefits most? You guessed it—the wealthiest among us.
Why Debt-Based Money Creation Drives Inequality:
- Access to Credit: The wealthy have easier access to credit with better terms, which means they can make big investments—like buying property or stocks—that grow in value over time.
- Inflated Asset Prices: As banks pump out more money, it flows into assets (like real estate) that the wealthy can afford to buy, driving up prices and leaving everyone else struggling to catch up.
- Interest Payments Flowing Upward: Loans come with interest, which means borrowers are paying extra to banks. This often means a steady flow of money from the bottom up, reinforcing the wealth gap.
Why Debt-Driven Money Makes Inequality Worse
Debt-based money doesn’t just make it hard for people to build wealth—it actively deepens the wealth divide. Here’s how it happens:
- Rising Living Costs: As banks create more money, prices for things like housing and education rise. The wealthy benefit from the appreciation, while regular people face higher costs of living.
- Limited Wealth-Building Opportunities: The more expensive things get, the harder it is for most people to invest in assets like homes and stocks that traditionally build wealth.
- Wealth Concentration: With debt-based money, wealth and power get more concentrated at the top, creating a system where fewer people control more of society’s resources.
A Fairer Alternative: Debt-Free Money Creation
Imagine if money were created without debt attached—a system where the money supply served everyone, not just banks and wealthy investors. That’s what Sovereign Money offers: a way to create money publicly and debt-free, making it easier to reduce inequality.
How Sovereign Money Could Help:
- Debt-Free Wealth-Building: Without the need to repay interest, more people could afford to invest in homes, education, and businesses, creating more equal wealth opportunities.
- Stable Prices: With a more stable money supply, there’d be less upward pressure on asset prices, making essentials like housing and education more affordable.
- Money for the People: With money creation in public hands, we could fund public services and social programs that benefit everyone, rather than funneling wealth toward the top.
Ready to Reimagine Our Money System?
It’s time to rethink how money creation affects social inequality and consider a fairer alternative. Here’s how you can join the movement:
- Get the Full Picture: Sovereign Money explains how a debt-free economy could reduce inequality and create a fairer system.
- Join the Movement: Connect with others who believe in a money system that works for everyone.
- Share the Knowledge: Spread the word! Social equality starts with understanding the system that keeps holding people back.
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 does money creation increase inequality? When banks create money as debt, the wealthy get access to credit and assets that appreciate, while most people are left with rising costs and limited wealth-building options.
How would Sovereign Money help reduce inequality? With Sovereign Money, a public authority would create money debt-free, stabilizing prices and creating opportunities for everyone, not just the wealthy.
Doesn’t hard work pay off? Hard work matters, but when the financial system favors those who are already wealthy, it makes it harder for everyone else to catch up. Sovereign Money could level the playing field.
Image: jerichow
