What is a key cause of inequality in society?

What is a key cause of inequality in society?

What do supporters of internet freedom, the yellow vest movement in France, the Occupy protestors and the Arab Spring have in common? A feeling of INEQUALITY. A feeling that the system has too much control and that it is unfair.

All of these supporters use remarkably similar language to express a core belief: that the establishment’s economic model is rigged against them.

Statistically, these movements are correct: inequality is rising in all developed economies around the world. But, what is the common cause?

There are a number of factors that cause inequality in society, but one stands out across jurisdictions: the structure of the traditional banking system.

Here are a few technical findings:

  • banks create most of the money in advanced economies (not the state).
  • the mechanism for bank-created money intrinsically leads to wealth transfer from the many to the few.
  • the few use their preferential access to bank-created money to advance their own interests and to exercise disproportionate control over the political system.
  • this leads to institutional discrimination against out-groups.
  • the process of bank-created money reduces the effectiveness of monetary policy and causes excess variance in the business cycle.
  • the banking sector enjoys unparalleled protection by the establishment against competition.

A new book shows that a technology-based banking + money system could address these inherent drivers of inequality in society.

This book solves some mysteries, like the following:

  • Why is fractional reserve banking like a distorted version of the game Monopoly?
  • Why does the establishment find women’s sexual education repugnant?
  • Why does the economy blow up from time to time?
  • Why was Karl Marx so pissed off?
  • What does Professor Sybill Trelawney have in common with the governors of the Federal Reserve?

What is a key cause of inequality in society?

In the end, this is not really a book about money and banking; it is more about our values as a society.