Because money is created by debt, and existing money tends to be funnelled into enterprises that yield more money, both debt and capital tend to accumulate.
Translation: rich get richer, poor get poorer, and not by coincidence. It's two sides of the same coin! In this current system (which can be changed! – see Solutions) any rise in prosperity takes its toll as mirror-image image misery.
Because of how money is created, every dollar, pound or euro in circulation puts extra money in the pockets of banks and their owners. Interest payments can also be hidden in taxes and prices, see Why you're losing out.
Those who actually do stuff (aka the real economy) have less control than those merely seeking ways to exploit and/or influence (the 'financial sector'). In the 19th century, it was common sense that "those who work in the mills ought to own them."
Geographical inequality within countries, e.g. between North and South (UK, Italy), and worldwide (e.g. 'development aid' that sends the money right back to Western corporations via dams, or even arms, watch cute animation here.)
The low-paid jobs are the first to be sacrificed when the next crisis comes along. Instability thus hits those the hardest who are least able to absorb the shock: temporary and low-paid workers. One of the few businesses that boomed consistently in recent years: temp agencies!
Because house prices keep rising (see Housing), those with no houses lose out in comparison. After a given period, a regular saver will end up with less purchasing power than someone who had the same amount parked in real estate. Housing-related inequality also widens the cleft between old and young, see Housing.
All of these 5 ills can be greatly soothed by Sovereign Money Creation.
Positive Money, Inequality
John Perkins – Confessions of an Economic Hitman
And from our blog: 3rd-world debt
- www.wissensmanufaktur.net has a "Plan B" that involves a new way in which to handle land ownership.