The connections between inequality and the money system
This subject, very near to Thomas Attwood’s heart, is being explored by a colleague of Ben Dyson, Graham Hodgson, researcher for Positive Money. Graham focusses on the role of money creation by banks, one of the most significant – but least understood – factors which have created the gap between the income/assets of the top 10% and the other 90%. He writes:
“As a volunteer for Positive Money, I’ve spent much of the last two years investigating the connections between inequality and the money system. The evidence I’ve compiled suggests that there are several factors contributing to the growth of inequality, but at the heart is the operation of the banking system. If we want to tackle inequality, we need to change the way that money is created.
“I’ve written up these initial findings into a 16 page academic paper, Banking, Finance and Income Inequality. The paper outlines some of the connections between the money system, the wider economy, and inequality. There’s further research to be done on some of the specific connections, but this lays out a framework for understanding the system as a whole.
“There is lots of discussion going on about inequality and its causes, but one of the most significant factors – the role of money creation by banks – is not discussed. We need to bring more people into this conversation. Inequality has grown at an alarming rate already. And the money system we have guarantees that it will get even worse.”
Next Positive Money Supporter CONFERENCE Saturday 1st March 2014, in Conway Hall, near Holborn, central London.
News of four earlier events, three in Wales and one in Leeds may be seen here.
Note an interesting section on the Positive Money website left hand side bar listing eight related issues – and not the subset one might expect.