Why the Rich Are Getting Richer in 3 Minutes

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The gap between the very richest and the rest of us is getting bigger. Why? A common belief is that it is good for us all if a small group of people earn an enormous amount of money. The theory is their wealth trickles down to the rest of us, but this is a myth. In reality, money is sucked up from all of us into the pockets of a very small group of people. How does this happen?

The current money system distributes money from the bottom 90% to the top 10%. Because 97% of money is created by banks, someone has to pay interest on nearly every dollar in the circulation. This interest redistributes money from the bottom 90% of the population to the very top 10%. The bottom 90% of the population pays more interest to banks that they ever receive from them, which results in a redistribution of income from the bottom 90% of the population to the top 10%.

Businesses find themselves in a similar situation. The productive economy needs money to function, but because all money is created as debt, that sector also has to pay interest to the banks in order to function. This means that the real-economy businesses – shops, offices, factories etc – end up subsidising the banking sector.

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