By Common Dreams · 3 Oct 2014
The financial and economic crisis has exacerbated rising inequality and fueled a social crisis. In OECD countries the income of the top 10 percent of the population is 9.5 times that of the bottom 10 percent, up by more than 30 percent in 25 years. Anchored poverty has increased by approximately 2 percentage points between 2007 and 2011, with much larger increases in countries that have experienced the deepest and longest downturns. The number of those living in households without any income from work has doubled in Greece, Ireland, and Spain. And worryingly for our future, the youth have now replaced the elderly as the group experiencing the greatest risk of income poverty.
Money and Its Distributon
An ongoing and increasing problem in all societies is the growing numbers of poverty stricken people.
All our real economies consist of completed exchanges of goods and/or services.
All human beings have to make exchanges of goods and/or services with others in order to survive, let alone flourish.
Making exchanges without the assistance of money is extremely difficult to do hence in cash based societies such exchanges do not happen.
Money is the perfect facilitator of exchanges, it is purpose designed to fill this role.
Everybody can and needs to make exchanges.
Under [all?] current money systems however those without any money are denied access to this exchange facilitator, i.e. new money. New money is only supplied by banks, at a cost [interest], to those who can afford it, i.e. who already have money. Thus those without money are systemically denied access to the one thing, new money, that would enable them to become economically active in their own right.
This is not a circumstance defined by nature however but one that exists because of humanly created systems which enforce it.
It is quite possible to change current money systems to enable new money to be issued to anyone who needs it to make an exchange. The only proviso being that the first users of new money recognise that it requires that they subsequently sell the equivalent value of goods and/or services into the community and then forego the money received from the sale because they have already spent its value when they spent the new money.