[One Sip of a Book] State-Led Currency System... "Increases Wealth Gap"

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"A state-led monetary system is an unstable institution. People must someday understand that it causes severe financial crises, unfair redistribution, family breakdown, poverty, and lack of freedom."

In a capitalist system, the wealth gap is often seen as a result of individual ability. However, two German economists argue that the root cause of economic inequality lies in the state-led 'money' system. They claim that the state monopoly on the monetary system operates in a way that favors the wealthy. The authors point out, "State intervention covers up and conceals the real causes of undesirable developments occurring within the economy and society."

Do you feel that our society is becoming more distant? Why does the majority get pressured while a minority benefits? Why are the traditional bonds of social cohesion wearing thin, and why are people becoming obsessed with materialism and growing cold-hearted? Why do the rich get richer and the poor get poorer? The real cause of all these problems lies in the monetary system. - Page 13, 'Stop Being Used by Money'

Without money, the complex division of labor in society cannot be properly maintained. Division of labor brings tremendous productivity, which sustains the entire population of the Earth. (Omitted) For money to maintain purchasing power and continuously transfer it into the future, the value of money must be stable. - Pages 31-33, 'The Necessity of Irreplaceable Money'

Inflation causes wealth redistribution. Inflation benefits those who first secure the newly created money. The first to get this money can buy goods at unchanged prices, gaining significant profits. Meanwhile, those who receive the new money later or cannot get it at all become victims. By the time they secure additional income, prices of goods and services have already risen. - Page 113, 'The True Culprit of Wealth Inequality'

The state makes the poor poorer and the rich richer through the monetary system, expansion of the money supply, and increasing debt. However, because few can see through these actions, the state always shifts responsibility to others. Then, the state appears as a social welfare agent and begins redistributing income. It even takes money from the rich to give to the poor. This is the deceptive raison d'?tre created by the state itself. But these problems would not exist at all if the state did not have a monopoly on money. - Page 178, 'The Algorithm of Wealth and Poverty'

Social imbalance gradually deepens. Over time, people start new cycles with increasingly accumulated malignant debt. The same pattern has repeated since the financial crisis that struck the world in the 1970s. Whenever a crisis hits, interest rates are inevitably lowered, and newly created money rescues those burdened with excessive debt. - Page 276, 'A Society That Encourages Debt'

Why Do Only They Get Rich? | Written by Philipp Bagus & Andreas Markwart | Translated by Bae Jin-ah | Book Moment | 324 pages | 22,000 KRW

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