PositiveMoney: The Gap Between the Rich and the Rest of Us

Jay Owen Reforming Global Finance


The gap between the very richest and the rest of us has increased continuously over the last thirty years. Did you know that top 10% of population earns on average 6 times more than the bottom 90%? Many factors contribute to this growing gap, but one of the most significant is least understood: the role of money creation by banks. 

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, which you can download below. 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. 

Read’Banking, Finance & Income Inequality’

If you’re pushed for time, there’s also a 3 minute video here, which explains a couple of the key points from the paper. 

Watch the video ‘Inequality: Why are the rich getting richer?’

1) We have to act now!

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. 

Can you take a minute to share this graphic with your friends?

1. You can share it on Facebook or just forward this email along to your friends.

2. Tweet it – try to think of organisations and people you think would be interested

3. Email the video to friends:

Text that you can use: 

Hi, I think you would be interested to see this video: Why are the rich getting richer? 

Together we can change the conversation and ultimately address one of the major causes of inequality.


2) Upcoming Events

Newcastle, October 28
Positive Money Meetup

Sheffield, October 28
Talk – ‘From Aristotle to Positive Money, a short history of monetary reform ideas’

Brighton, October 29
Discuss the money system and monetary reform

Swansea (Wales), October 29
Last Sinking Ship: Full Reserve Banking Open Debate

Norwich, October 29
Positive Money Meetup

Leeds, October 31
Positive Money Meetup

London-Hackney, November 4
Reading ‘Modernising Money’

London-Lambeth, November 4
Positive Money meetup

Leicester, November 6
Positive Money Meetup

Cardiff (Wales), November 6
Last Sinking Ship: Full Reserve Banking Open Debate

Aberystwyth (Wales), November 16
Film Screening & discussion panel – 97% Owned

Leeds, November 20
Enough Debt: Fixing the Financial System (talk by Ben Dyson)

Cardiff (Wales), November 26
Money Has Been Privatized!! Do People Realize This?


3) Latest from the Positive Money Blog

Economics students aim to change the curriculum

We’ll never have it so good again?

BBC: UK QE has failed, says quantitative easing inventor

What was your first reaction when you learned that banks create money?

Positive Money New Zealand on a national radio network

Lord Turner about Credit, Money and Leverage (Video)

Wealth inequality in the UK (video)

The economic madness of Help to Buy

Fix the money system before it destroys Israel

The housing market – unsustainable asset bubble or ladder to prosperity?


Best wishes,

Graham & rest of the team

Graham Hodgson,
Positive Money