It has been said the money is the root of all evil. This is not so. In the last two centuries free markets and globalization have led to better living conditions and a reduction in extreme poverty across the world. In China, capitalist policy changes have helped to lift 748.5 million people out of extreme poverty, dropping the country’s poverty rate from 66.3 percent to just 0.3 percent. This is a remarkable achievement.
As extreme poverty has increased so has extreme wealth. In the U.S., the total share of wealth of the top 1% expanded from 7% in 1975 to 23% in 2014. Another statistic indicates that in 2016, the top 20% of earners held 77% of total household wealth. This is more than triple what the middle class held (middle being 60% of the usual income distribution). This “hallowing” out of the “middle” class has followed decades of monetary deregulation, a student loan crisis, and the long decline of institutions that support middle-class democracy like public schools, unions, functioning legislatures, and non-partisan news sources.
In the cases of extreme wealth and extreme poverty, money is not the solution or the problem. Extreme libertarian or socialist arguments fail to correct the primary problem with money: the person using it. Purely free markets fail to protect the world from unfettered greed and destruction, while socialist systems fail to kindle the power of individual ingenuity and passion. The right path lies somewhere in-between where growth and sustainability can be balanced through consumer protections, banking/monetary regulations, and campaign finance reform. Let’s take money back from the looters of democracy.