Capitalism, Money and Inequality in the World

This chapter considers the important relationship between capitalism, money and inequality in the world. Ultimately, it asks what policies can be pursued to reduce economic inequality both within and between states once we have a deep understanding of how the structural logic of capitalism, the creation of new money in the economy and the generation of inequality are all interrelated. The chapter argues that it is too often forgotten that while economic growth over the last three centuries has lifted many people out of extreme poverty, capitalism is primarily an economic, monetary and accounting system whose aim is to generate income and wealth inequality. This helps to explain why, even after centuries of global economic growth, the division of wealth both within and between nations has never been starker. Since the overthrow of capitalism is neither nigh nor perhaps welcome, the chapter investigates how the fiscal and monetary policy of states can be deployed to lessen harmful economic and financial inequalities and work towards achieving the 10th sustainable development goal.