The rich become richer, the poor get poorer – how can we change the distribution of wealth?

rich poor

When the rich become richer and poor poorer, reducing wealth inequality is one of the most important things that conscious people want to achieve.

However, if the method of money distribution does not change, all the work may be in vain.


Let’s see what the distribution of wealth in the world looks like at the moment. A total of 71% of people around the world have to borrow money to buy a house, a car or even for education, while only 8% of people are at the top of the pyramid. It is very asymmetrical. While a handful of people have de facto unrestricted access to wealth, the most of the world must live in poverty.

At the moment, money is being distributed to the top of this pyramid, creating inequality in wealth. When we see this inequality, we find that the whole financial system is the source. The solution could be to start creating and distributing money to the bottom of the pyramid.

Central and private banks

In this financial system, money is generated by central and private banks. However, the generated money is distributed only at the top of the pyramid, which deepens wealth inequality and increases indebtedness. This system works globally and causes only a handful of the “chosen” to have access to unlimited money. The only possible outcome is the widening gap of wealth inequality.

Three reasons of deepening of the gap

The reasons that deepen wealth inequality are simple.

• People who have the first access to almost free money lend money to those who have to borrow it at a much higher interest rate to acquire income-generating assets.
• Those who can borrow virtually unlimited amounts for less than 1% interest and displace enormous wealth by lending money to everyone below the top of the pyramid.
• Due to the rich already owning most of the income-generating assets, they increase their wealth by offering these assets with cheaply loaned money.

System of central banks and fraction reserve banking

The system of central banks, private banks and fractional reserve lending is global. The net result is that globally, the vast majority of wealth is owned and controlled by those at the very apex of the wealth/power pyramid: the top 8% own 85% of global wealth.

This system has been operating here for a long time and many people are trapped in a cycle of debt and livelihood. People cannot afford to live with dignity and must count every penny. This system has to change. Otherwise, wealth inequality will approach the point where social unrest starts taking place.


There are a number of proposed alternatives to this system. The only real solution in authors view is create and distribute money at the base of the pyramid, to those generating useful goods and services in the community economy, rather than to those in the top of the pyramid. This money isn’t borrowed into existence, so there is no interest to be skimmed by its creation.

This could be done with the help of blockchain and digital currencies as these do not need an intermediary, third party or the whole banking system to function.


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