The Boundaries of Wealth: Exploring the Consequences of Money
From an individual standpoint, money grants us freedom. With wealth, we can pursue our desires, indulge in exquisite meals, and traverse the world at will. The more money we possess, the greater our freedom and the luxuries we can afford.
However, it is crucial to recognize that freedom is not synonymous with money, for one simple reason: liberty is finite. Time, the essence of personal freedom, is book-ended by birth and death.
While the value of a dollar is derived from exchanging it for someone else’s time, the initial creation of currency aligns with the concept of the “greater fool” theory. We willingly trade our time for pieces of paper or digits on a screen, believing in their value and utility.
Once the currency becomes the be-all, end-all, the game is straightforward: strive to amass, take, or print enough to ensure that others work for you.
If the faith in the currency remains strong, people will willingly offer you their freedom in exchange for your capital. They will mix your drinks, build your houses, or extract minerals for your devices. By generating passive income, you create a self-fulfilling system where others fulfill your needs, and consequently, your freedom expands.
However, this expansion can only come at the expense of others who are invested in the same economic structure.
The monetary system appears to hinge on the personal choice of whether to play or leave well alone, but those who have worked minimum wage jobs know full well that when faced with dire circumstances, the threat of starvation is difficult to argue against.
It is money that greases the wheels of incentives, compelling individuals to sacrifice their liberty for greater ends, although not exclusively to the weakest determinant. Adam Smith’s well-cited example of the Pin Factory demonstrated how cooperation among ten workers, each specializing in a different task, could yield 48,000 pins in a day compared to a mere 10 pins if they worked independently. This showcases the benefits of effectively converting labor into tradable tokens, saving countless hours of work.
Yet, even with the undeniable gains resulting from the efficient exchange of labor, the game of currency carries inherent risks that are manifesting in the absence of well-managed checks. Here are a few points to consider:
Financial freedom is relative
True financial freedom is not defined by a specific amount, be it one million, two million, or a billion dollars. It is determined by one’s position within the financial hierarchy.
If everyone had a billion dollars, its purchasing power would diminish. Paradoxically, possessing a mere ten dollars in a society where most have only a cent would grant one the status of royalty. The pursuit of financial freedom through currency requires surpassing others, as it is a percentile rather than a paycheck that ultimately determines one’s position.
Achieving absolute freedom of choice, akin to the lifestyles of the wealthiest individuals, necessitates aggregating the freedom of others on an industrial scale through currency.
Freedoms outside the metric of price
Liberty can be viewed from two perspectives.
- Freedom in terms of what can be acquired through monetary means.
- Freedom is an inalienable right available to all individuals. Breathing clean air serves as an example of an inherent right.
If we consider individuals born with innate freedom, it should be possible to survive based on these inherent rights (2). However, in reality, working for others in some capacity is often mandated unless one possesses significant wealth.
The idealism of these inalienable rights was emphasized in the UN Declaration of Human Rights in 1948, but in most nations, they have faced numerous challenges. Previously unquestionable freedoms are now being attacked and commodified in alarming and dystopian ways, to the point of invading your sleep…
Living solely on the fruits of one’s own labor, free from the influence of currency, has become increasingly arduous. While some uncontacted tribes or indigenous communities still manage to maintain this way of life, their numbers dwindle daily as commercial interests encroach upon their environments.
Simultaneously, those at the bottom of society bear witness to the erosion of what was once considered inalienable rights. Basic necessities like clean water, due process, and access to public land are now subject to market forces.
At the other extreme, a pressing question arises:
What new commercial freedoms are being created? If we equate wealth with liberty, how much freedom can a single person accumulate, and how might they wield it?
Can anyone truly be considered immune to the reach of money? Could a billion-dollar bounty take out the President of the United States?
To hold a ten-figure bank account, no mark of sanity is required, nor is there a minimum threshold to meet.
History offers us a cautionary tale through the rogue science experiments of George Russ.
A decade ago he dumped approximately 100 tonnes of iron sulphate into the Pacific Ocean in an attempt to solve climate change.
The capital at his disposal granted him the freedom to tamper with our planet. The repercussions of his experiment remain largely unknown, except for the profound impact it had on local ecosystems.
Considering the possibilities, what could a billionaire do if they so desired?
What prevents someone from capturing polar bears on Wrangle Island and transporting them to the South Pole? In the modern world, nearly every obstacle can be overcome through monetary means, legally, or through illicit third-party arrangements.
With a billion dollars, such ventures would be easily attainable. Dropping off these polar bears near the Weddell Sea could potentially decimate the emperor penguin population — an idea ripe for a chilling horror film. The ability to execute such endeavors on a whim highlights the unchecked power amassed through immense wealth.
On a bleaker note, an individual with considerable resources could buy up all the bread in Bangladesh and deliberately induce famine. This scenario may seem far-fetched, but history reminds us of the absolute financial power England wielded over Ireland, feeding animals over people, leading to dire consequences for the Irish population.
One could even purchase a reputable news outlet like the Washington Post, effectively transforming it into a personal propaganda machine.
Our trajectory seems to be leading toward unassailable liberty for an exceedingly limited few.
This phenomenon has occurred in the past, resulting in disaster, even when initially driven by well-intentioned individuals. Concentrated power, whether held by the state or amassed through wealth, renders society susceptible to its whims and agendas.
Regrettably, horrifying examples of excessive wealth are not confined to the past. The dust is barely settling on the Epstein scandal, a case that exemplifies the corrupting effects of money when it buys the freedom of others.
It is worth acknowledging not all wealthy individuals are inherently bad. However, by allowing the existence of billionaires in our society, we open the door to the potential for individuals who are not just morally compromised but potentially psychopathic. As Lord Acton astutely remarked:
“Power tends to corrupt, and absolute power corrupts absolutely.”
Widening wealth disparities intensify this danger, as vividly portrayed by the archetypal Bond villains since the end of the Cold War.
Where will this trajectory ultimately lead us?
Toward great pyramids — monuments of wealth and power. If the ever-growing disparities between the wealthiest and the poorest persist, our collective time and efforts will increasingly revolve around the vanities of a privileged few.
While this situation may seem unsustainable, it is worth noting that ancient Egyptian civilization, characterized by absolute concentration of power, endured as one of the longest-surviving empires in history.
Despite our belief that we are above toiling for someone else’s extravagant ideals, we are all entangled in a system that devotes considerable resources to launching Teslas into space or constructing massive statues of politicians.
Countless lifetimes are spent perfecting extravagant yachts that serve no purpose other than fueling ever-expanding egos.
This is where we are.