The arithmetic underpinning Debt Based Fiat Money and Fractional Reserve Banking leads to the concentration of profit in the financial sector. As the enabler of the monetary authority, in this context government spending will gradually crowd out private spending.
The above necessarily results in a system that is stifled by government regulation and where government picks winners and losers by the distribution of subsidies to and/or the protection from legal prosecution of chosen entities.
As government picks its allies, money inevitably flows through these entities allowing them to become cross-market monoliths thus enabling them to acquire academic and media assets.
This is how the values and the knowledge of a society are shaped and channeled.
At the same time, as government deliberately and progressively debases the currency, the purchasing power of individuals is diminished thus fostering ever greater and more pervasive use of debt for even the most trivial expenditures.
Eventually, individuals become dependent on government to the extent that their quality of life and their value judgement is inextricably tied to the perpetuation of the system and its expansion regardless of any moral considerations. The vast majority of people in the West today are dependent on government for their livelihood either because they are employed directly by the administration or because the retirement they were promised is predicated on the system surviving and expanding. At this juncture, considerations of good and bad, moral or immoral or long term sustainability vs short term gratification take a back seat to keeping the system together and expanding it.
Now, picture this if you will.
Imagine a world where government was dedicated to protecting the value of the currency.
In this hypothetical world, debt growth would be severely curtailed. As a direct consequence, government would necessarily be limited to fundamental functions. In this world too, the cost of living would remain stable and in some instances would diminish. In this world, politics would become largely a matter of true ideology rather than a desire to ride the gravy train of immunity and privilege afforded by fiat money.
But most importantly, in this world individuals would find it more advantageous to save because their work and their production suddenly enjoys the protection of sound money. As a direct consequence, individuals would instantly regain full control of their lives thus they would also regain full control of their moral choices. No more dilemmas. No more wondering whether one should act on principle and quit their job or carry on in an environment that is morally corrupt and wasteful because of their fear to lose their “quality of life”.
True freedom can only come about if individuals can make choices inherent to their true beliefs rather than expedient choices because the alternative would result in a loss of quality of life.