I was amazed when opening my LinkedIn account yesterday. A LinkedIn friend of mine shared a book cover with the title “the Power of Money.” I was so curious to see it. Then, I was trying to browse it in Google search and reading some from different links about that book. Though not a thorough reading, I was amazed with the idea inside this book.
Robert Pringle’s (2019) book, the Power of Money, offers a profound exploration of how money shapes economies, societies, and human behavior. Pringle argues that money, beyond its role as a medium of exchange, wields immense influence on societal structures and individual lives. He discusses the paradoxes of wealth creation, the failures of financial systems, and the potential consequences of monetary power concentrated in the hands of a few. I believe we know this fact almost in every country.
In reference to Pringle’s book, we know this book provides insights not only into the mechanics of money but also into the moral and ethical considerations that arise from its use. It often criticizes modern financial systems and the role of central banks in shaping economic policies. One of the central arguments in The Power of Money is that money serves as a tool for power concentration. Money often benefits a small elite at the expense of the broader population. Pringle criticizes the contemporary financial system, which allows the accumulation of wealth to be concentrated in the hands of a few.
With such a system, it can lead to growing economic inequality. He traces this phenomenon to the increasing role of financial markets in determining economic outcomes. In this condition, a speculative capital often trumps productive investment. This critique aligns with Thomas Piketty’s thesis in Capital in the Twenty-First Century. Piketty also asserts that the rate of return on capital exceeds the rate of economic growth. This eventually leads to entrenched wealth inequality.
Pringle also highlights the failures of central banking in preventing financial crises. It is identified particularly in the 2008 global financial meltdown. He argues that central banks, while possessing enormous power over money supply and interest rates, often fail to manage risks effectively. Pringle suggests for reforms in monetary policy to make central banks more accountable to the public rather than catering to financial elites. His argument echoes Joseph Stiglitz’s critique in The Price of Inequality, where Stieglitz discusses how institutions like central banks often serve corporate interests rather than working for the common good.
In a broader sense, Pringle is concerned with the moral implications of money’s influence over society. He suggests that as societies become more financially driven, the social contract is weakened. The market economy, Pringle argues, tends to reduce human relations to transactions. And, this condition finally leads to a loss of community and solidarity. The view above reflects Karl Polanyi’s argument in The Great Transformation. At that time, Polanyi criticizes the way market economies undermine social bonds by commodifying every aspect of life, from labor to land.
Pringle also addresses the psychological impacts of money. He suggests that wealth accumulation often becomes an end in itself. Therefore, it tends to distort human values and priorities. This insight is echoed by scholars like Tim Kasser in The High Price of Materialism. Kasser argues that a focus on wealth and possessions can lead to lower levels of well-being and life satisfaction.
In general, Robert Pringle’s The Power of Money offers a multifaceted critique of modern financial systems. He points to the dangers of unchecked monetary power. His work is a call to rethink the role of money in society, advocating for more equitable and accountable financial institutions. By exploring the intersections of economics, politics, and ethics, Pringle provides a timely analysis of the consequences of wealth concentration and the failures of modern capitalism.
His critique is in response to the moral underpinnings of the financial systems. Besides that, the idea in his book calls for a rebalancing of power away from financial elites and towards the broader public interest. Public know that only those who have lot of money will lead the nation. The rest or the majority are the oppressed.
Dr. Djuwari is an Associate Professor at Universitas Nahdlatul Ulama Surabaya (UNUSA) Indonesia. Surabaya, the editor of some research journals in the Philippines and Indonesia. He is also a journalist in some newspapers in Indonesia; the President of International Association of Scholarly Publishers, Editors, and Reviewers (IASPER), a small business owner of Djuw Café.
