Everyone would like to be rich, but of course everyone cannot be rich.
The concept is simple, if everyone had loads of money, then why would people want to work, and so they would prefer to hire people to do things for them. But of course there would be no one to hire, as everyone else is rich and in the same situation!
So to get anything you would have to find a price that would motivate these other rich people to do things, and they in turn would have to find ways of motiving you. So if everyone had loads of money, the value of money would just decrease. What once cost $1 would now possibly cost (for example) $1,000,000.
Quite simply if everyone was rich then all that would happen is we would suffer hyper-inflation, a massive devaluation of money.
Economics requires disparity; there must be people who want more and are willing to work for it, and people who have more, who are willing to spend in exchange for services and goods.
The challenge comes if the spread of wealth is too big. If too many people are too poor, then society fails. While if too many people are too rich, then there isn’t enough people to work and society fails.
I’m not sure there is a perfect balance, but there is a healthy balance where everyone is motivated to make society better. A balance where there is enough chance for poor people to become less poor, creating motivation to be part of society. And the wealth of society is active rather than sitting in accounts doing nothing of any value.
Society works best when wealth is active, meaning it is used to create more things.
Banks have a very positive role to play in this, they should be able to loan money to businesses to allow for investment in new ventures, and in exchange receive a fair level of interest on the loans. But if banks take too much, then we get back to that place where there is too much in the hands of the richest, and not enough in the active part of the economic system to be healthy.
It’s a tough thing to get right, and it’s very rare that it will stay right for long. This capitalist system that we have is without a doubt the best system that mankind has ever used, but no one would honestly say it’s perfect.
When it gets out of balance in most respects it is destined to eventually work itself back to a manageable system. But there are times when the process of correction can be extremely painful for many involved.
Some of the rhetoric from extremists at either end of the economic scale will always sound preposterous to the majority of people. If it doesn’t sound scary to you then you may be part of the problem.