Populism vs. Finance: Is Money Helping or Hurting Society?

In this episode of 22 George Street, we’re taking a fresh look at finance and asking a big question: Is finance helping or hurting society? With growing distrust in the financial system and populist movements on the rise, many people feel that finance only serves the wealthy. But is that the whole story? We explore how finance can actually empower people, from mobile money revolutionizing lives in Kenya to new opportunities in fintech and green finance. We’ll break it down in simple terms, showing how finance impacts everyday life—and how it can create a better future for all of us. Whether you’re curious about money, technology, or how finance fits into your life, this episode has something for everyone!

Transcript

Welcome to 22 George Street! I’m your host, George, and today we’re diving into a question that’s stirring up debates all over the world: Is finance hurting or helping society? You might have heard this framed as "The revenge of the middle class" or the rise of anti-finance elitism. But let’s break it down--what’s really going on here?

Let’s start with some numbers. According to a survey by the Financial Trust Index, nearly half of Americans--48%--believe that the U.S. financial system hurts the economy. Only 34% think it benefits it. These aren’t just fringe opinions either. Even 57% of Economist readers, who are usually pretty pro-finance, disagreed with the idea that financial innovation boosts economic growth.

But here’s the thing: this distrust isn’t new. It didn’t start with the 2007–2010 financial crisis. In fact, if we go back in history, finance has long been viewed as a shady business. As far back as the Old Testament, there were prohibitions against finance, and many still see it as a way for people to make money without contributing anything real to society.

And it’s not just in the West where finance is under the microscope. Over in China, the Communist Party has taken a harsh stance, ordering financiers to “smash financial elitism.” They’ve made it clear that any notions of superiority or exceptionalism in finance are a big no-go. Finance, in their eyes, is almost like a virus that has to be kept in check.

Now, you might be thinking: Is this just another case of ignorant populism? Are people misunderstanding how finance works? Maybe. But here’s why we shouldn’t dismiss this distrust so quickly.

Take Occupy Wall Street for example. Remember the “We are the 99%” slogan? People rallied against what they saw as a system designed to benefit only the wealthy elite. The anger was squarely aimed at the financial system. Was this just populist rhetoric?

Absolutely not.

Populism shapes how governments regulate finance. When enough people see the system as broken or unfair, they push for change. Whether we like it or not, public perception drives how finance is run and what it can do in the future.

But let’s not forget--finance isn’t all bad. In fact, it plays a massive role in helping people all over the world, especially those who don’t have access to traditional banks. Did you know that 1.7 billion adults globally still don’t have a bank account? That’s about one in four people!

Now, let’s take a look at a success story from Kenya. In 2007, a mobile phone-based service called M-PESA was launched. It lets people send and receive money, deposit and withdraw cash--all from their phones, no bank required. Today, 96% of Kenyan households use M-PESA, and nearly half of Kenya’s economy runs through mobile money. Amazing, right?

Why is this such a big deal? Well, people don’t use banks for a few reasons: they don’t have enough money, they live too far from a bank, or they simply don’t trust the system. Services like M-PESA make it easy, safe, and affordable for people to manage their money, even in remote areas.

And Kenya isn’t alone. As of a few years ago, two-thirds of all mobile money transactions globally were happening in sub-Saharan Africa--with more than $25 billion changing hands. Mobile banking is transforming lives in places where traditional banking just isn’t an option.

So what kind of real-life impact is mobile money having?

Let’s break it down:

Empowering Women

In Kenya, mobile money has helped 185,000 women leave farming and start their own businesses. It’s given them the financial independence to explore new opportunities and, in many cases, lifted them out of extreme poverty. That’s not just a win for them--it’s a win for gender equality too.

Creating a Safety Net

Mobile money also helps people handle life’s unexpected challenges. Researchers found that when mobile money users in Kenya lost part of their income due to a crisis, they didn’t have to cut back on spending. Why? Because they could get financial help from friends and family--sent right through their phones! Meanwhile, non-users had to reduce their spending by as much as 10%.

Saving Time and Money

It’s not just about convenience. In Niger, when the government started paying social benefits through mobile phones instead of cash, it saved recipients an average of 20 hours in travel and waiting time. Plus, the government cut the cost of running the program by 20%!

Boosting Investments

And in Malawi, farmers who received payments into mobile savings accounts spent 13% more on farming equipment and increased their crop values by 15%. This is game-changing for small-scale farmers.

Now, why is this all happening? It’s part of a global push to use fintech--that’s financial technology--to reach people who have been left out of traditional banking. Organizations like the United Nations are pushing for digital financial inclusion to help reduce poverty and close the income gap.

So why should this matter to you? Well, when more people have access to financial services, they can take control of their futures. Whether it’s saving for an emergency, starting a business, or sending their kids to school, finance gives people opportunities. And that benefits all of us.

Finally, let’s zoom out and look at the bigger picture. Finance isn’t just about making money or running banks. It’s about funding innovation--whether that’s electric cars, solar panels, or the latest app on your phone. Without access to finance, many of these things simply wouldn’t exist.

But finance is evolving, and if you’re thinking about a career in this field, there are some exciting opportunities ahead. Let’s look at a few:

Fintech – Have you ever paid for something with your phone? That’s fintech in action. It’s changing the way we bank, invest, and manage money. And you don’t need to be a tech genius to get involved--there are opportunities in customer service, marketing, and more.

Green Finance – If you care about the environment, green finance could be for you. This involves investing in projects that help protect the planet, like renewable energy. It’s a growing field with plenty of room for people who want to make a positive impact.

Impact Investing – Similar to green finance, impact investing focuses on funding businesses that create a positive social or environmental change--like affordable housing or clean water. It’s a rewarding career path if you want your work to have real meaning.

Financial Inclusion – Helping people who don’t have access to banks is called financial inclusion. There are projects worldwide--from mobile banking to microloans--creating opportunities for those who’ve been left out. If you want to make a real difference, this could be the field for you.

So there you have it. Finance is about much more than money--it’s about creating opportunities, helping people, and making the world a better place. If you’re considering a career in finance, the future is bright, whether you’re interested in technology, sustainability, or social impact.

Thanks for joining me on 22 George Street today. I hope this episode has given you a better understanding of how finance benefits society--and maybe sparked some ideas for your future. As always, I’d love to hear your thoughts. Until next time!