How does our economic system work?

George Carlin is always worth watching:



"... From the moment when the machine first made its appearance it was clear to all thinking people that the need for human drudgery, and therefore to a great extent for human inequality, had disappeared. If the machine were used deliberately for that end, hunger, overwork, dirt, illiteracy and disease could be eliminated within a few generations. ... But it was also clear that an all-round increase in wealth threatened the destruction - indeed, in some sense was the destruction - of a hierarchical society. ... the most obvious and perhaps the most important form of inequality would... already have disappeared. If it once became general, wealth would confer no distinction. ... But in practice such a society could not long remain stable. For if leisure and security were enjoyed by all alike, the great mass of human beings who are normally stupefied by poverty would become literate and would learn to think for themselves; and when once they had done this, they would sooner or later realise that the privileged minority had no function, and they would sweep it away. In the long run, a hierarchical society was only possible on a basis of poverty and ignorance. ... Ignorance is Strength ..." -- George Orwell, ("1984")

“No longer enslaved or made dependent by force of law, the great majority are so by force of poverty; they are still chained to a place, to an occupation, and to conformity with the will of an employer, and debarred, by the accident of birth both from the enjoyments, and from the mental and moral advantages, which others inherit without exertion and independently of desert. That this is an evil equal to almost any of those against which mankind have hitherto struggled, the poor are not wrong in believing. Is it a necessary evil? They are told so by, those who do not feel it---by those who have gained the prizes in the lottery of life. But it was also said that slavery, that despotism, that all the privileges of oligarchy, were necessary.” ― John Stuart Mill, On Socialism