ELI5: Explain Like I'm 5

Finance capitalism

Finance capitalism is when people with lots of money use that money to make even more money. Think of it like playing pretend store with your friends. If you have a lot of toy money and you use it to lend to your friends, they can use that money to buy toys and they will have to pay you back with extra money, called interest. This means that you will make even more toy money without having to do any work.

In real life, finance capitalists use their money to invest in companies, stocks, and other things that they think will make them even more money. They might also give loans to businesses or individuals who need money to start or grow their own companies. When the borrower pays the loan back, they also have to pay interest, which is how the finance capitalist makes a profit.

Sometimes, finance capitalists can become too focused on making money and not care about the impact they are having on the people or the environment around them. This can lead to things like inequality, where some people have lots of money and others have very little, and environmental damage, where the planet is hurt by the actions of businesses.

Overall, finance capitalism is a way for people with money to make even more money by investing in different things. However, it is important to think about the consequences of these actions and make sure that everyone is being treated fairly and the planet is being protected.