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Because money is power. And that wouldn't be a problem in itself. The real problem is that money does not look like power. For example, in a feudal system, where power is obvious, the rights and duties of lords and servants are clearly defined and the lords generally understand they have responsibility. That is not too bad. In a system where there is formally equality, yet money is still power, none of this is there, nobody defines the duties of the rich, this kind of power does not come with a clear sense of responsibility and so on.
Money works as power in multiple ways. Influencing politics is an obvious one, and although one good argument would be that politicians should not have too much power to sell to begin with, it is a moot one - since reducing government is in itself a political act, you can bet your ass that every time it gets reduced, it gets reduced in a way that it serves the interests of influential people. So true limited government you could only have through frequent revolutions, not by simply arguing and voting so that politics should limit itself - it will never happen in a way that is truly fair, it can only happen as a farce to serve vested interests.
Money is also power in different ways, and this is why I now consider the libertarian economics textbooks I tended to worship when I was 25 (Rothbard's Man, Economy and State etc.) way, way too naive. It is easy to see market exchange as an equitable transaction that makes both sides better off. But in reality often one party has the power. Adam Smith already saw it, when he wrote that a typical employee will need money right now, the typical employer can easily wait a month or two to employ a new worker, and thus the employer has the power in the bargain. The transaction itself still makes both parties better off, of course, the problem is not with the transaction, the problem is with the structural situation before the transaction. The problem is not that people exchange work for money, the problem is that most people own fuck all in the way of productive resources so they cannot possibly live any other way just others giving them a job. As a generalization, the market of consumer goods is equitable enough. The two huge exceptions are jobs and housing. Let a man have a fully paid house and a small business and he will feel free and equal enough, and consider all market exchanges fair and equal and mutually beneficial, but people who need a job to live and need to rent a flat from a landlord will never feel free. They feel like the employer and the landlord has power over them. This is why they pretty much never become libertarians. Libertarians are largely recruited from the self-employed and the home-owners. Any man who comes home from a job where the boss threatens him to fire if he does not work faster, and at home the landlords yells I did not allow you to keep a dog here, will not feel free, and will not think the government is the primary reason he does not feel free. If anything, he wants the government to balance out the transaction. So this is also how money is power.
I had enough libertarian sensibilities left in me to not simply jump from here to saying let's just throw a lot of government on the problem and that will surely solve it. Rather, I would prefer to reduce the demand for government by trying to have the kind of structures that lead to broadly equitable market outcomes. Clearly, a self-employed, family business market is more suitable for that than huge corporations. However there are significant issues with the implementation. The dilution of voting power is a real one, for example. As of now, I was unable to figure out a fully functional solution. I just know that if you want to reduce the demand for government, you basically need to live the "frontier life": nobody is a home renter and almost everybody is self-employed.
No, it's not. Money can be used to purchase power, if you know what your doing and have the right connections. But it itself isn't really power. That's why throughout history those with money frequently find themselves on the receiving end of power, at best they must pay off those with power, at worst they get killed, e.g., the Jews in Nazi Germany, the bourgeois and "kulaks" in Soviet Russia.