Fractional reserve banking causes poverty

Fractional reserve banking is a leading cause of poverty because it affects everyone. Everyone values money and cannot live without it... people will sell food to get money even if they are on the verge of starvation so we know that money is important in the context of poverty. Fractional reserve banking causes poverty because it enables the banking institutions to increase the money supply. Because of this they can effectively print money which means that everyone else has relatively less money. The financial institutions would not be able to practice fractional reserve banking without deposit insurance because there would be a bank run. The only purpose of deposit insurance is to prevent a bank run so we can deduce that in a free market there would be no fractional reserve banking. The term 'fractional reserve banking' in itself is a misnomer because if the money has been loaned out then the institution is not acting as a bank... it is acting as an intermediary between lenders and borrowers.