The world did fine before derivatives. In fact some might say it did even better. And gambling only makes the wealth gap worse. And there is a ton of nasty incentives linked to it.

> world did fine before derivatives

The Hittites and Bronze-Age Egyptians had forward-deliverable contracts that, if you squint, they would trade amongst each other. The idea of being able to assign a contract to a third party to which you're a beneficiary is about as old as civilisation. In part because it's obvious. In part because it's impossible to police. But mostly because it's useful.

(I'm ignoring insurance and reinsurance, both of which are derivatives and rely heavily upon them.)

Nonsense. Derivatives have been actively traded in the USA at least since 1848 (and even earlier in other countries). Nothing was better about the world in 1847.