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No, I disagree. The money represents the real output of the economy. This can be moved around to some degree (switch a bicycle factory to making surgical tools,
by iguy 8y ago
No, I disagree. The money represents the real output of the economy. This can be moved around to some degree (switch a bicycle factory to making surgical tools, etc) but fundamentally only so much stuff is produced. Printing more money doesn't change this.
Economic growth does, but not overnight. And figuring out how to do equivalent things with less input (whether it's model-Ts, or surgery) is an important part of that.
To take an extreme example, every space-X launch costs $50 million. If I say that America could not afford to give everyone an orbital holiday, this is not a statement about fiat dollars. It's a statement about the enormous resources, and chiefly the labor of an enormous team of people (including all the suppliers, and their suppliers) required for each such trip.