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"If I make more money there is not someone else losing." Actually, that's exactly how it works: we can't both own the same dollar. Duh.
by iheartpotatoes 7y ago
"If I make more money there is not someone else losing."
Actually, that's exactly how it works: we can't both own the same dollar. Duh.
- SubiculumCode 7y agoNo. But if both persons are productive then the Fed is more likely to inject another dollar or two into circulation.
- ryandrake 7y agoWhen the money supply increases, the pie isn't growing: There are just more, smaller slices available.
- SubiculumCode 7y agoNope. I'm pretty sure the world is more wealthy by almost every economic measure than it was two centuries ago.
- antonvs 7y agoThat's not how it works at all. The point of growing the money supply is to match the growth of wealth in the society. The reason central banks have target levels for inflation is it's one way to ensure they're doing that correctly.
- ls612 7y agoYet somehow there are more (real) dollars worth of stuff in the economy today than 20, 50, or 100 years ago.
- deburo 7y agoExchanging a dollar for a product means that I value the product more than the dollar. I didn't lose in this trade. Now, if I think the product is overpriced, in the current market I'd wait for it or a competitor's product to lower its price since prices tend to vary overtime. If the product comes from a monopoly, then you're doomed. Anyhow, the zero-sum game does not apply to the free market.
- csa 7y ago> Actually, that's exactly how it works: we can't both own the same dollar. Duh. I’m guessing you’ve never taken an economics course. Or if you have, you didn’t understand it. “Making the pie bigger” (growth) is a thing, and it’s a thing that happens quite frequently. “Getting a bigger share of the same size pie” (zero sum) leaves a lot of opportunity on the table.
- deleted 7y ago[deleted]