Comment Re:Three possibilities (Score 1) 267
This is fundamentally incorrect on many levels. First of all, the money supply affects inflation; it does not create wealth. If that were true, you could create wealth by printing money. Wealth of the kind you are talking about relates to the capital stock, which does increase over time as raw resources are converted into durable capital goods. Anyhow, it's monumentally obvious that wealth/capital can increase and decrease over time, and is not a fixed pie. Otherwise, how do you explain the fact that GDP, stock market value, and the quantity of housing stock have all increased over time? Economics is a positive-sum game, not a zero-sum game.