Let’s ask ourselves: why would this make anyone optimistic? Let’s say that you are playing the game Monopoly and one player proposes to double the money stock for everyone. The problem would be obvious to everyone. If the prices on the board could change, they would double. Since they can’t, the game will only last twice as long as before. Meanwhile, players would become more reckless with their investments in houses and hotels. It wouldn’t really make the players more wealthy; it would only create an illusion that would be temporary.
The analogy isn’t exact, but the point should be clear. Paper money is not the same thing as wealth. Wealth comes from trade, investment, and capital accumulation. Money is merely a tool that facilitates the creation of wealth; it is not identical to it.
The essence of an advanced course in Economics. If Americans ever re learned that one fact, then the pundits, politicians, komisars, and bureaucrats would be all “out of business”. They couldn’t scam us any more.
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