[GGG]

Originally Posted by Enoch Root

Actually, the opposite is largely true. Additional wealth, in the hands of the poor and the middle class, results in additional spending, or as you described it: more money chasing around goods & services.

Wealth, in the hands of the rich, does not generate spending, it generates investment. We can debate whether this is a net benefit or a net hindrance to the economy, but what it doesn't do is push up the prices of goods and services.

What you may be trying to get at is that more economic activity results in more inflation. This is true, but inflation is well known as the enemy it is, and central banks are very diligent towards keeping it in check.

Yes, if we slowed the economy down, there would be less inflation, but I very much doubt that slowing the economy down would benefit the poor.

The only explanation for why money printing the last 20 years hasn’t led to massive inflation is that our assets have increased in cost. I think the paper value of companies and houses is preventing inflation because it locks up money and matches productivity to purchasing power.