On Friday 05 December 2008 10:58:33 am Von Fugal wrote: > > However, you're forgetting, that with a static currency supply, the per > > capita purchasing power has now decreased inversely proportional to the > > increase in capita. > > The money supply per capita has decreased, but not the purchasing power. > Because rememeber, there's increased supply, so the purchasing power of > a given amount of money goes UP, that means I actually need less money, > hence it's just fine that new producers are absorbing some of the money > supply. Just look, they are aqcuiring that money fairly by supplying > something in return! > > > Now what have we got? We've just lowered the demand--the demand curve > > shifts to the left, lowering both the price, > > Yes, the price lowers. > > > and the number of goods exchanged > > No, the demand is still the same.
No. Number of goods exchanged is just like price--determined by the supply and demand curves. The number of goods exchanged may increase, but if the increase in demand is less than the increase in supply, that means that the number of goods exchanged _per capita_ has decreased--thus per capita they are less wealthy. /* PLUG: http://plug.org, #utah on irc.freenode.net Unsubscribe: http://plug.org/mailman/options/plug Don't fear the penguin. */
