At 14:18 08/09/2016 +0100, Martin Bland wrote:
>If the total amount of money is t and I own money x, I own x/t of the
>wealth. If the government prints more, y, I now own x/(t + y), which is a
>smaller fraction of the total wealth. The total wealth is unchanged, so I
>am poorer.
I suppose that is true of pre-existing money which you own (i.e.
savings). However, in terms of the ongoing situation, your income would
(all other things being equal) increase by a factor of (t+y)/t, so your
ongoing income per unit time would remain the same fraction of the total
wealth as it always was. If income per unit time was i before the change,
then, prior to the change:
Income per unit time as fraction of total amount of money = i / t
... and, after the change
Income per unit time as fraction of total amount of money = [(t + y) / t
]i / (t+y) = i/t
Kind Regards,
John
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