printing money and donating it to the people would cause inflation but it’s still good.
here’s why:
company A owns $3k, while people B, C, D have $1k each.
now let’s give another $1k to B, C, D. now there’s more money in circulation, name $9k in total instead of $6k. So the dollar is only worth 66% as much as it was before. Let’s calculate wealth of each participant in terms of previous value:
company A: $3k * 0.66 = $2k
person B, C, D: $2k each * 0.66 = $1.33k
so people have more wealth than before (at the expense of companies)
printing money and donating it to the people would cause inflation but it’s still good.
here’s why:
company A owns $3k, while people B, C, D have $1k each.
now let’s give another $1k to B, C, D. now there’s more money in circulation, name $9k in total instead of $6k. So the dollar is only worth 66% as much as it was before. Let’s calculate wealth of each participant in terms of previous value:
so people have more wealth than before (at the expense of companies)