Everyone wants more than they have. Labor wants to be paid more this year than last, producers want to get paid more this year than last. In the money treadmill of the economy, that means everyone raises prices to pay for the rising prices.
It comes from excess production or profits. Labor creates more value than it gets paid; businesses charge more than their products cost; banks loan more money than they hold. There’s just extra money floating around competing to buy finite resources. The extra money accumulates over time, which makes money itself less valuable.
Everyone wants more than they have. Labor wants to be paid more this year than last, producers want to get paid more this year than last. In the money treadmill of the economy, that means everyone raises prices to pay for the rising prices.
It comes from excess production or profits. Labor creates more value than it gets paid; businesses charge more than their products cost; banks loan more money than they hold. There’s just extra money floating around competing to buy finite resources. The extra money accumulates over time, which makes money itself less valuable.