Quote:
Originally Posted by quido
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U dum or sumtin??
When we take raw materials like stone and iron and fossil fuels and manpower and turn them into something more valuable than the combined constituent components, such as a factory that manufactures automobiles, new wealth is created. This is not the same as an increase in currency, ya moran.
This combats inflation by increasing the buying power of the dollar. In an EQ analogy, it'd be like me farming 200 fungis and selling them without a comparable increase in plat in the market. The price of each fungi goes down, and the buying power of each plat goes up. This works against currency inflation.
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Thats new product, not new wealth. This countries wealth doesnt even exist anymore when you look at it. Our dollar has no counterpart anymore. Used to be able to take a dollar into a bank, and get a dollars worth of gold. Cant do that anymore since the dollar's value is simply based on whatever the man behind the curtain says its worth and has been removed from gold completely.