Say I buy a 2 dollar bottle of Coke from a grocery store. I go up to the cashier, I give them the money, they put it in the till, and I walk away. I have given money to the store, who presumably will then use that 2 dollars to fill out their employees paychecks, pay for things in the store like water, electricity, heating, janitorial staff for cleaning, etc, etc.
After all of that, how will Coke ever see my 2 dollars? It would seem to be that the money would have diluted beyond all recognition by that point.
In: Economics
Where do you think the store got the bottle of Coke from in the first place? The store already bought the bottle of Coke. The store sells it to you for more than they paid for it, which pays them back and earns them a profit. They they use that money to buy more bottle of Coke to sell to make more money.
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