Why the goverment of a country wouldn’t just make more money to make the country rich?
In: Economics
Think of money as a unit of labor. You work, you get paid. Rich people leverage other people’s labor; there is a limit to how much labor you can do at a given wage.
If a government prints more money without more labor being added in, it just means everyone is getting a raise, including our landlord and the retailers that have to raise prices in order to cover increased wages.
To reduce inequality without increased productivity from labor, there would need to be a restructuring of wages and owner profits. To make everyone more rich, there would need to be an increase in technology and innovation (imagine if robots did all the work, even to the point of building new robots). Technology is the reason the average person in the west is richer in the 21st century than a king in the Middle Ages.
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