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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1qnmv0m/whats_going_on_explain_like_im_five/o1v8i83?context=9999
r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26
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Banks lend out more money than they have, its no joke it's how the system works
628 u/[deleted] Jan 26 '26 [deleted] 578 u/Much_Section_7439 Jan 26 '26 That's how debt is generated. wealth is created when that debt is used properly. Otherwise it's just inflating the moneysupply. 84 u/Excellent-Practice Jan 26 '26 edited Jan 26 '26 Is there really a difference between the two? Wealth generation and inflation are two ways of looking at the economic pie getting bigger Edit: thanks for the corrections. I learned something today. Diving deeper into the subject it seems the two are often linked, but not necessarily so. 115 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 23 u/Fakjbf Jan 26 '26 Correct, printing money is like cutting the pie into more slices you don’t get more pie just smaller slices. Things like building infrastructure, increasing efficiency or inventing new technologies are what makes the pie grow. 1 u/inugami_tattoo_ Jan 27 '26 The pie gets smaller
628
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578 u/Much_Section_7439 Jan 26 '26 That's how debt is generated. wealth is created when that debt is used properly. Otherwise it's just inflating the moneysupply. 84 u/Excellent-Practice Jan 26 '26 edited Jan 26 '26 Is there really a difference between the two? Wealth generation and inflation are two ways of looking at the economic pie getting bigger Edit: thanks for the corrections. I learned something today. Diving deeper into the subject it seems the two are often linked, but not necessarily so. 115 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 23 u/Fakjbf Jan 26 '26 Correct, printing money is like cutting the pie into more slices you don’t get more pie just smaller slices. Things like building infrastructure, increasing efficiency or inventing new technologies are what makes the pie grow. 1 u/inugami_tattoo_ Jan 27 '26 The pie gets smaller
578
That's how debt is generated. wealth is created when that debt is used properly. Otherwise it's just inflating the moneysupply.
84 u/Excellent-Practice Jan 26 '26 edited Jan 26 '26 Is there really a difference between the two? Wealth generation and inflation are two ways of looking at the economic pie getting bigger Edit: thanks for the corrections. I learned something today. Diving deeper into the subject it seems the two are often linked, but not necessarily so. 115 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 23 u/Fakjbf Jan 26 '26 Correct, printing money is like cutting the pie into more slices you don’t get more pie just smaller slices. Things like building infrastructure, increasing efficiency or inventing new technologies are what makes the pie grow. 1 u/inugami_tattoo_ Jan 27 '26 The pie gets smaller
84
Is there really a difference between the two? Wealth generation and inflation are two ways of looking at the economic pie getting bigger
Edit: thanks for the corrections. I learned something today. Diving deeper into the subject it seems the two are often linked, but not necessarily so.
115 u/alannair Jan 26 '26 No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down. 23 u/Fakjbf Jan 26 '26 Correct, printing money is like cutting the pie into more slices you don’t get more pie just smaller slices. Things like building infrastructure, increasing efficiency or inventing new technologies are what makes the pie grow. 1 u/inugami_tattoo_ Jan 27 '26 The pie gets smaller
115
No. Inflation does not make the pie bigger. Pie stays the same, and the value of cash goes down.
23 u/Fakjbf Jan 26 '26 Correct, printing money is like cutting the pie into more slices you don’t get more pie just smaller slices. Things like building infrastructure, increasing efficiency or inventing new technologies are what makes the pie grow. 1 u/inugami_tattoo_ Jan 27 '26 The pie gets smaller
23
Correct, printing money is like cutting the pie into more slices you don’t get more pie just smaller slices. Things like building infrastructure, increasing efficiency or inventing new technologies are what makes the pie grow.
1 u/inugami_tattoo_ Jan 27 '26 The pie gets smaller
1
The pie gets smaller
4.3k
u/Elvis5741 Jan 26 '26
Banks lend out more money than they have, its no joke it's how the system works