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| Posted: Thu Jul 25th, 2013 04:25 pm |
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bear
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7/25/13 Page 127 More power (more wealth) = lower prices of power (wealth) and more things to buy with the same money means less money required to get one of the many things. Lower prices of wealth and the same amount of money to buy that wealth, and each dollar can then buy more wealth, since the price of wealth goes down. Same amount of total money in use, more stuff to buy = more purchasing power per unit of money: Where 1 dollar could only buy 1 thing; now there are 2 things at lower prices, so 1 dollar now buys 2 things. Modified: More power (more wealth) = lower prices of power (wealth). In other words: more things to buy with the same money means less money required to get one of the many things. In other words: lower prices of wealth with the same amount of money to buy that wealth means that each dollar can buy more wealth, since the price of wealth goes down. In other words: the same amount of total money in use and more stuff to buy means more purchasing power per unit of money. In other words: where one dollar could only buy one thing; now there are two things available at lower prices, so one dollar can now buy two things.
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