I am having trouble understanding your comment. Farmers and bakers easily produce more food than they need to stay alive themselves.
When people start a business they must borrow money and usually pay interest. That interest forces you to be profitable, you can't just run your company at 0% profit as that would only pay for your salary and the salary of your employees and the materials and machines you bought.
It is impossible for every company to be simultaneously be profitable. After all, if there is a million dollars in the economy, you can't have a 5% profit and reinvest the money as that would require a money supply of 1.05 million dollars. Thus, the money supply must grow endlessly and if the economy can't keep, there must be inflation.
I am one person out of 7 billion. I need to provide for myself, everything I pay must cover the costs of all the costs of those people I bought from. When people buy my labour they must cover my costs of providing for everyone else.
My work and the work those people are doing needs to pay all those costs. We effectively pay eachother to work at what we are independently good at - trade.
But a worker only receives revenue from the work they do (I'm excluding unearned income)
If everyone gets everything they need ultimately from other people, and each of those people needs to get everything they need from everyone else - and sometimes the same people.
Where does the salary of the workers I buy things from come from?
I feel intuitively it doesn't matter how much bread someone can create, the total revenues from selling bread in general needs to cover the costs of all their employees and the business costs themselves.
But this process repeats for all transactions the total transactions for MasterCard pays the bills that MasterCard employees have.
Everyone needs to earn more than they cost but so does everyone else! How can this not inflate endlessly over time?
When I look at government deficit and debt levels of the world, people don't produce more than they cost and relative and absolute poverty.
What's the proportions of owners of wealth? Compare the bottom 99% with the top 1%.
Bank loans create new money by increasing bank deposits, which is then destroyed when the principal is repaid, leaving behind the interest on the loan. So it is theoretically possible for every company to borrow money at once.
When people start a business they must borrow money and usually pay interest. That interest forces you to be profitable, you can't just run your company at 0% profit as that would only pay for your salary and the salary of your employees and the materials and machines you bought.
It is impossible for every company to be simultaneously be profitable. After all, if there is a million dollars in the economy, you can't have a 5% profit and reinvest the money as that would require a money supply of 1.05 million dollars. Thus, the money supply must grow endlessly and if the economy can't keep, there must be inflation.