Your second, and most important premise, is key: "...but there only so much money out there..."
This is the crux of your belief system, which leads to your entire
argument and which makes it entirely wrong. No, there is NOT a finite,
set amount of money "out there!"
The two most basic ways to believe about money are:
- The zero-sum "pie" --- If someone makes money, someone else loses money
- Money symbolizes effort --- If someone creates something, society adds more money to the "pie" to account for it.
For half a century, clever professors have taught the majority of young
school students that there is only a certain amount of money in the
world. The task of each adult is to figure out a way to get some of
"Giving back to the community" is a way to fool people into believing
that if one person makes money, another person must lose money.
The entire theory demonstrates a total lack of comprehension about the
nature of money, the nature of trade, the nature of work, the nature of
economics, and the nature of business.
Let`s say a family decides to improve their lives by opening a cleaning
business. Before they made that decision, many other people had to
spend part of their time doing their own cleaning.
Along comes a new group of people (born and grown to adults by
population increases). Those people offer to clean other people`s homes
To account for this new effort of work taking place, someone must
introduce a valuable "thing" that can be exchanged. In a barter
economy, one person would offer sandwiches to the people doing the
But in a modern society, the person needing the cleaning would offer
money of some kind. It might be gold coin, silver coin, copper coin.
But it might also be paper contracts provided by a bank or a government
As soon as the family comes up with their new idea and begins selling
the cleaning to those who want to buy it, the banks and government must
introduce additional money in order to account for the new effort.
In other words, people are born, they grow up, they introduce more work
and effort into an economy. To make room for that new effort, new money
comes into the monetary system.
To look at it your way, if a family decides to get into the cleaning
business, then someone else MUST go out of business! In a fair market,
another cleaning business would go out of business to make room for the
In your view, in a less fair market, then a liquor store would have to
go out of business, or a neighborhood drug store, or small restaurant.
One way or another, a business would have to go out of business to make
room for the new cleaning business.
To make it even "more fair," a better way (under your view of things)
would be that each of the small businesses in the area surrounding the
new cleaning business would have to "give up" some of their money. That
would "allow" for some money to now flow into the cleaning business.
That`s simply wrong. It doesn`t work that way excepting when an outside
"force" makes it happen. Socialism and/or communism is such an outside
force. Capitalism simply creates new money to match the creative
efforts of the new business---the new product or work.