Imagine you're on an island with $100 split among five people and five goats, each goat is worth $20. But one guy has 2 of the goats and he breeds them until there's 50 goats. So now each goat is worth ~$2. So if the others had done nothing, they could still buy a couple more goats. So if you measure wealth by purchasing power it can increase for everyone.
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Imagine you're on an island with $100 split among five people and five goats, each goat is worth $20. But one guy has 2 of the goats and he breeds them until there's 50 goats. So now each goat is worth ~$2. So if the others had done nothing, they could still buy a couple more goats. So if you measure wealth by purchasing power it can increase for everyone.