Money vs Wealth

Oh that ain't workin'
That's the way you do it
Get your money for nothing
And your chicks for free
--Dire Straits

Classic missive from Mr P reminds us that money does not create wealth. Only production creates wealth.

Money is, instead, claims on production. When central banks print money, they create claims on production. Typically, those claims fall into the hands of the unproductive. Recipients of printed money use those claims to lift production from others.

Money printing, then, is the process of wealth transfer.