The GDP (gross domestic product) of any country during any year is the total amount of all products. This includes all cars, boats, houses, airplanes, missiles etc. Assume that this GDP is equivalent to a pot of gold. Similarly, assume that the total money of that country in that year is equivalent to a bag of dollar bills.

This bag of dollar bills has an one to one relationship with that pot of gold. They are tied together. None of them can grow independently, according to the LOC (law of conservation). Manipulation of the bag of dollar bills will violate the LOC.

Now, the CB (central bank) can print another bag of free money without any restrictions. These two bags of dollar bills will be then equivalent to that one pot of gold. Thus the price of gold has doubled now, creating inflation. The printing of extra bag of money violated the LOC; the money has grown, but the gold did not.

The CB can also give this free money to anyone it likes, without any restrictions. If this money goes equally to all the people in your country, this will not cause any problem. However, if the CB gives it only to the top one percent of the population, then we have a severe problem. The top one percent acquired the fifty percent share of the gold.  The process violated the LOC; it transferred your gold using free money. The gold that you had vanished from the pot.

Just like CB can print free money and give it to anyone it wants, it can similarly stop giving you the money also by making you unemployed. Thus reducing your share of gold to zero, violating the LOC. Your home will be foreclosed, and another rich person will confiscate it.

Observe that, profiting and interest charging violate the LOC in the same way.

Thus printing free money and allocating it to a specific group helps to create poverty by violating the LOC. Note that the remaining 99% of the population has suffered for many reasons (a) the price of gold has increased (b) their purchasing power has reduced (c) the available share of gold has reduced. The resource has become scarce, artificially.

In MLE we eliminate the root cause, the problem the free money creates. We can then run the same economy without violating the LOC.

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