So the proper growth of the money supply is zero? Forever?
If everyones' money strengthens and buys more goods from the farmer, the grocer, and the manufacturer how would one sector suffer over the others?
Would Americans be hurt if their houses dropped 3% in value every year? How about GM, would they be stronger or weaker if they had to drop prices 3% every year? Would they expand or reduce their production? Would they hire more or fewer workers? Would people delay purchases if they knew prices would drop next year? Might that cause the economy to slow down?
It expanded every year but 1930.
How much did it shrink in 1930?