When did an increase in the money supply equate to an increase in wealth? I assume by wealth we are referring to GDP. Increased federal borrowing in the long run, is not an efficient way to grow GDP. The private sector does a much better job with borrowed funds.
Mr. Stark is incorrectly using the term “wealth”. The true measure of wealth includes many factors, but in this case he is referring to the relationship between the money supply and the debt created to allow us to have a currency. Increasing this debt by definition means we had to have increased the money supply, hence more “wealth”.
It’s smoke and mirrors that the interviewer fails to capitalize on and therefore misses a great opportunity to catch Mr. Stark with his own trap.