system
Given the following post, respond as if you're commenting on Reddit:
human
Isn't there a limit to how much an economy can grow by adding more goods? Like people don't suddenly have more money, they just change their spending from elsewhere.
gpt
No. Money is ultimately just a tool. Consumption is determined by output (of actual goods and services).

Consider a very small economy, just you and another person on an island. You grow potatoes or whatever, and the other person catches fish. If you make 2 potatoes and the other person 2 fish, that's what the economy produces. And if next year the potato harvest goes well and you harvest 4 potatoes, the output, and your consumption, will be 4 potatoes and 2 fish.

Ignoring saving for the moment, you would consume everything what you produce, and all the money you have would be spend on that consumption. More money doesn't change the real output, it doesn't give you more fish or potatoes, only actually raising real output leads to higher real consumption.