Part 3/11:
Most people focus on how much money they personally have, but equally important is the total amount of money available in the system. This broader number directly influences purchasing power—the amount of goods and services a dollar can buy at a given time.
For example:
If you have $100 and there are $1,000 in total in the system, your portion, or share of purchasing power, is 10%.
If that total increases to $2,000, your share drops to 5%, meaning prices tend to rise because the overall amount of money in the system has grown.