And then what will the yacht company do with all of the money?
> it might even drive down prices of certain goods. More demand => economies of scale => lower prices => more demand => ...
That's not consistent with economic theory. Economies of scale don't work "forever". At some point, the per-unit price will start to rise with quantity again.
Employ people. Reinvest. Raise wages. Expand to new markets. Throw better Christmas parties. Buy the CEO another yacht. You know, run their business.
> That's not consistent with economic theory. Economies of scale don't work "forever". At some point, the per-unit price will start to rise with quantity again.
You mean we won't get $10 yacht?! ;-)
Anyways, that part of my original pose was supposed to be tounge-in-cheek. The point is, I don't think bidding up the prices of real estate in a few super-upper-class retirement snowbird communities is the end of the world. Yes, inflation will happen. But only in certain asset classes that I don't care much about.