ABSTRACT
In the earlier part of this book I discussed the rise in prices, and showed that it was an inevitable result of the increased money income in the hands of the public. This increased income was itself caused by the Government’s distribution of hundreds of millions which it had borrowed or had created by inflation. We saw, accordingly, that people might have much more money than they had a year earlier and yet L>e no better off. There was, it is true, a more equal distribution of income, because the borrowed money was spent mainly in wages, but the country as a whole was no richer. Is it not conceivable that there may be a converse of
this proposition, i.e. that the country as a whole may have less money income and yet be no poorer ?
