Speaking of Precision

Law of Diminishing returns can be applied to any activity. Farming is a case in point. If a farmer cultivates a field his yield will increase significantly. If he does it a second time it will also increase his yield, but by a lesser amount. Each time the process is repeated, the results will decrease until there is no net gain. As for our economy, the presses have been running overtime for a very long time, some may even claim 3/4 century or so. At some point in time, no matter how much they print, there will be no increase in the standard of living. Some will argue, we reached that point a decade ago.

Sounds alot like dating to me.....

You have a Bond. It matures in a set amount of years.

Each year the value of your bond grows of an equal amount till maturity, however percentage wise, the ratio of money contributed to the growth of that bond gets smaller and smaller compared to the current value of that bond each time it is compounded.

When more and more money chases the same amount of goods, the real wealth does not change. Only the printed money. And everything is devalued in present dollars. Recalculated into constant dollars it might look better, but that does not help, as we live in present dollars.

This is true if you borrow to invest in growth. We didn't, we used the proceeds to replace government income lost to the Bush tax cuts and to fund two wretched wars.

I wish it meant that my taxes got less and less every year....