http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/01/24/BAE4UKM70.DTL&hw=yul&sn=001&sc=1000
If anyone tries to open a restaurant in my town
2k aweek is definately not going to happen.
but this is north beach he shouldn`t of gone there
nobody goes to north beach
The issue is that the profit is made through a loss in another part of the sector. A restaurant elsewhere is going to lose business and the system as a percentage will remain relatively (though never perfectly stable). That's the point of competetion anyway. If the pie were infinite, as Sirs and Rich claim, then businesses would succeed at incredible rates and money supply would have no effect on other economic factors.
Of course that is not the case (nor can it possibly ever be the case). There can only be so many green bean farmers before some aspect of green bean production is saturated and the notion of "infinite wealth" becomes ludicrous. There can only be so many wine-makers and vineyard owners.
The market itself corrects for these issues through some simple mechanism (supply and demand) and through some very complex mechanisms (hyperinflation, stagnation).
So, for example, one could simply borrow heavily against lenders at low interest rates - but as we've seen with the subprime lenders and the housing market collapse, which involves a lot of negative equity - such things don't prove the "infinite pie" or "infinite wealth" notion any more correct.
It is a myth. One for candidates with a population that has little understanding of economics, but is easily swayed by political one-liners.