They teach money creation in Freshman Macroeconomics. It’s actually a good thing, at least in controlled moderation. (I can hear the GoldBugs gasping now).
Banks are required to keep a certain percentage of their net deposits in liquid cash. This limits the ultimate potential of money creation. It’s based off these numbers that the government creates money.
Ultimately, money is a reflection of wealth, and money creation has nothing to do with creating wealth. Still, end of the day all it really does is modify the denomenator of the equation.
