Comment: That assumes

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That assumes

That productivity of goods and resources keeps up with demand. With increase in population, and productivity, resources to produce with (oil iron, etc.) become scarce, since production of resources is limited by availability. Labor becomes plentiful, and so wages fall.

The ability to explore and produce new resources is limited because the tight money supply makes borrowing for investment ( in a new oil well for instance) very expensive, so the only investments made will be the extremely low risk investments.