This might seem like a really simple question, but I am really troubled by it on a macro scale. The money has to come from somewhere. Someone might start up a business that creates things or takes things from the Earth. You could say this is "creating" money, but I argue it isn't, or I am missing something.
Here is how I see it. In order for that company to work, they have to make a profit which means they have to take more money than they are giving. This is the way all companies work. In the end logically, this money becomes concentrated in a few people. If this is the case, on the broadest level, how is it that standards of living increase? Isn't it inevitable that the rich get richer and the poor get poorer, with money being concentrated in fewer and fewer people over time? And if that is the case, won't capitalism eventually fall apart, with fewer and fewer people being able to purchase goods? If not, how is this corrected? Is there a way the rich can get richer with the poor also getting richer (which means money is magically coming out of thin air)? (The buying power of the poor becomes less as the amount of money they possess lessens; the opposite being true of the rich) (Poor = possessing small monetary volume; rich = large monetary volume)
I also have a similar question with trade deficits. How is it the United States can still grow, despite sending more money out than it takes in? Perhaps the answer to this question will solve the one above.