Richard G. Lipsey wrote: "if paid workers work more, earning more income   
which they spend, this will add to inflationary pressure."  
  
I don't understand this.  If inflation is the rate of growth of the   
price level (weighted average of all prices), why does the spending of   
more income earned from producing more constitute "an inflationary   
pressure"?  
  
Perhaps I have been confused by J.S. Mill's eloquent explanation that   
"What constitutes the means of payment for commodities is simply   
commodities.  Each person's means of paying for the productions of other   
people consist of those which he himself possesses.  All sellers are   
inevitably, and by the meaning of the word, buyers.  Could we suddenly   
double the productive powers of the country, we should double the supply   
of commodities in every market; but we should, by the same stroke,   
double the purchasing power.  Everybody would bring a double demand as   
well as supply; everybody would be able to buy twice as much, because   
everybody would have twice as much to offer in exchange."  The price   
level does not rise (or the value of money fall) in this explanation.  
  
James Ahiakpor