> "If the increase of hard money comes from gold and silver mines within the state, the owner of these mines, the entrepreneurs and smelters, refiners, and all the other workers will increase their expenses in proportion to their profits. Their households will consume more meat, wine, or beer than before. They will become accustomed to wearing better clothes, having finer linens, and having more ornate houses and other desirable goods. Consequently, they will give employment to several artisans who did not have that much work before and who, for the same reason, will increase their expenditures. All this increased expenditures on meat, wine, wool etc., necessarily reduces the share of the other inhabitants in the state who did not participate at first in the wealth of those mines in question. The bargaining process of the market, with the demand for meat, wine, wool etc., being stronger than usual, will not fail to raise the prices. These high prices will encourage farmers to employ more land to produce the following year, and these same farmers will profit from the increased prices and will increase their expenditure on their families like the others. Those who will suffer from these higher prices and increased consumption will be, first of all, property owners, during the term of their leases, and then domestic servants and all the workmen or fixed wage earners who support their families on a salary. They must all diminish their expenditures in proportion to the new consumption..."
There is some time for these market effects to occur, so the purchasing power decrease of workers is not seen for some time after the new money is printed. The initial spenders of the new money have purchasing power at the value the money had at the time the new money was created. This is the fed, the government, banks, and financial markets. By the time it trickles down the economy, price rises begin to occur and the bottom earners have reduced purchasing power.
The idea of continuous money printing by the state, even during times of prosperity is Keynes's gift that keeps giving. The state and its elite benefit from increasing the money supply and low earners and savers pay the costs. The fed committing to printing trillions now is simply a way for them to enrich themselves with a convenient excuse which can deflect blame for any economic damage caused - the Coronavirus. This can be seen by comparing what is being printed, and what meagre percentage of it is actually going to the average American in their stimulus checks, versus what is going to banks, big business and others, paid for by future taxpayers. Daylight robbery, which will only further increase wealth inequality.
[1]:https://mises.org/library/essay-economic-theory-0 (part 2, chapter 6)