If I make a profit here, does someone else, somewhere, make a loss?
I just had this question in mind, and I thought I'd put it up for discussion.
Suppose you have a company that makes a profit of x rupees. That more or less means, it started of with, say, 100/-, and ended up with 100+x /-. Now, if the total amount of money in this world (which, I believe, is printed based on the gold reserves of a nation), is constant, then every company in this world cannot make a profit, right? (As that would mean generation of x/y/etc rupees at every point, which would keep adding up indefinitely!)
Plus, if I make a profit, that means I sell something more than what it's worth, so someone is buying it at more than what its worth, so he, in a way, is making a loss? (Though this approach might be shaky).
So it only makes sense that if the net money reserves in the world is constant, the total losses and the profits must be equal?
Am I going wrong somewhere?