How is it not real wealth if your wages increase faster than prices?
Economics is not a morality play. If people want to save and be protected from inflation, they can buy inflation protected bonds. There's a premium on those bonds for exactly that reason.
Prices doesn't just happen by magic when the fed increases the money supply. Business owners base their prices on supply and demand, not graphs from the Fed. If demand goes up, they raise their prices. The idea behind expanding the money supply is it makes it easier for banks to lend, which gets the economy growing when people use those loans to start businesses, or buy houses, cars, etc. The problem right now is it doesn't matter how easy it is to lend because there's no demand, so there's no incentive for anyone to get a loan to expand their business. Why expand when your sales can't even use all of the capacity you already have? You don't. What we need now is a big fiscal stimulus to create jobs and get some money in people's pockets. Interest rates are at historic lows, let's take advantage of it.
