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How can anyone increase the amount of real resources by letting people save more money. If everyone has more money in retirement, the price of items will rise according to supply and demand and no one will benefit (isn't that the definition of inflation?).

This completely disregards the idea of growth and more productive use of a resource in an economy. Greenspans' words were talking specifically about the "financial systems associated with retirement plans facilitate the allocation of resources that supply retirement consumption of goods and services," but that doesn't preclude the creation of more economically viable or more efficient use of those resources. It would be quite possible for new firms to create methods that allow them to deliver services in more efficient ways that differ from the current techniques. This would create more utility for the same constrained resources. In effect, it's not a zero-sum game, which is what you seem to be wrestling with.

Marc
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