[Sherman Logan]

When the extant gold has been distributed, and all mines mined clean, that’s it. The aggregate wealth of the country can be no more than this.

Not how it works.

Let's assume gold is the money, and its supply does not increase.

Over a 20 year period the amount of "stuff" in the society doubles.

Each unit of gold is now worth twice as much in stuff, which is significant deflation, but there is no limit on the amount of stuff, which is what "wealth" really is. Money is just a way of storing and transferring value.

Slight inflation is probably the most effective way to encourage genuine economic growth, while deflation tends to discourage it.

[HiTech RedNeck]

Is this what you intend to say, that deflating currency (worth more and more in stuff) has a stifling effect on economic growth (more stuff coming into existence)?

It would certainly stifle borrowing for any purpose, whether it’s opening a new business or starting a new military adventure.

[4Liberty]