Here is why printing money is a must in capitalism

Profit, by definition, means earning more money than you spent.

Think of kinda like this. I invested 1000$. I got 1200$. Now there is 200$ less dollars in circulation than it was before.

Therefore, the more profit buisnesses make as a whole, the less money there is in economy. 

This would produce an effect where buisnesses have to fight and fight until there is not much money left, causing collapse of economy.

it's also related to how the gold standard is such a bad idea. no gold standard and printing money causes the economy to be stimulated. if people get scared to spen money, at least the fundamentals are such that things are moving, being stimulated.

You're going to spend that $1200, so nothing is out of circulation.

This less money/value, which in of itself is not deflationary so long as the dynamic value (how much is traded) doesn't change. Unfortunately the dynamic value tends to grow with static value; in fact there isn't much in the way of static value besides land and very well designed buildings.

Deflation doesn't cause the collapse of anything if it's slow enough. Just a slight impedance to coinage and/or dealing with decimal places.

Deflation favors savers. Uniform inflation favors investors in real assets. Thieving inflation (what governments do) is no different from counterfeiting, favors the people who manufacture the money.

Human economies ran just fine for the 8000 year we used gold. 

 cause the only bad thing about inflation is that it erodes the spending power of savers who dont invest.

You're going to spend that $1200, so nothing is out of circulation.

Actually, there are plenty of billionares who dont spend all their money, and they only spend to earn more.

In fact, it would be silly to assume that buisness would spend all extra money for any purpose other than to get even more money from the economy.

The deflation itself would cause a fall of profit in buisnesses, leading to race to the last dollar.

In fact, with same amount of money always in economy, deflation doesnt solve the issue, but adds to the issue

And with deflation, wages would also have to constantly decrease because its impossible to pay worker more than you earn from him.

Also, deflation would just add to the profit loss

if wages are lowered then there is even less money circulating.

Are they immortal? No.

Nobody cares about dollars. They want value. Goods and services. Dollars are just trading tools and (rational) people only care about them to quantify the relative value of goods and services.

The profit of a burger joint is entirely defined by how efficiently they produce burgers vs how many people with things to trade want those burgers.

It doesn't matter at all if the burgers cost $10 one year and $0.98 the next. It doesn't matter if they were sold for bitcoin or gold coins.

Deflation isn't a strategy it's a phenomenon. The name for the increasing value of currency due to the increasing production.

Yes. Why does that make "capitalism" (economic liberty) impossible?

No, still the exact same amount. If you "have" to reduce wages that implies you aren't sitting on an ever growing pile of currency.

Are they immortal? No.

You do realize that they dont need to be immortal to extract money and keep it for decades?

Nobody cares about dollars. They want value. Goods and services. Dollars are just trading tools and (rational) people only care about them to quantify the relative value of goods and services.

The profit of a burger joint is entirely defined by how efficiently they produce burgers vs how many people with things to trade want those burgers.

It doesn't matter at all if the burgers cost $10 one year and $0.98 the next. It doesn't matter if they were sold for bitcoin or gold coins.

The profit is determined by earnings minus cost.

Yes. Why does that make "capitalism" (economic liberty) impossible?

I never said it makes it impossible. I said it demands money to be printed.

No, still the exact same amount. If you "have" to reduce wages that implies you aren't sitting on an ever growing pile of currency.

Okay, you are obviously trolling.

Wages are cost of production.

Prices of product determine how much you earn.

You cannot reduce the price of total product and have equal earning.

You cannot reduce the price of total product and have equal earning.

You do realize that if they can't keep it forever it's not really out of circulation?

You can if the value of the currency goes up or more people buy the product. In this case we're talking about the value of the currency going up.

Burger is $1 today, and $0.99 next year, but if everything else is 99% of the price next year then the value gained by selling the burger hasn't changed at all.

Let's look at an extreme example to make it obvious:

You sell burgers. You buy milkshakes and burger ingredients.

Burger ingredients cost $0.80. You sell burger for $1. You buy milkshake for $0.20

That milkshake is your profit. The worth of your labor (your wage as it were). Wages are the profits of employees.

Oh No! Massive but uniform deflation occurs!

Now burger ingredients cost $0.40. Milkshakes cost $0.10. If you tried to sell a burger for $1 everyone would go to your competitors. You sell it for $0.50

Now you're saying (because you don't understand money) that "my wages have gone down, it's the end of the world" and I'm saying "You can still buy a milkshake for every burger you make and sell"

You do realize that if they can't keep it forever it's not really out of circulation?

New rich people come after them, so yes, they can keep it forever.

Your deflation solves nothing.

So in your example, prices of ingredients magically dropped

your wage dropped to exact same what it was.

because any money removed from economy as profit cannot be made up for in price reduction

Since amount of money on the market constantly decreases

and buisnesses cannot make profit without some other buisness being in deficit

Kinda like, if I pay my workers 500$, and you pay yours 500$, the total value we put to market is 1000$

So if I earn 800$ from selling to that market, you can only earn 200$. So one of us is doomed to fail.

Thats how capitalism without printing money works.

Or think of it in this way. 

Trade only works if no one is saving.

If I sell you a stick for 5$ and you sell me a car for 5$, thats equal trade.

But if I sell you a stick for 5$ and refuse to buy your car for 5$, I now have 10$. And I can invest 5$ to produce more sticks to sell it to you until you run out of money and I get rich.

... but I have a bunch of sticks and a car.

I'm the loser in this scenario?

Not magic, deflation

Yep, that's what "uniform deflation" means

Billionaires aren't billionaires because they literally have billions of dollars.

Paying people doesn't add value to the market. People producing things to sell does. Wages don't add value, working does.

The only rule is that whatever unit of value I compute in has to show a net gain or else I'll run out of value.

 It is not the zero sum game you imply.

. but I have a bunch of sticks and a car.

I'm the loser in this scenario?

Yes, because you cant earn money. I thought it was obvious.

Not magic, deflation

I have already explained to you that prices of ingredients cannot magically drop unless wages of those who produce them also drop.

Yep, that's what "uniform deflation" means

Sadly for your fantasy economy, even if all prices dropped proportionally at the same time as well as wages, you would still have battle for profit because wages have to be payed and those who had more profit before can afford higher wages, therefore taking over the buisness who pays workers less.

But if a buisness who runs into deficit simply lowered wages of its workers and prices, but other buisnesses did not do the same, the workers in that buisness would starve because all other prices would be higher than their wages.

And thats assuming you could lower price. Cost of production, machines and materials will not drop any time you need reduction in price of your products.

Billionaires aren't billionaires because they literally have billions of dollars.

No, they obviously have 0 dollars in cash, or just 1000$. I mean, do you honestly believe billionares spend all their profit?

Paying people doesn't add value to the market. People producing things to sell does. Wages don't add value, working does.

Oh, you dont know? If there are no wages, people cannot buy anything.

The only rule is that whatever unit of value I compute in has to show a net gain or else I'll run out of value.

Okay, so how will you pay wages 500$, and earn 200$, and not run into a loss of profit?

ignore the points about those with more profit being better able to compete

just ignoring that each billionare indeed has at least 500 million in cash.

Your claim of all extracted money being spent

and all prices dropping equally at the same time is at best an assumption and a fantasy.

Those who set their prices too high lose sales. Thus they lose profit. 

Those who set their prices too high lose sales. Thus they lose profit. 

This is false, because anyone keeping prices too low would quickly run out of products, and customers would be forced to buy from the one keeping prices high.

So an individual producer choosing to reduce prices and wages does not need to lead to all others reducing prices and wages to same.

It would affect the whole economy at the same time

It would affect the whole economy at the same time

This is just pure assumption.