Exactly. The key factor in growth is the production of goods an services.
To easily demonstrate: imagine everyone stopped producing goods and services tomorrow in the US.
Everyone would still have the exact same amount of money, but you will not be able to use it to buy a fresh loaf of bread (since none are being baked) or have your car serviced.
The value of money will drop to zero. It won't matter at all if it changes hands; indeed, it won't, since there won't be anything to buy.
Thinking "money changing hands" powers the economy is thus mistaking effect for a cause.
To easily demonstrate: imagine everyone stopped producing goods and services tomorrow in the US.
Everyone would still have the exact same amount of money, but you will not be able to use it to buy a fresh loaf of bread (since none are being baked) or have your car serviced.
The value of money will drop to zero. It won't matter at all if it changes hands; indeed, it won't, since there won't be anything to buy.
Thinking "money changing hands" powers the economy is thus mistaking effect for a cause.